Policy News Journal - 2011-2012

Policy News Journal - 2011-2012

Policy News Journal

2011-12

Produced by the CIPP policy and research team

Introduction

This Policy News Journal has been produced by the CIPP Policy and Research team for the exclusive benefit of members. The Journal contains all relevant payroll News On Line items and is indexed and categorised for easy reference. Each item is in date order (the most recent entry being at the bottom) to ensure you know you have the latest updates on any given subject. The Journal will be produced on an annual basis running from 6 April to encompass a full tax year. It will be updated on a weekly basis and published within the News On Line weekly email alert at least every two weeks. Using the index is easy – find your topic of interest and CTRL + click will take you straight there. Any comments, suggestions or questions, please email [email protected]

CIPP Policy News Journal

09/10/2012, Page 2 of 234

Index Attachment of Earnings .................................................................................... 14 CIPP SURVEY: PROPOSALS TO CHANGE THE WAY ATTACHMENT OF EARNINGS ORDERS ARE CALCULATED.......................................................................................... 14 CIPP SURVEY RESPONSE: PROPOSALS TO CHANGE THE WAY ATTACHMENT OF EARNINGS ORDERS ARE CALCULATED ................................................................ 14 ATTACHMENT ORDERS: NEW LINK TO A GUIDE FOR EMPLOYERS ......................... 14 Deduction of Earnings Orders.......................................................................... 15 Child Maintenance Enforcement Commission (CMEC) ........................................15 STANDARDISED DEO SCHEDULE REPORT ................................................................. 15 CMEC UPDATE ............................................................................................................... 15 STANDARDISED DEO SCHEDULE REPORT ................................................................. 16 FAQ UPDATE................................................................................................................... 16 TRANSFER OF FUNCTIONS OF CMEC.......................................................................... 16 CHILD MAINTENANCE ENFORCEMENT COMMISSION CONSULTATION ................... 16 CIPP RESPONSE TO CMEC CONSULTATION............................................................... 17 Better Regulation............................................................................................... 17 TREASURY LAUNCHES REVIEW OF RED TAPE IN THE TAX SYSTEM....................... 17 CONSULTATION ON THE REMOVAL OF 36 TAX RELIEFS........................................... 17 SIMPLER REPORTING FOR THE SMALLEST BUSINESSES: DISCUSSION PAPER.... 18 RECOMMENDATIONS TO SIMPLIFY UK TAX SYSTEM FOR SMALL BUSINESSES.... 19 SIMPLER INCOME TAX FOR THE SIMPLEST SMALL BUSINESSES............................ 20 Red Tape Challenge.................................................................................................20 RED TAPE CHALLENGE SETS RETAILERS FREE FROM REGULATIONS .................. 20 EMPLOYMENT RELATED LAW....................................................................................... 20 Citizen News....................................................................................................... 21 Migrant Workers.......................................................................................................21 PROPOSALS SET OUT FOR BREAKING THE LINK BETWEEN TEMPORARY AND PERMANENT MIGRATION .............................................................................................. 21 CONFIRMATION OF EDUCATIONAL OVERSIGHT ARRANGEMENT FOR TIER 4 SPONSORS ..................................................................................................................... 22 HIGHLY TRUSTED SPONSORSHIP FOR TIER 4 SPONSORS ...................................... 22 GUIDANCE PUBLISHED IN NEW FORMAT FOR TIER 4 SPONSORS........................... 22 REDUCTION IN JOBS AVAILABLE TO MIGRANTS ........................................................ 23 STANDARDS RAISED FOR THE STUDENT VISA SYSTEM........................................... 24 FOREIGN NATIONALS RIGHT TO WORK IN THE UK ONLINE CHECKS FOR EMPLOYERS ................................................................................................................... 24 NEW STUDENT RULES TO WELCOME THE BRIGHTEST AND BEST.......................... 25 DETAILS OF THOSE WHO EMPLOY ILLEGAL WORKERS WILL NOW BE PUBLISHED ..................................................................................................................... 25 CHANGES TO THE IMMIGRATION RULES .................................................................... 25 Non-domiciles ..........................................................................................................27 REFORM OF THE TAXATION OF NON-DOMICILED INDIVIDUALS............................... 27 Tax residence ...........................................................................................................28 STATUTORY DEFINITION OF TAX RESIDENCE............................................................ 28 Construction Industry ....................................................................................... 28 DOS AND DON’TS FOR P35 COMPLETION FOR CONSTRUCTION INDUSTRY SCHEME .......................................................................................................................... 28 NEW LATE FILING PENALTIES FOR CIS RETURNS FROM 6 OCTOBER 2011............ 28 NEW FILING PERIODS FOR CONSTRUCTION INDUSTRY SCHEME ........................... 28 CONSUTRUCTION INDUSTRY HOLIDAY SCHEME....................................................... 29 Employment Tribunals ...................................................................................... 29 PREGNANCY, POSITIVE DISCRIMINATION & POLKEY................................................ 29 NOTICE OF DISMISSAL .................................................................................................. 30 EMPLOYMENT STATUS UNDER DISABILITY DISCRIMINATION ACT 1995 ................. 30 IMPLIED TERMS.............................................................................................................. 31 NEGLIGENT (NON-) REFERENCES ............................................................................... 31

CIPP Policy News Journal

09/10/2012, Page 3 of 234

SICKNESS AND ACCRUED ANNUAL LEAVE................................................................. 32 EQUAL PAY TRIBUNAL................................................................................................... 32 EMPLOYER’S RETIREMENT NOTICES MAY BE INVALID............................................. 33 TAX TREATMENT OF EMPLOYEE’S LEGAL FEES ON TERMINATION ........................ 33 CIPP Policy request clarity from HMRC ........................................................................ 34 ACCIDENTAL TEST SUBMISSION OF P35 NOT A REASONABLE EXCUSE................. 35 COST CAN JUSTIFY DISCRIMINATION.......................................................................... 36 NON-PAYMENT OF WAGES WHEN EMPLOYEE IN REMAND ...................................... 36 TUPE AND COLLECTIVE BARGAINING ......................................................................... 37 TUPE LOOPHOLE LANDS EMPLOYERS WITH UNEXPECTED OBLIGATIONS............ 39 DISMISSAL FOR REFUSING PAY CUT .......................................................................... 39 DUTY TO CONSIDER REQUEST TO WORK BEYOND RETIREMENT .......................... 39 CONSTRUCTIVE DISMISSAL.......................................................................................... 40 PAYMENT FOR OVERTIME ............................................................................................ 41 COMPULSORY RETIREMENT AGE................................................................................ 41 TUPE SERVICE PROVISION CHANGEOVERS .............................................................. 42 SICKNESS AND ACCRUED ANNUAL LEAVE................................................................. 42 TRIBUNAL CRITICISES HMRC FOR DELAY IN ISSUING PENALTIES .......................... 43 EMPLOYMENT STATUS.................................................................................................. 43 PAID HOLIDAY FOR SICK WORKERS............................................................................ 44 LANDMARK EQUAL PAY RULING FOR LONDON NURSE............................................. 44 SUMMARY DISMISSAL TRUMPS NOTICE PERIOD....................................................... 45 GROSS MISCONDUCT AND BONUS.............................................................................. 45 CONTINUITY OF EMPLOYMENT IN THE NHS ............................................................... 46 NMW AND SLEEPING ON THE JOB ............................................................................... 46 ANNUAL EMPLOYMENT TRIBUNAL STATISTICS ......................................................... 47 FIRST WORKER CHARGED UNDER THE BRIBERY ACT ............................................. 47 REST BREAKS ................................................................................................................ 48 PILOT’S HOLIDAY PAY NOT LIMITED TO BASIC SALARY............................................ 48 JOB REFERENCES ......................................................................................................... 49 DISMISSAL: WORK RELATED COMMENTS ON FACEBOOK........................................ 49 MENTIONING UNPROVEN ALLEGATIONS IN A REFERENCE NOT UNFAIR ............... 50 DISABILITY DISCRIMINATION: REASONABLE ADJUSTMENTS ................................... 51 TUPE AND VARIATION OF CONTRACT......................................................................... 51 DISMISSAL CANNOT BE RETRACTED – NORMALLY................................................... 52 NHS TERMS AND CONDITIONS OF SERVICE............................................................... 52 MITIGATION OF LOSS .................................................................................................... 53 RE-ENGAGEMENT AND ALTERNATIVE VACANCIES ................................................... 54 ILLEGAL AND IMMIGRATION RESTRICTIONS .............................................................. 54 HOLIDAY PAY AND SICK ABSENCE .............................................................................. 55 CJEU RULES ON RIGHT TO CARRY OVER HOLIDAY ACCRUED WHILST ON LONG TERM SICK LEAVE.......................................................................................................... 55 PART-TIME PENSION CLAIMS ....................................................................................... 56 STRINGFELLOWS - ARE DANCERS EMPLOYEES?...................................................... 56 MARITAL DISCRIMINATION............................................................................................ 57 PENSION SWITCH RULED LAWFUL BY HIGH COURT ................................................. 57 WORKING TIME AND ANNUAL LEAVE .......................................................................... 58 LIVE IN HOUSEKEEPERS AND NATIONAL MINIMUM WAGE ....................................... 58 HR MANAGER’S USE OF LINKEDIN RESULTS IN CONSTRUCTIVE DISMISSAL CASE................................................................................................................................ 59 COURT APPEAL REAFFIRMS LONG ESTABLISHED POWER FOR THE TAXMAN...... 59 ALMOST £1 MILLION AWARED FOR RACIAL DISCRIMINATION .................................. 60 IS IT JUSTIFIABLE TO RETIRE OLDER EMPLOYEES TO MAKE WAY FOR YOUNG TALENT?.......................................................................................................................... 61 DETRIMENT AND CAUSATION....................................................................................... 61 REDUNDANCY AND SUITABLE ALTERNATIVE EMPLOYMENT ................................... 62 RECRUITMENT AGENCY LOSES TRIBUNAL OVER SALARY SACRIFICE SCHEME... 62 EMPLOYMENT STATUS.................................................................................................. 63 RESTRICTIVE COVENTANTS......................................................................................... 64

CIPP Policy News Journal

09/10/2012, Page 4 of 234

SHARES IN CASH BOX COMPANIES SHOULD BE SUBJECT TO INCOME TAX.......... 64 POST EMPLOYMENT VICTIMISATION........................................................................... 65 EMPLOYEE WORKING ABROAD COULD BRING UNFAIR DISMISSAL CLAIM............. 66 EMPLOYMENT RIGHTS WHEN CONTRACT ILLEGAL................................................... 66 ARE EMPLOYMENT JUDGES ‘WORKERS’? .................................................................. 67 REDUNDANCY AND SUITABLE ALTERNATIVE EMPLOYMENT ................................... 67 REDUNDANCY AND POOL OF ONE............................................................................... 68 EMPLOYEES NOT ENTITLED TO PAYMENT FOR OVERTIME ..................................... 68 TUPE AND SUBSTANTIAL CHANGE IN WORKING CONDITIONS ................................ 69 YET ANOTHER CASE OF LONG TERM SICK EMPLOYEES AND ANNUAL LEAVE...... 69 MARITAL DISCRIMINATION............................................................................................ 70 Expenses and Benefits ..................................................................................... 70 Advisory Fuel Rates.................................................................................................70 CHANGE TO CALCULATION AND ASSESSMENT OF ADVISORY FUEL RATES ......... 70 HMRC PUBLISHES REVISED ADVISORY FUEL RATES ............................................... 71 ADVISORY FUEL RATES – 1 SEPTEMBER 2011........................................................... 71 ADVISORY FUEL RATES – 1 DECEMBER 2011............................................................. 72 ADVISORY FUEL RATES – 1 MARCH 2012.................................................................... 72 AMAPs ......................................................................................................................73 APPROVED MILEAGE ALLOWANCE PAYMENTS (RATES) STATUTORY INSTRUMENT .................................................................................................................. 73 Company Vehicles ...................................................................................................73 CAR FUEL BENEFIT STATUTORY INSTRUMENT ......................................................... 73 RURAL FUEL DUTY RELIEF FOR SCOTTISH ISLANDS AND SCILLY ISLES ............... 73 WITHDRAWAL OF EXTRA STATUTORY CONCESSION ON COMPANY CARS FOR DISABLED DRIVERS WITHOUT BLUE BADGES............................................................ 73 Employer Supported Childcare...............................................................................74 CODE OF PRACTICE PUBLISHED BY CHILDCARE VOUCHER PROVIDERS ASSOCIATION ................................................................................................................. 74 FURTHER GUIDANCE FOR EMPLOYER SUPPORTED CHILDCARE ........................... 74 EMPLOYER SUPPORTED CHILDCARE GUIDANCE...................................................... 75 NEW CHILDCARE VOUCHER SCHEME IMPACT ASSESSMENT SURVEY .................. 75 E18 UPDATED WITH EMPLOYER SUPPORTED CHILDCARE CHANGES.................... 75 CIPP POLICY SURVEY: NEW CHILDCARE VOUCHERS IMPACT ASSESSMENT FOLLOW UP .................................................................................................................... 75 CHILDCARE VOUCHER IMPACT SURVEY RESULTS ................................................... 76 Expense and Benefits - General .............................................................................76 TAX RELIEF FOR LATE NIGHT TAXIS WILL BE RETAINED.......................................... 76 EMPLOYMENT INCOME – DEFINITION OF MOBLIE PHONE (TREATMENT OF SMARTPHONES)............................................................................................................. 77 REIMBURSING ADDITIONAL HOUSEHOLD EXPENSES FOR HOME WORKERS........ 77 HMRC CONFIRM MONTHLY GUIDELINE RATE TO BE USED FOR HOME WORKERS....................................................................................................................... 77 Payrolling..................................................................................................................78 IMPORTANT INFORMATION FOR PAYROLLED EXPENSES AND BENEFITS.............. 78 ADDITIONAL PRACTICAL GUIDANCE FOR PAYROLLING............................................ 78 HMRC WILL ACCEPT PAYROLLED BENEFIT DETAILS ON A CD................................. 79 HMRC WILL NO LONGER ACCEPT PAYROLLED BENEFIT DETAILS ON A CD........... 79 Professional Fees ....................................................................................................79 PROFESSIONAL FEES AND SUBSCRIPTIONS LIST UPDATED ................................... 79 P11D..........................................................................................................................80 P11D PROCESSING UPDATE FROM HMRC.................................................................. 80 SIGNATURES ON FORMS P11D(b) ................................................................................ 81 WITHDRAWAL OF EXTRA STATUTORY CONCESSION FILING EXTENSION FOR FORM P11D(b)................................................................................................................. 81 Salary Sacrifice ........................................................................................................82 CHANGES TO THE TREATMENT OF CERTAIN SUPPLIES MADE BY EMPLOYERS UNDER SALARY SACRIFICE ARRANGEMENTS ........................................................... 82

CIPP Policy News Journal

09/10/2012, Page 5 of 234

GUIDANCE ON CYCLE TO WORK AND VAT PAYMENTS ............................................. 82 HMRC General.................................................................................................... 83 HMRC SCANNING INCOMING MAIL............................................................................... 83 Scanning incoming compliance mail moves forward ..................................................... 83 HMRC ENQUIRY CENTRES............................................................................................ 84 HMRC TARGETING TAX CHEATS IN THE E-MARKETPLACE....................................... 84 HM TREASURY COMMITTEE FINDS SERIOUS DISSATISFACTION WITH HMRC....... 84 HMRC NEW ENHANCED RECOGNITION SCHEME....................................................... 85 CIPP Policy survey ....................................................................................................... 85 Update for software developers .................................................................................... 86 HMRC DRAFT GUIDANCE ON LITIGATION AND DISPUTE RESOLUTION................... 86 CLOSURE OF OLD URLS FOR THE LIVE DPS .............................................................. 86 OFFICIAL TAX GAP NATIONAL STATISTICS ................................................................. 87 TAXMAN URGES EMPLOYERS TO DITCH ‘A N OTHER’............................................... 87 HMRC TACKLES SCRAP METAL TAX DODGERS ......................................................... 88 HMRC CONSULTATION ON PERSONAL TAX................................................................ 88 TEMPORARY SUSPENSION OF 2011-12 PAYE PAYMENT BOOKLETS....................... 88 HMRC TARGETS EMPLOYER >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110 Page 111 Page 112 Page 113 Page 114 Page 115 Page 116 Page 117 Page 118 Page 119 Page 120 Page 121 Page 122 Page 123 Page 124 Page 125 Page 126 Page 127 Page 128 Page 129 Page 130 Page 131 Page 132 Page 133 Page 134 Page 135 Page 136 Page 137 Page 138 Page 139 Page 140 Page 141 Page 142 Page 143 Page 144 Page 145 Page 146 Page 147 Page 148 Page 149 Page 150 Page 151 Page 152 Page 153 Page 154 Page 155 Page 156 Page 157 Page 158 Page 159 Page 160 Page 161 Page 162 Page 163 Page 164 Page 165 Page 166 Page 167 Page 168 Page 169 Page 170 Page 171 Page 172 Page 173 Page 174 Page 175 Page 176 Page 177 Page 178 Page 179 Page 180 Page 181 Page 182 Page 183 Page 184 Page 185 Page 186 Page 187 Page 188 Page 189 Page 190 Page 191 Page 192 Page 193 Page 194 Page 195 Page 196 Page 197 Page 198 Page 199 Page 200

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