This TAXguide contains correspondence between ICAEW, the Financial Secretary to the Treasury and HMRC on the statutory residence test and social security in relation to expatriate employees that have been displaced due to the impacts of the coronavirus pandemic. This TAXguide replaces TAXguide 06/21 which predated HMRC’s reply on social security contributions.

In light of upcoming changes to the off-payroll working regime, this guidance from the Tax Faculty outlines how to determine whether a private sector client using contractors through an intermediary is ‘small’.

From April 2020, employers who together with their connected companies have aggregate Class 1 secondary NIC liability of £100,000 or more in the preceding tax year cannot claim employment allowance (EA). EA also becomes de minimis State Aid.

Answers to questions asked at ICAEW Tax Faculty webinar on 7 August 2019

David Heaton provides a comprehensive guide to the major changes to the structure of employment arrangements affecting employment intermediaries that were introduced in 2014 and 2015. Read a summary here, Tax Faculty members can download the full guide.

Clive Fathers, tax partner at Mazars, uses tax data collected in the ICAEW Tax Race over the last 50 years to foreshadow a more digital and sustainable tax landscape.

Writing to the Financial Secretary to the Treasury, ICAEW’s Tax Faculty has called for the Autumn Budget to accelerate work to build a modern tax system. While urging a “manageable pace” of transition, it cautions against implementing tax changes without consultation, such as the new Health and Social Care Levy.

HMRC has confirmed that the normal process for registering as self-employed has been restored. Taxpayers who could not obtain a national insurance number during the pandemic used a workaround and now need to contact HMRC to arrange collection of Class 2 national insurance contributions.

National insurance contributions and dividend tax rates will increase by 1.25 percentage points across the UK from April 2022, with the projected £12bn annual income to be ringfenced to pay for health and social care.

HMRC has confirmed that employment allowance deductions may only be made in periods after the claimant has given notice and offers further clarity on the implications for those who have claimed government COVID-19 support.

ICAEW has identified the need to establish income tax, national insurance and capital gains tax liabilities in a single system as a priority for the Tax Administration Framework Review.

HMRC has published new templates for making claims under the Coronavirus Job Retention Scheme to simplify the process. It is now possible to submit claims using a template within the system for staff without national insurance numbers when grants cover fewer than 100 members of staff.

The government has published the National Insurance Contributions Bill, which legislates reliefs for employers of veterans and those operating in Freeports, as well as for the self-employed isolating due to COVID-19. The Bill will also enable upcoming changes to the DOTAS scheme to apply to national insurance avoidance.

The Tax Faculty's essential Autumn Budget 2021 webinar

Employment tax specialist Kate Upcraft and Tax Faculty technical managers Anita Monteith and Caroline Miskin, explain the complexities of the Coronavirus Job Retention Scheme (CJRS) followed by an update on the latest payroll hot topics.

An introduction to checking your national insurance contributions.

A response dated 5 October 2021 to a consultation published by HMT on 30 September 2021, including ICAEW’s Tax Faculty customary pre-Budget letter to the Financial Secretary to the Treasury. It calls for the acceleration of work to build a modern tax system, while urging a “manageable pace” of transition, it cautions against implementing tax changes without consultation, such as the new Health and Social Care Levy.

In responding to HMRC's call for evidence on timely payment, ICAEW argues that earlier payment of income and corporation tax should not be considered until the economy has recovered and that earlier payment should not be based on in-year estimates without HMRC first demonstrating that they can be a reliable basis for earlier payment.

In responding to HMRC's consultation on the Tax Administration Framework Review ICAEW argues that the starting point of such tax reform should be significant simplification of the underlying tax rules and that HMRC needs to be given the resources and funding to give it the capacity to take on such a major piece of work.

A response dated 5 October 2020 to a consultation published by HMRC on 21 July 2020.

National Insurance Contributions Bill 2021 proposal introducing Class 1 NICs relief for eligible employers on the earnings of eligible employees working in a Freeport tax site from April 2022.

Comprehensive hub linking to government guidance on National Insurance including rates and categories, National Insurance for the self-employed, and UK National Insurance for those working outside the UK.

Current rates for Class 2 and Class 4 National Insurance Contributions.