PSTAX Employment Taxes Training Programme

September 2018 – March 2019

 

Following feedback from our clients, we are delighted to announce the roll-out of our comprehensive Employment Taxes Training Programme for 2018/19. In view of the diverse array of subjects and disciplines that fall within the ambit of Employment Taxes, we are offering nine different half-day courses at various locations on topics where we believe there are training requirements within public sector bodies. This is an extensive offering that we believe is unrivalled by any other provider in terms of its relevance to public bodies, breadth of subject matter, quality of training and price.

We have set out a description of the courses we will be running for your consideration, as well as details of the dates and venues where we will be running them. In order for each course to be viable we will require a minimum of six bookings.

 

Basic Introduction to Employment Taxes

This half-day course covers the fundamentals of Employment Taxation to help public bodies understand the basic principles in this area and to deal with the relevant issues arising.

The course considers in detail the following essential topics: the general charging provisions, PAYE regulations and Real Time Information. It will also cover how to distinguish taxable earnings from non-taxable payments; the definition of earnings; the application of ‘rule 1’ and ‘rule 2’ in relation to when the charge to tax arises; liability to tax and whether this belongs to the employer or employee.

All the areas will be covered with case studies, case law references and HMRC guidance, where appropriate.

We recommend this training course to all PSTAX clients and contacts. It will be highly relevant for staff with responsibility for all taxes and also for staff in HR/Payroll, as part of their essential Continuation of Professional Development.

Where this course is offered, it will be a morning session with the Basic Introduction to National Insurance Contributions course offered in the afternoon on the same day. Therefore, whilst this is a standalone course, delegates may be interested in booking both courses.

 

Basic Introduction to National Insurance Contributions (NIC)

This half-day course covers the fundamentals of NIC to help public bodies understand the basic principles in this area and to deal with the relevant issues arising.

Much like the Basic Introduction to Tax, we are offering a half day course on NIC, to highlight and discuss the fundamental principles of National Insurance Contributions including: Class 1, 1A, 1B, Classes 2,3 and 4; the definition of earnings; the contributory principle; aggregation of earnings; and alignment with tax. All the areas will be covered with case studies, case law references and HMRC guidance, where appropriate.

We recommend this training course to all PSTAX clients and contacts. It will be highly relevant for staff with responsibility for all taxes and also for staff in HR/Payroll, as part of their essential Continuation of Professional Development.

Where this course is offered, it will be an afternoon session with the Basic Introduction to Employment Taxes course offered in the morning on the same day. Therefore, whilst this is a standalone course, delegates may be interested in booking both courses.

 

Construction Industry Scheme (CIS)

This half-day course will consider all the main aspects of CIS from the perspective of a public body as a ‘deemed contractor’. This will include a detailed overview of the scheme designed for those involved in its administration, as well as those responsible for engaging and communicating with subcontractors whose work may fall within the definition of the scheme.

It will cover the common CIS compliance issues; in particular what falls within the scope of CIS and the ongoing obligations regarding making payments, deductions and reporting to HMRC. It will also consider cases of difficulty, including disputes over material costs, small payments exemption and payments under PFI projects. This will all be supported by the use of case studies.

We recommend this training course to all PSTAX clients and contacts and particularly for staff with responsibility for administering the Scheme.

 

Expenses and Benefits

By taking both a theoretical and practical approach, this course will be held towards the end of the tax year and will cover the general principles of form P11D completion and consideration of the more complex benefits such as travel and subsistence, living accommodation, relocation, beneficial loans, cars and car fuel. Enhancing practical knowledge, we will also examine the key P11D issues for public sector employers and cover the ‘payrolling’ of benefits, PAYE Settlement Agreements, the ‘making good’ provisions and grossing up. The course will include plenty of practical examples and case studies to inform better understanding in these areas.

We recommend this training course to all PSTAX clients and contacts and particularly for staff in HR/Payroll and Tax. Where this course is offered, it will be a morning session with the Optional Remuneration Arrangements course being offered in the afternoon on the same day. Therefore, whilst this is a standalone course, delegates may be interested in booking both courses.

 

Operational Remuneration Arrangements (OpRA)

For public bodies that complete forms P11D or have salary sacrifice arrangements in place, this course provides an essential update. The Optional Remuneration Arrangements (OpRA) legislation has presented a significant change which requires careful handling to ensure that employer NIC savings are retained for the maximum period and that employers are compliant in this area. The rule changes have shifted attention from certain schemes where the savings are no longer possible to those where savings remain. Our course covers each of the salary sacrifice schemes that are relevant in the public sector, observing how the rule changes impact and reminding delegates about the key compliance aspects. This course will be held towards the end of the tax year with P11D reporting deadlines looming and is designed to support staff with this responsibility.

The course is recommended for HR, Finance and Payroll staff.  Where this course is offered, it will be an afternoon session with the Expenses and Benefits course being offered in the morning on the same day. Therefore, whilst this is a standalone course, delegates may be interested in booking both courses.

 

Employment Status

This course considers the fundamental principles of employment status and how these have evolved over decades of tax and employment case law to form the basis for making decisions on whether workers may be paid gross or under deduction of PAYE and NIC.

We will consider the full spectrum of ‘payee’ from office holders to managed service companies and everything in the middle – covering an employer’s tax and NIC related obligations when making payments to each specific entity.

Through the use of case studies, we will aim to achieve a deeper understanding of the tests of employment status, such as personal service/substitution, control, financial risk and mutuality of obligation and the relevance of each of these tests in specific situations.

We will also consider the ongoing review by Government to seek to address the challenges faced by the changes in modern working practices and the apparent mismatch between status from an employment law and tax perspective and what may need to be done to address that.

We recommend this training course for those involved in engaging workers, namely HR and Procurement, as well as those responsible for making decisions about status within the organisation.

Where this course is offered, it will be a morning session with the IR35 course offered in the afternoon on the same day. Therefore, whilst this is a standalone course, delegates may be interested in booking both courses.

 

IR35

In April 2017 a fundamental change was made to the rules regarding the engagement of certain intermediaries by public bodies on ‘off-payroll’ terms. These rules – known as ‘IR35’ – have imposed an obligation on public bodies to assess the employment status of those providing services via personal

service companies, partnerships and other intermediaries whether the intermediary body is paid directly or via a third party, such as an agency. Where the engagement is deemed to be ‘in scope’ of IR35, PAYE/NIC and the Apprenticeship Levy must be deducted and accounted for by the body paying the intermediary.

Since the time that the rules were changed we have been inundated with queries regarding the issues faced in determining when and how the rules should be applied by public bodies. Therefore, this course aims to provide clarity on a number of key issues including:

  • Why were the IR35 rules changed and what is their purpose?
  • What is an intermediary body for the purposes of the legislation?
  • When does IR35 need to be considered?
  • How should the questions asked in the HMRC online tool ‘Check Employment Status for Tax’ (CEST) be interpreted?
  • What are the rules regarding the use of agencies?
  • What are the commercial considerations to consider in applying the IR35 rules?

We will use a number of case studies based on actual situations we have encountered to inform a better understanding. We recommend this training course to all PSTAX clients and contacts and particularly for staff in Finance, HR, Payroll, Procurement and Tax.

Where this course is offered, it will be an afternoon session with the Employment Status course offered in the morning on the same day. Therefore, whilst this is a standalone course, delegates may be interested in booking  both courses.

 

Emergency Vehicles

As clients and contacts in the emergency services sector will be aware, there have been a significant number of developments regarding the tax treatment of vehicles in this sector following changes to the legislation regarding the use of assets in April 2017. In view of the impact these changes presented for the individuals concerned, HMRC issued an announcement in April 2018 advising that the changes would be deferred until April 2020. At the same time, it was announced that the terms of Section 248A ITEPA 2003, which gives a total exemption from a tax charge where certain conditions are met, is to be

extended to permit ordinary commuting. As part of the transitional arrangements announced, HMRC issued a ‘clarification’ regarding the basis on which Class 1A National Insurance Contributions should be calculated, which was contrary to their previous advice.

This course takes delegates through all these developments to help them review the arrangements in their own organisation so they can ensure that they are fully compliant with the updated rules. In addition to the main issues set out above, it will also deal with related areas of difficulty including mileage/fuel payments and fuel costs, which have all been areas where HMRC has clarified its position.

We recommend this training course for those involved in calculating and reporting the benefit of vehicles, as well as those in HR responsible for communication with affected officers/employees.

 

Termination Payments

Important changes were made to the tax and National Insurance treatment of certain termination payments which came into effect on 6 April 2018. Of particular importance are the changes to the rules concerning Payments in Lieu of Notice (PILONs) which now require such payments to be subject to tax/NIC in full regardless of whether or not they arise from a contractual entitlement. Whilst the concept behind the new rules appears to be straightforward, the details on how the new rules should be applied in practice certainly appear to be anything but that. HMRC has updated its Employment Income Manual with several additional pages on the changes which illustrate their complexity. The new rules have  introduced the concept of ‘Post Employment Notice Pay’ (PENP), which is a notional calculation based on a specific formula to determine the amount subject to tax/NIC and understanding this calculation is crucial in applying the new rules.

We are pleased to offer a half-day training course on these important rule changes. The objectives of the course will be to provide clarity on the new rules in addition to answering questions such as:

  • What exactly is Post Employment Notice Pay (PENP) and how is it calculated?
  • Can the new rules be avoided by labelling a termination payment in a different way?
  • Redundancy and other payments on termination – can they still be paid free of tax/NIC?
  • What are the rules if an employment is terminated when an employee is on long-terms sick leave?
  • What if someone leaves by mutual consent with no pay off – do the rules still apply?

The course will set out the legislative changes and supporting guidance and will use a number of case studies to cover different scenarios that could arise and where the new rules would apply. The course will also cover certain other changes from April 2018 regarding injury and disability payments, as well as an overview of the closer alignment of the tax/NIC rules that came into effect from 6 April 2019.

We recommend this training course to all PSTAX clients and contacts and particularly for staff in HR/Payroll, Legal and Tax that are responsible for formulating, agreeing and administering termination settlements and redundancy payments within the organisation.

 

Course Venue Date AM/PM
Termination Payments Woodside, Kenilworth 11/09/2018 AM
Termination Payments Newark & Sherwood 12/09/2018 AM
Termination Payments RAF, London 18/09/2018 AM
IR35 Woodside, Kenilworth 25/09/2018 PM
Employment Status Woodside, Kenilworth 25/09/2018 AM
CIS RAF, London 09/10/2018 AM
IR35 RAF, London 10/10/2018 PM
Employment Status RAF, London 10/10/2018 AM
Employment Status Newark & Sherwood 16/10/2018 AM
IR35 Newark & Sherwood 16/10/2018 PM
Emergency Vehicles RAF, London 18/10/2018 AM
Basic Introduction to Tax North Yorkshire CC 24/10/2018 AM
Basic Introduction to NIC North Yorkshire CC 24/10/2018 PM
Emergency Vehicles Newark & Sherwood 20/11/2018 AM
Basic Introduction to Tax Mid Devon DC 22/11/2018 AM
Basic Introduction to NIC Mid Devon DC 22/11/2018 PM
IR35 Greater Manchester Police 27/11/2018 PM
Employment Status Greater Manchester Police 27/11/2018 AM
CIS Greater Manchester Police 06/12/2018 AM
Emergency Vehicles Greater Manchester Police 06/12/2018 PM
Basic Introduction to Tax Greater Manchester Police 17/01/2019 AM
Basic Introduction to NIC Greater Manchester Police 17/01/2019 PM
Basic Introduction to Tax RAF, London 22/01/2019 AM
Basic Introduction to NIC RAF, London 22/01/2019 PM
Expenses and Benefits Woodside, Kenilworth 05/02/2019 AM
OpRA Woodside, Kenilworth 05/02/2019 PM
Expenses and Benefits Mid Devon DC 12/02/2019 AM
OpRA Mid Devon DC 12/02/2019 PM
Expenses and Benefits RAF, London 13/02/2019 AM
OpRA RAF, London 13/02/2019 PM
Expenses and Benefits Greater Manchester Police 14/02/2019 AM
OpRA Greater Manchester Police 14/02/2019 PM
IR35 Mid Devon DC 27/02/2019 PM
Employment Status Mid Devon DC 27/02/2019 AM
IR35 North Yorkshire CC 19/03/2019 PM
Employment Status North Yorkshire CC 19/03/2019 AM
Termination Payments North Yorkshire CC 20/03/2019 AM
Basic Introduction to Tax Woodside, Kenilworth 21/03/2019 AM
Basic Introduction to NIC Woodside, Kenilworth 21/03/2019 PM
Termination Payments Mid Devon DC 26/03/2019 AM
Termination Payments RAF, London 28/03/2019 AM
Basic Introduction to Tax Newark & Sherwood 03/04/2019 AM
Basic Introduction to NIC Newark & Sherwood 03/04/2019 PM

 

Newark and Sherwood County Council

Castle House, Great North Road, Newark, Notts, NG24 1BY

 

Woodside Hotel

Glasshouse Lane, Kenilworth CV8 2AL

 

RAF Club

The RAF Club, 128 Piccadilly, London W1J 7PY

 

North Yorkshire County Council

County Hall, Racecourse Ln, Northallerton DL7 8AD

 

Greater Manchester Police

Greater Manchester Police Headquarters, Central Park, Northampton Road, Manchester, M40 5BP

 

Mid Devon District Council

Phoenix House Phoenix Lane, Tiverton EX16 6PP

 

The morning training sessions will start at 10.00 with refreshments commencing at 09.30, finishing at 12.45/13.00 for lunch.  The afternoon training sessions will begin after lunch, at 13.30, and end at around 16.30. All delegates should be at the venue for 12.45 to enjoy lunch.

The cost of each half day course is £265 per delegate including the cost of lunch and refreshments PLEASE NOTE this is reduced to £225 per delegate for PSTAX Club members. Organisations booking three or more places will receive a 10% discount.

You can book by sending an email to emily.collier@pstax.co.uk

Please note that booking must be made at least a week before the training course you would like to attend. 

If you have dietary requirements or you book and subsequently find that you cannot attend, please contact Emily by e-mail at emily.collier@pstax.co.uk or on 07927 557089.