The Chartered Institute of Payroll Professionals
News On Line
Back to contents
Ministerial appointments for CIPP members to be aware of Published: 16 November 2023 Emailed: 22 November 2023
The Following a week of cabinet reshuffles, we can now confirm that there’s a new pensions minister. This will be Paul Maynard. He replaces Laura Trott, who has recently been moved to the position of chief secretary to the Treasury. It has also been confirmed that Nigel Huddleston will be financial secretary to the Treasury, replacing Victoria Atkins, who has now moved to the role of health and social care secretary. We will see what the new pensions minister has in store for the industry, which will be particularly interesting as there’s been so much movement in that space recently. Could the new members of the Treasury also have an impact on chancellor of the Exchequ er, Jeremy Hunt’s autumn statement, due to be delivered on 22 November?
We will be reporting live on the autumn statement, so ensure you keep an eye out for any updates to impact payroll, pensions and rewards professionals!
Back to contents
Confirmation of extension of the investment zones programme from five to ten years
Published: 20 November 2023 Emailed: 22 November 2023
The Department for Business and Trade (DBT) issued a press release on 20 November, confirming that the government will be extending its investment zone programme from five years to ten years. This will subsequently mean that investment zone tax reliefs will also be extended for this period, up until September 2031. The press release indicates that the government funding and tax reliefs on offer are now £160 million.
We may see discussion of this in the chancellor’s Autumn Statement on 22 November. As we’re sure you’re aware, a reduction in the rate of employer National Insurance contributions (NICs) is available for investment zone tax site- based businesses for employees working within that area, where the conditions to claim the relief are met.
As a reminder, it will be possible to apply a zero- secondary rate of employer NICs for such employees’ earnings above the secondary threshold (£9,100 per annum) up to and including an upper secondary threshold (£25,000 per annum) equivalent to the freeport upper secondary threshold, where the conditions to claim the relief are met. The balance of earnings above this upper secondary threshold will be charged at 13.8%. However, the calculation of primary class 1 NICs is unaffected.
Eligibility
For employers based in Great Britain:
• they must have business premises in the investment zone tax site • the employee must be a new hire whose employment starts on or after 6 April 2022 and before the applicable sunset date, and the employee cannot have worked for that employer (or an employer connected to the employer) in the previous 24 months. At the start of the qualifying period, the employer must reasonably expect that the employee will spend a minimum 60% of their working time in the investment zone tax site • eligibility to claim will expire 36 months from the employee’s start date of their employment • there’s no limit on the number of employees an employer can claim for • employers will self-assess eligibility for the relief using available guidance from HMRC • in respect of off-payroll workers, the relief can be claimed by the liable secondary contributor for the eligible employee.
cipp.org.uk
Page 79 of 314
Made with FlippingBook - Online magazine maker