Policy hub
payroll working: treating people fairly , reviewed the reforms to off-payroll working and can be located here: http://ow.ly/ VlOx30qBqVe. Although welcoming the delay to the reforms, the sub-committee implores the government to use the additional time to ‘completely rethink’ the legislation. This would be an ambitious task in the short time available to April 2021; could we see another delay? Prior to the outbreak of coronavirus, the CIPP posed a quick poll question to ask: “What concerns do you have about your readiness in April 2020 for off-payroll working rules?” The responses are as follows: ● Payroll obligations: 35% ● Status determinations: 30% ...the potential for employers or others involved in tax administration to be involved in the process...
● Internal processes: 19% ● Transfer of liability: 6%
which sought to find ways to simplify the administration of certain claims and elections, paying particular attention to those made by employees, the self- employed and businesses in relation to income tax, corporation tax, capital gains tax and VAT (value added tax). The consultation was published because claims and elections are a vital part of the operation of the tax system. Frequently, claims are required for a wide variety of reliefs that are available for taxpayers, in relation to many taxes; for example, employees claiming work- related expenses such as for cleaning their working uniform. This call for evidence poses many questions, one of which considers the process “in relation to any reliefs or exemptions being applied automatically, the potential for employers or others involved in tax administration to be involved in the process, including supplying information to HMRC”. At the time of writing we are working with the OTS to put together a brief survey to gather members’ views on this idea. n
● Communications with contractor: 6% ● Communications with the supply chain: 4%. It is crucial to remember that there is only a delay to the implementation of the reforms. They will still go ahead – subject to the government’s response to the report – so preparedness for these reforms continues to be a priority in the coming months.
Claims and elections consultation It is important to remember that despite the situation with the coronavirus pandemic there are still ‘business as usual’ items that need to be addressed. The Office of Tax Simplification (OTS) published a call for evidence
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| Professional in Payroll, Pensions and Reward |
Issue 61 | June 2020
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