CIPP comment The guidance in this FAQ has now been superseded – see CIPP news - 9 February 2015.
Remuneration practices - call for evidence
9 September 2014
The Treasury recently sought evidence about remuneration practices, to help inform decisions on the subject of benefits and expenses in particular. The CIPP have now published their formal response, and are most grateful to all who replied to the survey. The response document contains some interesting results, especially perhaps on preferred candidates for exemption from tax and NIC and on the areas of salary sacrifice expansion in recent years.
Interest on late payment of PAYE and CIS: employer guide
15 September 2014
HMRC have issued a new guide with information for employers on how interest is charged on PAYE and Construction Industry Scheme (CIS) payments made late.
The new employer guide list the payments which can give rise to interest, together with details of how interest is calculated and how HMRC advises the affected employer or contractor.
Modified national insurance for employees assigned to work overseas
17 September 2014
HMRC have noted an error in the current instructions about payment frequency for employees subject to tax equalisation arrangements.
Paragraph 82004 of the PAYE Manual says in sub-paragraph 6 that employers with five or fewer employees subject to tax equalisation arrangements can pay the necessary Class 1 National Insurance contributions on a quarterly basis. HMRC have now acknowledged that this paragraph is not compatible with RTI. It is not feasible to have a PAYE scheme with a mix of monthly and quarterly payments. Therefore employers who apply the paragraph in their main payroll will have apparent underpayments unless their monthly remittances are less than £1,500 per month.
HMRC apologise for the error. They believe that only a very small number of employers are affected, but they will remove the incorrect paragraph very shortly.
Individual tax summaries
22 September 2014
Readers may recall an earlier announcement from the Treasury that taxpayers will receive tax summaries to inform them of what their tax is spent on. More details have now emerged about these summaries.
These summaries will start to go out sometime after 27 October and will continue through to mid-December 2014. HMRC have advised that:
CIPP Policy News Journal
08/04/2015, Page 276 of 521
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