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There’s also detailed discussion of how additional data could be collected across the self -employed population, but we, as the CIPP, focussed on the elements impacting employees paid via payroll.
The consultation response document confirms that the government will proceed with collecting improved data on employee hours worked. Contractual hours worked will need to be provided where those hours are regular (i.e., not irregular hours or zero hours) and actual hours worked will need to be recorded for hourly rate employees (this will be proportionate and shouldn’t case additional administrative burden). HMRC has committed to working alongside businesses and software providers to allow sufficient time for the changes to be implemented successfully and to consider any challenges that may arise from the new requirements. The response document also states there’ll be no further collection of data relating to sector, occupation or location. This is due to the concerns and challenges raised by respondents to the consultation, which centre on the extra administrative burdens this could place on organisations.
The CIPP responded to this consultation, and the response document can be located here.
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New consultation: tougher consequences for promoters of tax avoidance Published: 2 May 2023 Emailed: 3 May 2023
HM Revenue and Customs (HMRC) is continuing their tough stance on tax avoidance schemes and promotors. This new consultation, “ Tougher consequences for promoters of tax avoidance ”, brings forward some proposals to dissuade the use and promotion of such schemes.
This consultation is looking at giving HMRC more power to kerb these schemes and stop their promotion and use. There are two proposed changes within this consultation.
The first is regarding Stop Notices, a legally enforceable notice to any person they suspect is promoting tax avoidance arrangements. Stop Notices can incur civil penalties if breached from £5,000 per failure, up to £1 million for continuing to promote the arrangement. The proposed change in this area is to make failing to comply with a stop notice a criminal offence, in addition to the civil penalties for non-compliance. HMRC is asking if this change is likely to have the desired outcome, deterring the use and promotion of such schemes. The second proposal would give HMRC the power to expedite the disqualification of company directors. With the appropriate evidence, HMRC could bring a director to court to get the struck off without the involvement of the Insolvency Service (INSS), which is usually the case. Your views will help shape proposals and feed into HMRC’s data gathering. The CIPP will be responding to various consultations released today, as part of the tax administration and maintenance day (TAMD). If you are interested and want to have a say, please keep an eye out for CIPP roundtable and think tank invites which will be sent to full, fellow and Chartered members.
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Construction Industry Scheme reform consultation Published: 3 May 2023 Emailed: 3 May 2023
HMRC issued a consultation on Tax Administration and Maintenance Day (27 April 2023) which relates to the Construction Industry Scheme (CIS). This follows ongoing discussions between HMRC and the Construction Forum, of which the CIPP is a member.
There are three main themes to this consultation. These are:
Expanding the statutory compliance test to include VAT compliance
cipp.org.uk
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