CIPP Payroll: need to know - 2023-24

The Chartered Institute of Payroll Professionals

News On Line

- Dealing with promoters of tax avoidance The below consultations have been released:

- Mass Balance approach to account for chemically recycled plastic for Plastic Packaging Tax - Taxation of Employee Ownership Trusts and Employee Benefit Trusts - Review of the VAT Terminal Markets Order legislation

You can see all the legislation and documents that have been published, here. Your input is welcomed on the consultations and draft legislation published, to help shape a more modern and efficient tax system.

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CPI drops to 7.9% Published: 19 July 2023 Emailed: 19 July 2023

The UK's inflation rate has fallen to 7.9% in June, however this still run’s well above the government’s official 2% target.

The CPI rose by 7.9% in the 12 months to June 2023, down from 8.7% in May. The Office for National Statistics (ONS) suggests that the rate in June 2023 was the lowest since March 2022. On a monthly basis, CPI rose by 0.1% in June 2023, compared with a rise of 0.8% in June 2022. The easing in the CPI annual rate between May and June 2023 was a result of prices rising by 0.1% on the month compared with a rise of 0.8% a year earlier. According to data released by the ONS today, falling prices for motor fuel led to the largest downward contribution to the monthly change in CPI annual rates, while food prices rose in June 2023 but by less than in June 2022, also leading to an easing in the rates. There were no large offsetting upward contributions to the change in the rate.

Keep an eye out for our update on the upcoming Bank of England bank rates, set to be released 3 August 2023.

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The Seafarers’ Charter Published: 25 July 2023 Emailed: 26 July 2023

Following from the Seafarers’ Wages Act, the government is going further to enhance worker employment and welfare protections with the introduction of the Seafarers’ Charter .

The voluntary charter, backed by DFDS Ferries, Condor Ferries, Brittany Ferries and Stena, will require participants to guarantee minimum levels of protections for employees. For payroll professionals, the key items you will need to be aware of are the requirements to: • pay seafarers for overtime at a rate of a least 1.25 times the basic hourly rate • provide employees with a full, indefinite contract • allow seafarers to receive social security benefits, including sickness benefits, family benefits, and medical care • provide adequate rest periods between shifts and rosters.

As with any role, careful consideration of working time needs to be given when minimum wage breaches could occur.

The full charter documents detail the additional requirements, such as professional development, rest and drug testing. The question and answer document is also helpful for those who wish to achieve verified seafarers’ charter status.

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