MEMBERSHIP INSIGHT
On your behalf
Policy team update
Diana Bruce MCIPPdip, CIPP senior policy liaison officer , provides an update
Expatriate tax and NICs The Joint Forum on Expatriate Tax and NICs met on 27 October; Samantha Mann, CIPP’s senior policy and research officer, attended. The agenda looked to consider, in brief, the following subjects: ● Consultation on salary sacrifice – Alex Raisen, policy lead from HM Revenue & Customs (HMRC) on the recently closed consultation on salary sacrifice, attended to update the forum on the consultation proposals and possible impact on the expat community, and to highlight the importance of the views of the expat employer. ● Making tax digital (MTD) – another upbeat presentation from the team charged with delivering MTD. Time limits prevented any significant discussion on the impacts that digital services will have on the expat employer community, but the promise of significant ‘real time’ gains were focussed on; time will tell as to how MTD will fully benefit the payroll profession. ● Modified PAYE schemes and the apprenticeship levy – draft employer guidance had been circulated prior to the meeting. A question put to the team was about the 24-month time limit (previously eighteen months) on levy funds being available in the digital apprenticeship payrolls: would the 24-month time limit begin at the point at which the adjustment is processed or when it falls due. The question was taken away for consideration, so we hope to see it in the employer guidance due to be published during December. scheme account for spending on apprenticeship training for modified
switched to the new RBS/NatWest bank account. Q – Is it possible for us to be notified when a new version of the guide for employers is going to be published? An updated version of the employer guide (http://bit.ly/2fxQr7M) will solely contain the new RBS/NatWest details. DWP’s debt management department have begun issuing a mail shot to all employers who are present on their system, informing them of the change, which was due to conclude by the middle of November at the latest. This is the last banking update for the foreseeable future; any other updates are likely to concentrate on process amendments. NMW and the AEO deduction fee Some readers may remember that some six or seven years ago, the policy team were working to have the national minimum wage (NMW) regulations and associated guidance reviewed and amended in light of some employers being caught out. At the time we were receiving several queries relating to the treatment of the £1 deduction fee for attachment of earnings orders (AEOs) and the interaction with the NMW. We began communications with the Department for Business, Innovation and Skills (BIS) – now the Department for Business, Energy & Industrial Strategy (BEIS) – and were informed that employers were not permitted to make the £1 deduction where this would take the employee below the NMW. This is
As ever, if you have any issues arising from administering payments and taxes for your inbound or outbound expat employees please send them to policy@ cipp.org.uk marked for the attention of Samantha Mann. ...time will tell as to how MTD will fully benefit the payroll profession DWP DEA – bank account Following the announcement that the direct earnings attachment (DEA) guide for employers has been revised to reflect a change to the Department for Work and Pensions’ (DWP’s) bank account to which payments are made, questions about the transitional process have been posed to DWP’s debt management team. Q – Can you confirm if the old bank account will remain operational for a while, and if so for how long? DWP have thousands of DEAs set up across its systems, which will currently pay into the existing bank account where it make the Bacs payment. It will be a major undertaking to get them all updated. The HSBC banking details (account number 51826107, sort code 403418) will remain active until March 2017 but DWP have an option to extend beyond this date if absolutely necessary, depending on volumes of employers and customers (via other payment methods) who have not
| Professional in Payroll, Pensions and Reward | December 2016/January 2017 | Issue 26 6
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