Policy News Journal - 2015-16

Policy News Journal - 2015-16

Policy News Journal

2015-16

As at 6 April 2016

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 is produced on a tax year basis and by the end of each tax year will be closed off and restarted with any significant live news items being carried forward to the following year’s edition and then added to on a weekly basis with each edition of News On Line.

Using the index is easy – find your topic of interest and CTRL + click will take you straight there.

The titles of new news articles added in the last fortnight are highlighted in blue to ensure that they will be clearly visible in the index.

If you have any comments or suggestions about the Journal, please email [email protected]

CIPP Policy News Journal

25/04/2016, Page 2 of 453

Contents Apprenticeships................................................................................................. 16 Apprenticeship funding reform in England payment mechanisms and funding principles.................................. 16 Apprenticeship funding; a sigh of relief? ............................................................................................................ 16 Additional 500 Modern Apprenticeship places in Scotland................................................................................. 16 Apprenticeships to be given equal legal treatment as degrees .......................................................................... 17 Britain’s fastest-growing companies to support apprenticeship recruitment....................................................... 17 Get in. Go far - a guide to Apprenticeships ........................................................................................................ 18 Consultation on protecting the term apprenticeship ........................................................................................... 18 Class 1 Employer National Insurance Contributions (NICs) zero-rate for apprentices under 25........................ 19 'Get in and go far’ with an apprenticeship at exam results time ......................................................................... 19 Apprenticeships levy: employer owned apprenticeships training ....................................................................... 20 CIPP survey: Consultation on apprenticeship levy............................................................................................. 20 Protecting the term apprenticeship .................................................................................................................... 21 CIPP respond to BIS in respect of the Apprenticeships Levy............................................................................. 21 Apprenticeship levy consultation response ........................................................................................................ 22 Apprenticeship Levy draft legislation.................................................................................................................. 22 An apprenticeship can take you anywhere......................................................................................................... 23 Government provides more detail about the apprenticeship levy....................................................................... 23 Attachment of Earnings .................................................................................... 25 Attachment of Earnings Order guide.................................................................................................................. 25 Direct Earnings Attachments change................................................................................................................. 25 Higher Rate Direct Earnings Attachments (DEAs) ............................................................................................. 25 The Diligence against Earnings (Variation) (Scotland) Regulations 2015 .......................................................... 26 Direct Earnings Attachments: employer guidance ............................................................................................. 27 CIPP Policy & Research – informal consultation ........................................... 28 Informal consultation ........................................................................................................................................... 28 Non-guaranteed overtime and holiday pay - second CIPP research survey ...................................................... 28 CIPP survey - Saving through payroll research ................................................................................................. 28 CPD survey for CIPP members ......................................................................................................................... 28 CIPP Payslip statistic survey 2014-15 ............................................................................................................... 28 Reconciliation and reallocation of remittance – your views and experiences..................................................... 29 CIPP survey: recovering over payments - do you self-serve?............................................................................ 30 The CIPP releases its annual payslip survey findings........................................................................................ 30 CIPP survey: recovering over payments - do you self-serve?............................................................................ 31 CIPP Survey: Awareness of the Scottish Rate of Income Tax (SRIT) ............................................................... 32 Survey Results – HMRC contact centres – what CIPP members experience.................................................... 32 Would showing different student loan deduction types separately on payslip be an admin burden? ................. 32 Awareness of Scottish Rate of Income Tax ....................................................................................................... 33 Quick Polls ............................................................................................................................................................ 35 Manifesto quick poll results ................................................................................................................................ 35 HMRC Helpline quick poll – and the payroll industry says yes........................................................................... 35 GOV.UK - simpler, clearer, faster? What did you think? .................................................................................... 36 RTI has improved the end of tax year experience for payroll professionals ....................................................... 36 CIPP Quick Poll – Fit for work service ............................................................................................................... 37 National Minimum Wage quick poll results......................................................................................................... 37 Your experience with HMRC contact centre survey September 2015? ............................................................. 37 Payroll Giving poll results................................................................................................................................... 38 How do you relay critical information to your clients? ........................................................................................ 39 Scottish Rate of Income Tax not sufficiently publicised ..................................................................................... 39 Is email the most effective method of relaying critical information? ................................................................... 39 Should staff be given a choice of festive benefit? .............................................................................................. 40 How ready are you and your software for the end of Contracting-out? .............................................................. 40 Construction Industry ....................................................................................... 42 Construction Industry Scheme (CIS) guidance .................................................................................................. 42 Construction Industry Scheme (CIS) Penalty and Appeal system ..................................................................... 42 Construction Industry Scheme – are you an intermediary?................................................................................ 43 Calling the Construction Industry - employment Intermediaries reporting - deadline is approaching ................. 43 Improving the operation of the Construction Industry Scheme........................................................................... 44 Posted Workers Enforcement Directive: Impact on construction industry .......................................................... 44 CIS contractor monthly returns & subcontractor verifications............................................................................. 45 Employment News............................................................................................. 47 Citizen News.......................................................................................................................................................... 47 Changes to the Immigration Rules from 6 April 2015......................................................................................... 47 Right to work checks: guide for employers......................................................................................................... 47 UK immigration - Tier 2 under review................................................................................................................. 47 Immigration Bill to create a consistent experience for taxpayers ....................................................................... 48 Biometric Residence Permit rollout now complete ............................................................................................. 48 Rogue employers could have their businesses closed ...................................................................................... 49 Guidance on examining identity documents....................................................................................................... 49

CIPP Policy News Journal

25/04/2016, Page 3 of 453

CIPP Policy News Journal 25/04/2016, Page 4 of 453 Higher salary thresholds and business levy recommended for hiring migrant workers ...................................... 50 Changes to Tier 2 immigration route confirmed ................................................................................................. 50 Employment Law & Guidance ............................................................................................................................. 52 Contracts top concern in British workplaces ...................................................................................................... 52 Top ten ways employers lose employment tribunals.......................................................................................... 52 Small Business Conciliation Service to be created ............................................................................................ 52 Whistleblowing: list of prescribed people and bodies......................................................................................... 53 Review into the impact of Employment Tribunal fees ........................................................................................ 53 Help for small firms: Handling pay and wages ................................................................................................... 54 New Acas guidance on paying employees......................................................................................................... 54 Acas Early Conciliation one year on .................................................................................................................. 55 Acas equality and discrimination guides ............................................................................................................ 55 Preventing illegal working .................................................................................................................................. 55 Scotland to Abolish Employment Tribunal Fees................................................................................................. 56 Employment tribunal fees briefing paper............................................................................................................ 56 New Enterprise Bill published ............................................................................................................................ 57 New Acas disability discrimination guide............................................................................................................ 58 Dealing with legal highs in the workplace........................................................................................................... 58 Acas Workplace Trends Report ......................................................................................................................... 59 Whistleblowing: list of prescribed people and bodies ......................................................................................... 59 Carrying out a redundancy programme.............................................................................................................. 60 Annual compensation awards – increase of limits ............................................................................................. 60 Employment Status .............................................................................................................................................. 62 CIPP Survey on Employment Status ................................................................................................................. 62 Employment status and false self-employment.................................................................................................. 62 Employment Tribunals ......................................................................................................................................... 64 Whistleblowing: EAT says 'reasonable belief in public interest' is low threshold ................................................ 64 Stress at Work - Foreseeability of Injury ............................................................................................................ 64 Changing working hours .................................................................................................................................... 65 Tribunal to reconsider if redundancy near pensionable age is allowed .............................................................. 65 ECJ judgement on Collective Consultation ........................................................................................................ 66 Suspending Disciplinary Hearing for Grievance................................................................................................. 67 Employment Status: Ministers of Religion.......................................................................................................... 67 Union Representatives and Working Time......................................................................................................... 67 Collective Redundancy Consultation - Establishment........................................................................................ 68 Pay Deductions for Strike................................................................................................................................... 68 Discriminatory to refuse maternity leave for gay dads........................................................................................ 69 Whistleblowing: Meaning of Disclosure.............................................................................................................. 69 Gay v Religious Beliefs ...................................................................................................................................... 70 Status of Employee after TUPE Objection ......................................................................................................... 70 No Implied Term Duty to Disclose Allegations of Misconduct ............................................................................ 71 TUPE: Assignment of Employees ...................................................................................................................... 71 Travel time to first job of the day counts as working time................................................................................... 72 Collective Redundancy Consultation.................................................................................................................. 72 Information and Consultation of Employees Regulations – the meaning of undertakings.................................. 73 Indirect Age Discrimination ................................................................................................................................ 73 Agency Workers Regulations............................................................................................................................. 74 Social Media - EAT ruling provides a cautionary tale......................................................................................... 74 Choice of Companion at Disciplinary Hearing.................................................................................................... 75 Reed recruitment agency loses travel expenses appeal .................................................................................... 75 Police to appeal against EAT decision on age discrimination ............................................................................ 76 Long-term sick employee not assigned under TUPE ......................................................................................... 76 Travel time to first and last job of the day........................................................................................................... 77 Discrimination claim can be brought forward by a Limited Company................................................................. 77 National Minimum Wage: Time when sleeping .................................................................................................. 77 Tribunal rules on pensions discrimination case.................................................................................................. 78 Whistleblowing: breach of contract and the public interest................................................................................. 78 TUPE: Change in Identity of Employer .............................................................................................................. 79 Disability Discrimination and Reasonable Adjustments ..................................................................................... 79 Instruction to speak English at work not discrimination ...................................................................................... 80 Automatic enrolment: British domiciled seafarers .............................................................................................. 80 Monitoring employees' use of the internet.......................................................................................................... 80 Upper Tribunal holds damages for injury for feelings are taxable ...................................................................... 81 Childcare vouchers and maternity leave ............................................................................................................ 81 Acas Early Conciliation ...................................................................................................................................... 82 Devolution of Scottish employment tribunals ..................................................................................................... 82 Starbucks employee wins dyslexia discrimination case ..................................................................................... 82 Is pulling a sickie a breach of conduct?.............................................................................................................. 83 Disability and imputed knowledge...................................................................................................................... 83 The UK Supreme Court rules on UBS and Deutsche Bank bonus cases .......................................................... 84 Equal Pay............................................................................................................................................................... 85 Supermarket staff bring legal action over equal pay .......................................................................................... 85 Equal pay settlement.......................................................................................................................................... 85

CIPP Policy News Journal 25/04/2016, Page 5 of 453 Fit for Work............................................................................................................................................................ 86 Fit for Work update ............................................................................................................................................ 86 CIPP Quick Poll – Fit for work service ............................................................................................................... 86 Fit for Work guidance for employers .................................................................................................................. 86 Fit for Work team release road show details for Leeds and Newcastle.............................................................. 87 Fit for Work employer referral service ................................................................................................................ 87 Fit for Work Roadshows..................................................................................................................................... 88 Fit for Work launch new webinars ...................................................................................................................... 88 Fit for Work roadshow webinars for employers .................................................................................................. 89 Low take-up of Fit for Work ................................................................................................................................ 89 Fit for Work FAQ webinar for employers ............................................................................................................ 89 Fit for Work can work alongside occupational health ......................................................................................... 90 Gender Pay Gap.................................................................................................................................................... 91 Gender pay reporting ......................................................................................................................................... 91 Consultation on closing the Gender Pay Gap .................................................................................................... 91 Closing the Gender Pay Gap – CIPD and CIPP joint survey ............................................................................. 91 Gender Pay Gap: Large employers to publish bonus information...................................................................... 92 Government consultation response: Closing the Gender Pay Gap.................................................................... 92 Consultation on Mandatory Gender Pay Gap Reporting .................................................................................... 93 Gender experience in the finance sector............................................................................................................ 93 General Employment News.................................................................................................................................. 95 SME guide on managing older workers ............................................................................................................. 95 Improving pay transparency is a major employer challenge .............................................................................. 95 Be on the lookout for unexpected invoices......................................................................................................... 96 Three-quarters of staff not told what they need to achieve to get a pay rise ...................................................... 96 Survey finds respecting staff is key to attracting talent ...................................................................................... 97 Modern Slavery Act: Annual statement requirement.......................................................................................... 98 Is it taboo to talk politics in the workplace? ........................................................................................................ 98 TUC publishes new guide to epilepsy in the workplace ..................................................................................... 98 Paper counterpart to the photocard driving licence will be abolished................................................................. 99 Right to work checks: guide for employers......................................................................................................... 99 LITRG calls for clarity on treatment of couples in the tax system....................................................................... 99 Tax credits - help your employees renew without delay................................................................................... 100 Cost of cyber security breaches doubles ......................................................................................................... 101 Disclosure and Barring Service online tracking................................................................................................ 101 Time off and pay for parents having a child through surrogacy........................................................................ 102 Invisible carers in the workplace need more support from employers.............................................................. 102 Collective Redundancy Consultation - Insolvency ........................................................................................... 103 Wages paid to illegal immigrants will be seized under new Immigration Bill .................................................... 104 HMRC help and support on employing people................................................................................................. 104 Driving licence check code extended from 72 hours to 21 days ...................................................................... 104 Trade Union Bill published ............................................................................................................................... 105 Night workers need fair rights to work life balance........................................................................................... 105 Modern Slavery Act: Annual statement requirement confirmed by consultation response............................... 106 ONS statistics reveal increase in average pay................................................................................................. 106 One in five employers to give basic pay increase of 3% or above ................................................................... 107 Average employee bonus payments down year on year.................................................................................. 108 The Queen’s Awards for Enterprise ................................................................................................................. 108 UK pay rises surge ahead in Western Europe in 2015 .................................................................................... 109 Is the ideal employee available 24 hours a day? ............................................................................................. 109 New measures to protect UK workers.............................................................................................................. 110 Campaign to tackle illegal working in construction industry ............................................................................. 111 Modern Slavery statutory guidance.................................................................................................................. 111 Name blind recruitment to address discrimination ........................................................................................... 112 Flexible working and grounds for refusal.......................................................................................................... 112 ONS Annual Survey of Hours and Earnings 2015 Provisional Results ............................................................ 113 Payroll mistakes cost FTSE100 businesses up to £30m.................................................................................. 113 Recruiting and retaining transgender staff ....................................................................................................... 114 Universal Credit based on income not hours ................................................................................................... 114 BIS publishes response to consultation on labour market exploitation ............................................................ 115 British Sign Language users and Government Services.................................................................................. 116 More than half of UK employees will ask for a pay raise in 2016 ..................................................................... 116 The fit note at five years old is not achieving its aims ...................................................................................... 116 Use of Labour Providers: advice on due diligence ........................................................................................... 117 New DWP postal addresses ............................................................................................................................ 118 Devolving Sunday trading hours ...................................................................................................................... 118 Self-Employment Review recommends equal treatment ................................................................................. 118 Average earnings down by 13.4% since 2007 ................................................................................................. 119 Simplifying tax for small companies ................................................................................................................. 119 Guidance on discriminatory advertising ........................................................................................................... 120 Modern slavery statements .............................................................................................................................. 120 Pregnancy and Maternity Discrimination inquiry .............................................................................................. 121 Holiday Pay ......................................................................................................................................................... 122

Commission is "in" says ruling ......................................................................................................................... 122 Calculating holiday pay .................................................................................................................................... 122 Holiday pay: Lock decision appealed ............................................................................................................... 122 Northern Ireland case considers voluntary overtime in holiday pay calculations.............................................. 123 ACAS update guidance on Holiday Pay calculations ....................................................................................... 124 Carrying over holidays when absent due to sickness ...................................................................................... 124 1.7 million missing out on paid holidays ........................................................................................................... 125 Acas summer holiday guidance ....................................................................................................................... 125 Holiday pay when part time workers increase hours ........................................................................................ 126 Employers must include commission in holiday pay calculation ...................................................................... 126 Zero hours contracts.......................................................................................................................................... 128 Zero hours employment contracts: exclusivity clause ban avoidance .............................................................. 128 Employment Tribunal: Zero hours workers ...................................................................................................... 128 Underemployed versus zero hours contracts................................................................................................... 129 Exclusivity clauses in zero-hour contracts finally banned................................................................................. 129 Exclusivity clauses in zero hour contracts........................................................................................................ 130 Jersey's Royal Court sheds light on zero hours contracts................................................................................ 130 Zero hours contracts – ONS update ................................................................................................................ 131 Guidance on zero hours contracts ................................................................................................................... 132 Zero-hours contract employees as happy as permanent, full-time employees ................................................ 132 Protection for zero-hour contract workers ........................................................................................................ 133 Expenses, Benefits & Reward ........................................................................ 134 Company Cars .................................................................................................................................................... 134 Advisory Fuel Rates for Company Cars from 1 March 2015 ............................................................................ 134 Advisory Fuel Rates for Company Cars from 1 June 2015 .............................................................................. 134 Advisory Fuel Rates for Company Cars from 1 September 2015 .................................................................... 135 VW emissions - HMRC confirm position regarding previously submitted P11Ds ............................................. 135 Company car users can now update their details online .................................................................................. 135 Advisory Fuel Rates for Company Cars from 1 December 2015 ..................................................................... 136 Advisory Fuel Rates for Company Cars from 1 March 2016 ............................................................................ 136 General Expenses, Benefits & Reward News................................................................................................... 138 Delay on introduction of Trivial Benefit Exemption........................................................................................... 138 End of year expenses and benefits forms ........................................................................................................ 138 Annual NHS surcharge is treated as taxable earnings..................................................................................... 138 No P11D to submit - online tool now available................................................................................................. 138 End of year expenses and benefits.................................................................................................................. 139 Amendments to 2014-15 P11D and P11D guide ............................................................................................. 139 Deadlines for expenses and benefits returns ................................................................................................... 140 Approved professional organisations and learned societies ............................................................................ 140 Employment and Payroll Group: salary sacrifice and expenses ...................................................................... 140 The deadline for submission of completed P11Ds has now passed ................................................................ 141 Draft legislation: review of employee benefits and expenses........................................................................... 141 Tax exemption for travel expenses of members of local authorities................................................................. 142 Five year rail fares deal will save commuter costs ........................................................................................... 142 Expenses exemption to replace dispensations from 6 April 2016 .................................................................... 143 490 Employee travel - tax and NICs guide for employers ................................................................................ 144 Travel and subsistence framework discussion paper....................................................................................... 144 Payrolling online service now open for registration .......................................................................................... 144 CIPP survey – HMT Travel and Subsistence: discussion paper ...................................................................... 145 Scale rate expenses payments for employee travelling outside the UK........................................................... 146 CIPP response to call for evidence on tips, gratuities, cover and service charges .......................................... 146 Payrolling Benefits in Kind – guidance amended ............................................................................................. 147 Approved professional organisations and learned societies ............................................................................ 148 The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2015.................................................... 148 Government to gather evidence on salary sacrifice ......................................................................................... 148 Trivial benefit exemption will come into force from 6 April 2016....................................................................... 148 Employment Intermediaries and tax relief for travel and subsistence .............................................................. 149 Employer provided living accommodation – call for evidence .......................................................................... 149 CIPP response to the HMT Travel and Subsistence: discussion paper ........................................................... 150 HM Treasury gathers evidence on the use of salary sacrifice and flexible benefit arrangements .................... 151 CIPP survey on employer provided living accommodation .............................................................................. 151 Regulations laid for employee benefits and expenses simplification measures ............................................... 152 CIPP response to consultation on employer provided living accommodation .................................................. 152 Payrolling Benefits in Kind guidance ................................................................................................................ 153 Bespoke scale rates and transitional arrangements ........................................................................................ 153 Payrolling Benefits - PBiK portal ...................................................................................................................... 154 Beneficial loan arrangements - official rate of interest for 2016-17 .................................................................. 155 Draft guidance for tax exemption for trivial benefits in kind .............................................................................. 155 Salary sacrifice guidance ................................................................................................................................. 155 Fewer than half of nurseries can implement free childcare boost .................................................................... 155 No return of Class 1A National Insurance contributions................................................................................... 156 Salary Sacrifice schemes can be discontinued during maternity leave ............................................................ 156

CIPP Policy News Journal

25/04/2016, Page 6 of 453

Preventing liability to charge being removed from certain taxable benefits in kind .......................................... 157 There is nothing trivial about Benefits in Kind .................................................................................................. 158 Tick-Tock time is running out to register to use HMRC Payrolling Benefits in Kind online service................... 158 Tax-Free Childcare ............................................................................................................................................. 159 Tax-free childcare - Childcare Payments (Eligibility) Regulations and draft Childcare Payments Regulations 2015................................................................................................................................................................. 159 Tax Free Childcare (TFC) Scheme set to be launched in early 2017. ............................................................. 159 Key points for parents about Tax Free Childcare............................................................................................. 160 Employer-Supported Childcare and Tax-Free Childcare.................................................................................. 160 Government News ........................................................................................... 162 Budget 2015 ........................................................................................................................................................ 162 CIPP summary of Budget 2015........................................................................................................................ 162 Summer Budget 2015 ......................................................................................................................................... 165 Personal Allowance ......................................................................................................................................... 166 Higher rate threshold........................................................................................................................................ 166 National Living Wage ....................................................................................................................................... 166 National Insurance contributions...................................................................................................................... 167 Apprenticeships ............................................................................................................................................... 167 Student Loans.................................................................................................................................................. 167 Public sector pay.............................................................................................................................................. 167 Non-dom status................................................................................................................................................ 167 Annual Allowance ............................................................................................................................................ 168 Pensions tax relief consultation........................................................................................................................ 168 Vehicle Excise Duty ......................................................................................................................................... 168 Welfare reforms ............................................................................................................................................... 169 Tax avoidance, evasion and aggressive tax planning ...................................................................................... 169 Reforming dividend tax .................................................................................................................................... 169 Inheritance Tax ................................................................................................................................................ 169 Annual investment allowance........................................................................................................................... 169 Spending Review and Autumn Statement 2015 ............................................................................................... 169 CIPP summary of the Spending Review and Autumn Statement 2015............................................................ 169 Tax rates and thresholds.................................................................................................................................. 170 Student Loans.................................................................................................................................................. 170 Welsh devolution of income tax ....................................................................................................................... 171 Tax administration and simplification ............................................................................................................... 171 Employment intermediaries and tax relief for travel and subsistence .............................................................. 172 Tax avoidance and evasion ............................................................................................................................. 172 Childcare.......................................................................................................................................................... 172 Apprentices ...................................................................................................................................................... 172 Automatic Enrolment........................................................................................................................................ 173 Support for pensioners..................................................................................................................................... 173 Other areas of interest ..................................................................................................................................... 173 CIPP summary of Budget 2016........................................................................................................................ 175 Tax rates and thresholds.................................................................................................................................. 176 Apprenticeships ............................................................................................................................................... 176 Expenses and benefits..................................................................................................................................... 176 Fuel Duty.......................................................................................................................................................... 176 Insurance premium tax..................................................................................................................................... 177 National Minimum Wage/National Living Wage ............................................................................................... 177 Pension reforms............................................................................................................................................... 177 Salary sacrifice................................................................................................................................................. 178 Shared Parental Leave .................................................................................................................................... 178 Tax administration and simplification ............................................................................................................... 178 Tax avoidance and evasion ............................................................................................................................. 179 Tax-Free Childcare .......................................................................................................................................... 179 Termination Payments ..................................................................................................................................... 180 Other areas of interest........................................................................................................................................ 181 Addressing imbalances in the tax system ........................................................................................................ 181 Alcohol and tobacco......................................................................................................................................... 181 Capital gains tax .............................................................................................................................................. 181 Corporation tax ................................................................................................................................................ 182 Education & Skills ............................................................................................................................................ 182 Employment and earnings ............................................................................................................................... 183 Small businesses ............................................................................................................................................. 183 Sugar levy ........................................................................................................................................................ 184 General Government News ................................................................................................................................ 185 Conservative manifesto pledges ...................................................................................................................... 185 David Gauke continues to oversee UK tax system .......................................................................................... 186 Queen’s Speech confirms new tax legislation.................................................................................................. 186 HM Government appointments ........................................................................................................................ 187 Government departments face further cuts...................................................................................................... 187 CIPP Post General Election webcast............................................................................................................... 187

CIPP Policy News Journal

25/04/2016, Page 7 of 453