50% of those who have used custom scale rates believe they would be disadvantaged if they were to be withdrawn. Industries most affected by their withdrawal would be airlines, sales and those sending workers abroad; only 18% of all respondents believe that retaining custom scale rates would bring added complexity for those who do not use them; those already using custom scale rates are in favour of self-certifying a sampling exercise; none of the respondents were micro businesses (or payroll bureaux acting on behalf of micro business clients) using scale rates to pay director expenses; almost 80% of respondents would welcome the opportunity to continue using their dispensation during a transition period. The majority of respondents suggested the transition period should last between 12 and 24 months; almost three quarters of respondents welcomed a delay between the legislation being introduced and the exemption coming into force, with most suggesting this being for a period of one year; and clear, concise and timely guidance is crucial to ensuring that all employers understand what their obligations will be once the legislation is in place.
CIPP Response to the HMRC consultation on voluntary payrolling
8 September 2014
The CIPP has now submitted its response to the HMRC consultation on voluntary payrolling. This proposal would allow employers to report some or all of their Benefits in Kind through the payroll. The research was conducted through an electronic online survey circulated to CIPP and AAT members to which there were 79 responses. The Policy team would like to thank all those members of both the CIPP and the AAT who responded to this survey.
The key findings of the response are:
Although 69% of all respondents agree that voluntary payrolling provides the best framework for simplicity, opinion is more divided between agent respondents and employers, with only 42% of AAT members agreeing that this is the best route, compared with 78% of CIPP members. Those who disagree provide valid arguments that the opportunity to payroll should either be compulsory for everyone or should not be available to anyone. Businesses with between 5,001 and 10,000 employees were the least likely to agree with voluntary payrolling. Almost 76% of respondents agreed that they would seek to payroll some or all benefits, with 68% of AAT members and 81% of CIPP members agreeing that they would introduce this for some or all of their benefits. There was common agreement that payrolling would not be suitable for all benefits. The number agreeing that they are likely to implement payrolling for some or all of their benefits increases in direct correlation with the number of employees. Almost 57% of all respondents felt that employers should be free to choose, from an approved list, which benefits to payroll. Three quarters of all respondents agreed that payroll should be compulsory for all employees receiving that benefit with no exceptions. There was strong disagreement that payrolling should be irrevocable with only 23% agreeing with this suggestion. Almost 85% of all respondents preferred to account for Class 1A NICs in real time. More than 55% of businesses with more than 10,000 employees are currently payrolling at least one benefit.
CIPP Policy News Journal
08/04/2015, Page 161 of 521
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