Policy News Journal - 2014-15

Changes to the Immigration Rules from 6 April 2015

23 March 2015

A Statement of Changes to the Immigration Rules was published on 26 February 2015. The changes, most of which are due to come into force on 6 April 2015, include the following which are of relevance to employers:  Waiving the Tier 2 'cooling-off period' for short-term grants of Certificates of Sponsorship for 3 months or less. This will enable employers to sponsor interns and then bring them back to the UK for a permanent job within a year. This change will also help global firms who need to send some staff to the UK for short periods each year.  Updating annual minimum salary thresholds for Tier 2 and appropriate salary rates for individual occupations.

See GOV.UK to access the Statement of Changes in full.

Construction Industry

Construction Industry Training Board (CITB) Levy deductions

6 March 2014

HMRC published a news item at the end of January advising customers about a proposed change in practice from 6 April 2014 regarding the CITB levy on employers or contractors. The construction industry expressed some concerns and as a result HMRC has reviewed and revised their advice.

Construction Industry Scheme (CIS)

We can confirm that the CIS applies only to payments made under construction contracts. Where contractually agreed deductions such as insurance charges, amounts equal to the ‘CITB levy’ or any other training costs are deducted before payment then CIS is only operated on the amount paid after any deduction for materials and VAT


We can confirm that where the parties have contractually agreed to an amount equating to the ‘CITB levy’ being passed on to the subcontractor, the subcontractor’s supply for VAT purposes is reduced by the equivalent amount of the ‘CITB levy’ deduction.

Further information about the CITB levy is available on HMRC’s website .

The Income Tax (PAYE) and the Income Tax (CIS) (Amendment) Regulations 2014

28 April 2014

We have published Statutory Instruments making amendments to the Income Tax (Pay As You Earn) Regulations 2003 and the Income Tax (Construction Industry Scheme) Regulations 2005 with accompanying Explanatory Memoranda.

CIPP Policy News Journal

08/04/2015, Page 50 of 521

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