confidence in accurate penalties being issued. This has since been supported by a CIPP survey which at the time of writing had received over 160 responses. The majority declared they did not have confidence and felt the penalty regime in respect of RTI should be deferred until least April 2015. HMRC confirmed their guidance in respect of end of year etc had been updated and this has been reported via News On Line.
Mandatory SCON HMRC then provided an update around the mandatory requirement from April 2014 to report the scheme contracted out number (SCON) for contracted-out pension schemes. As members will be aware via News On Line, HMRC have listened and provided software developers with a temporary SCON where the employer has really tried to obtain the SCON without success.
Please seek clarification from your pension provider if you have been unable to locate the SCON for any employees affected.
CIPP
The real time information submission validation will be linking to national insurance table letters to determine whether a SCON should be present.
Intermediaries And, finally, there was an update in respect of offshore and onshore intermediaries. The main point is that HMRC are not looking to interfere with existing legislation but to improve compliance in some areas where tax evasion/avoidance is rife.
PP
So what else? The team continue to write topical articles for external partners and produce webinars on a range of topics. There are still issues surrounding the generic notices issued by HMRC that the team are investigating on behalf of members with HMRC. Three surveys were running at the time of going to print:
l the first has already been mentioned – real time information and penalties l the second is whether the profession believes the national minimum wage should be increased in October 2014 l and whether it is time for part 3 of the form P45 to go. The full results of these surveys will be shared via the CIPP website and in the next issue of PayrollProfessional.
Please do remember to contribute to the online forums, especially the Policy Think
Tank forum as the team looks to expand the services offered; more on this in a future edition!
If you have any concerns please do contact the team via
policy@cipp.org.uk.
COURSE OF THE MONTH
Pensions for Payroll, Automatic Enrolment and Salary Sacrifice
The course of the month is the Pensions for Payroll, Automatic Enrolment and Salary Sacrifice where all qualifying employees will need to be automatically enrolled into a pension scheme by their employer.
Many employers believe they have plenty of time to fulfil their obligations as their staging date is not for another twelve months or so – many employers are wrong. This course is aimed at anyone responsible for, or connected with, pensions within their organisation and anyone in the HR, finance or payroll environment that requires an understanding of pension schemes, the statutory requirements surrounding automatic enrolment and the benefits of considering salary sacrifice to reduce the employer costs of automatic enrolment. This illuminating course explains the legal and payroll related implications of the planning and introduction of automatic
8 PayrollProfessional
enrolment for pensions and salary sacrifice arrangements. It examines, with examples, why an arrangement may or may not be effective or successful. Pension reform will impact all employers throughout the whole of the UK and therefore it is essential that we are all aware of our responsibilities and obligations to ensure we are compliant. There is a lot for organisations to consider, four key elements to help employers prepare for pension reform are as follows: l Knowing your staging date – Every organisation will be given a staging date, when their obligations under pension reform will start. These dates began on 1 October 2012 and are dependent upon the size of the organisation’s PAYE scheme, with the largest employers starting first. l Consider the cost implications of pension reform – Employers need to consider the potential cost implications of pension reform by taking into account all
factors which will assist them to prepare. l Consider what pension scheme and contributions you will offer – Employers will need to examine any existing pension schemes in place to determine whether they will meet the minimum requirements of the legislation. l Managing the cost of pension reform – Starting financial preparation early could help to manage any increased costs, so that employers do not see a spike in pension costs overnight.
In addition to the above many of the common problems employers are currently experiencing which are creating issues and problems will be highlighted. It you attend this course you will come away with a clear picture on when automatic enrolment will affect you, if your existing pension scheme qualifies under the new legislation, what you need to do to make sure that you do comply with the changes and how to communicate the changes and benefits to your employees.
...SEEK CLARIFICATION FROM YOUR PENSION PROVIDER IF YOU HAVE BEEN UNABLE TO LOCATE THE SCON FOR ANY EMPLOYEES AFFECTED
Payroll updates membershipfocus
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