NHS foundation trusts still using off-payroll deals
15 July 2014
The Treasury introduced restrictions in 2012 on the use by public sector employers of individuals paid through personal service companies. According to Public Finance, one fifth of NHS foundation trusts have yet to comply with these restrictions. The introduction of the rules followed media criticism about the way in which personal service companies and similar arrangements can be used to delay, and in some circumstances reduce, payment of the tax which would be payable under normal PAYE procedures. The restrictions include a requirement that any contractor working with government for more than six months must provide satisfactory assurances on their tax affairs. In addition, senior appointments at board level or with significant financial responsibility must be on the central payroll within six months. Previous reviews of the operation of these rules have reported failures in some government departments. The latest report from Public Finance indicates continued breaches of the rules in some NHS trusts.
Employment Intermediaries and false self employment
12 August 2014
The government announced at Autumn Statement 2013 that they would tackle the use of Employment Intermediaries facilitating false self-employment to avoid employment taxes. As a part of this, from April 2015 Employment Intermediaries will be required to keep records and provide returns to HMRC containing details of workers they place but do not pay via PAYE. HMRC have confirmed that these returns will need to contain information such as: worker name, Date of birth, UTR, worker address, NINO, amount paid, hours worked. The complete data set for the return is currently being finalised and will be made available shortly.
Employment Intermediaries: reporting requirements
5 September 2014
The Government has previously announced that from 6 April 2015, intermediaries must send details of workers they place with clients who are neither: direct employees being treated as employees.
HMRC have now published advance details of the reports which intermediaries will need to send.
In particular they have confirmed that:
From 6 April 2014, you must be able to prove to HMRC, if asked, why the worker wasn’t treated as an employee. You should work with the client and worker to get suitable evidence to demonstrate this. From 6 July 2015 onwards you’ll have to send HMRC reports that contain details of all workers and their payments where PAYE wasn’t operated. You must send HMRC your first report by 5 August 2015 - this will cover the 3 months from 6 April 2015 to 5 July 2015.
CIPP Policy News Journal
08/04/2015, Page 303 of 521
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