Editorial for Newsletter #370

This week’s newsletter has a maternity slant, with items that look at further European proposals for improving maternity rights and HMRC’s latest guidance on the taxation of benefits provided during maternity and adoption leave.

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In May 2008, in a detailed and controversial document entitled “Statutory maternity leave – salary sacrifice and non-cash benefits”, HMRC provided guidance for employers on their statutory obligation to maintain contractual benefits while employees are on maternity leave. Some of the guidance provided was contentious, not simply because the Department for Business, Enterprise and Regulatory Reform (BERR) used HMRC to explain the employment law aspects of the maternity and adoption leave changes that were introduced in October 2008, matters that are outside of HMRC’s jurisdiction, but because it used tax and social security law definitions to support BERR’s interpretation of the employment law term “remuneration”.

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Earlier in April 2009, the government began to consult on European Commission plans to amend the Pregnant Workers Directive. The UK already satisfies most of the improvements, although there are implications for how early maternity leave can start and the period of compulsory leave after the birth.

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A Tax Information Exchange Agreement (TIEA) and an Arrangement amending the 1955 Double Taxation Agreement (DTA) between the United Kingdom and the Isle of Man, signed in Douglas on 29 September 2008, entered into force on 2 April 2009.

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PAYE Procedures - Additional guidance for pension and annuity payers

In January 2009, HMRC published an online guide for pension and annuity payers, to supplement the information provided in the CWG2 Employer Further Guide to PAYE and NICs. The document has been updated and reissued.

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The Law Clerks Joint Labour Committee has given statutory notice that it has formulated proposals for fixing the statutory minimum rates of remuneration and regulating the statutory conditions of employment of office managers, law clerks/bookkeepers, legal secretaries and office assistants. The last pay increases were agreed in 2007 and came into force on 3 April 2007 and on 3 April 2008.

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Changes to EU Tax Rules Could Create Serious Challenge for Business

Colchester, UK – 21st April 2009 – HMRC will publicise its interpretation of the new changes to EU Services VAT rules tomorrow. The announcement, which coincides with the Budget, could create a serious challenge for UK businesses.

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Budget Changes Won’t Affect Payroll Systems

Payroll systems will not be affected by new changes outlined in the Budget today, the IPP is pleased to announce.

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2009 Budget News Summary

Income tax and National Insurance contributions – April 2009

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Emergency Services Choose ICS Payroll

NHS Payroll Contract with Leading Ambulance Service

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