Common use of PAYE Clause in Contracts

PAYE. The Pay As You Earn (PAYE) system is a method of paying income tax and national insurance contributions. Employers deduct, and pass to HMRC, tax and national insurance contributions from their employees’ wages or occupational pension, before the wages or pensions are paid. Self-Assessment – Self-Assessment is a system of collecting taxes from those who do not contribute through PAYE, or who earn additional income apart from their main employment. Taxpayers self-assess their tax liability, and complete a tax return detailing the taxes due to HMRC and any reliefs that may apply to them. Welsh Address Flag Status Whether or not an individual is a Welsh taxpayer is decided by place of residence. Where it holds a Welsh address for an individual, HMRC therefore electronically marks (Welsh Address Flag) that record as Welsh - the mark/flag being removed or added if the individual moves into or out of Wales. If present and the individual is in employment, the mark/flag enables HMRC IT systems to automatically issue a PAYE ‘C Code’ letting the employer know that the employee is a Welsh taxpayer, so income tax should be deducted from earnings using the rates and thresholds set by the Senedd. SPI The Survey of Personal Incomes (SPI) is a set of income tax data, produced annually by HMRC from the information it holds on a large sample group of UK individuals. The SPI is used assess the potential impact of proposed changes to tax rates and thresholds in order to inform Ministerial decisions on tax policy. It is also used to provide summary information for the National Accounts that are prepared by the Office for National Statistics, in addition to providing information to Members of the Senedd, other Government Departments, companies, organisations and individuals. Public Use Tape income tax data for CY(-2) The Public Use Tape is an anonymised dataset based on the SPI, amended to ensure taxpayer confidentiality. HMRC makes the Public Use Tape publicly available to enable statistical research by organisations and individuals outside of HMRC. The SPI and therefore the Public Use Tape, are always drawn from the latest year for which HMRC has a full set of income tax data – in any given year this will always be the data from two tax years earlier (CY-2). This is due to the timeframe in which HMRC receives information from taxpayers (e.g. self-employed individuals do not have to make return of their income for a year until January 31st of the following year). RTI Real Time Information (RTI) is the system through which employers send employee payroll information to HMRC at the same time as the employee is paid, usually monthly, rather than at the end of the tax year. Name of publication HMRC Annual Report into Welsh Rates of Income Tax Welsh Rates of Income Tax Outturn Statistics Monthly RTI data Public Use Tape Annual Business Intelligence Report Compliance Assessment and Plan Welsh extract of Strategic Picture of Risk Product/ pulication covers Reports on HMRC activity relating to: 1. Identification and assurance 2. Compliance 3. Collecting and accounting for Welsh Rates of Income Tax 4. Data for Welsh Rates of Income Tax rate setting and forecasting 5. Customer Service and Support 6. Recharging of HMRC costs • Growth between CY(- 3) and CY(-2) • Number of Income Tax payers by type • Amount of Income Tax paid by type • Number of taxpayers for NSND income bands • Number of taxpayers for NSND income bands – year on year change • Tax band thresholds: Welsh and Rest of UK Income Tax systems for NSND income • Tax band rates: Welsh and Rest of UK Income Tax systems for NSND income • Background and commentary on statistics Monthly provision of previous month’s liabilities synchronised to publication of monthly UK Income Tax receipts data. Anonymised Income Tax data from CY(-2) Income Tax liabilities by band and by marginal rate, Welsh and non- Welsh Income Tax payers Metrics detail: • Customer contact by telephone, • complaints handled, • web hits HMRC’s approach to enforcement and compliance will be applied across all income tax collection, including WRIT. Annual report on the outcome of compliance activity once it has been undertaken. HMRC do not publish this for operational reasons. A summary is included in the Annual Report. A subset of a UK-wide exercise to establish overall risk to liabilities, focussing on compliance with Welsh Rates of Income Tax. This extract is provided to Welsh Government. HMRC do not publish this for operational reasons. Frequency Annually in September Annually in July Monthly to Welsh Government Agreed annually in April Annex to Annual Report Annually in July Annually in August HMRC/WG WRIT SLA ANNEX B: Operation of Welsh Rates of Income Tax Rechargeable Costs Framework Background and Purpose

PAYE. The Pay As You Earn (PAYE) system is a method of paying income tax and national insurance contributions. Employers deduct, and pass to HMRC, tax and national insurance contributions from their employees’ wages or occupational pension, before the wages or pensions are paid. Self-Assessment – Self-Assessment is a system of collecting taxes from those who do not contribute through PAYE, or who earn additional income apart from their main employment. Taxpayers self-assess their tax liability, and complete a tax return detailing the taxes due to HMRC and any reliefs that may apply to them. Welsh Address Flag Status Whether or not an individual is a Welsh taxpayer is decided by place of residence. Where it holds a Welsh address for an individual, HMRC therefore electronically marks (Welsh Address Flag) that record as Welsh - the markxxxx/flag being removed or added if the individual moves into or out of Wales. If present and the individual is in employment, the markxxxx/flag enables HMRC IT systems to automatically issue a PAYE ‘C Code’ letting the employer know that the employee is a Welsh taxpayer, so income tax should be deducted from earnings using the rates and thresholds set by the Senedd. SPI The Survey of Personal Incomes (SPI) is a set of income tax data, produced annually by HMRC from the information it holds on a large sample group of UK individuals. The SPI is used assess the potential impact of proposed changes to tax rates and thresholds in order to inform Ministerial decisions on tax policy. It is also used to provide summary information for the National Accounts that are prepared by the Office for National Statistics, in addition to providing provide information to Members of the Senedd, other Government Departmentsgovernment departments, companies, organisations and individuals. Public Use Tape income tax data for CY(-2) The Public Use Tape is an anonymised dataset based on the SPI, amended to ensure taxpayer confidentiality. HMRC makes the Public Use Tape publicly available to enable statistical research by organisations and individuals outside of HMRC. The SPI and therefore the Public Use Tape, are always drawn from the latest year for which HMRC has a full set of income tax data – in any given year this will always be the data from two tax years earlier (CY-2). This is due to the timeframe in which HMRC receives information from taxpayers (e.g. self-self- employed individuals do not have to make return of their income for a year until January 31st of the following year). RTI Real Time Information (RTI) is the system through which employers send employee payroll information to HMRC at the same time as the employee is paid, usually monthly, rather than at the end of the tax year. Name of publication Publications HMRC Annual Report into Welsh Rates of Income Tax Welsh Rates of Income Tax Outturn Statistics Monthly RTI data Public Use Tape Annual Business Intelligence Report Compliance Assessment and Plan Welsh extract of Strategic Picture of Risk Product/ pulication covers Reports on HMRC activity relating to: 1. Identification and assurance 2. Compliance 3. Collecting and accounting for Welsh Rates of Income Tax 4. Data for Welsh Rates of Income Tax rate setting and forecasting 5. Customer Service and Support 6. Recharging of HMRC costs • Growth between CY(- 3) and CY(-2) • Number of Income Tax payers by type • Amount of Income Tax paid by type • Number of taxpayers for NSND income bands • Number of taxpayers for NSND income bands – year on year change • Tax band thresholds: Welsh and Rest of UK Income Tax systems for NSND income • Tax band rates: Welsh and Rest of UK Income Tax systems for NSND income • Background and commentary on statistics Monthly provision of previous month’s liabilities synchronised to publication of monthly UK Income Tax receipts data. Anonymised Income Tax data from CY(-2) Income Tax liabilities by band and by marginal rate, Welsh and non- Welsh Income Tax payers Metrics detail: • Customer contact by telephone, • complaints handled, • web hits HMRC’s approach to enforcement and compliance will be applied across all income tax collection, including WRIT. Annual report on the outcome of compliance activity once it has been undertaken. HMRC do not publish this for operational reasons. A summary is included in the Annual Report. A subset of a UK-wide exercise to establish overall risk to liabilities, focussing on compliance with Welsh Rates of Income Tax. This extract is provided to Welsh Government. HMRC do not publish this for operational reasons. Frequency Annually in September Annually in July Monthly to Welsh Government Agreed annually in April Annex to Annual Report Annually in July Annually in August HMRC/WG WRIT SLA ANNEX B: Operation of Welsh Rates of Income Tax Rechargeable Costs Framework Background and Purpose:

PAYE. The Pay As You Earn (PAYE) system is a method of paying income tax and national insurance contributions. Employers deduct, and pass to HMRC, tax and national insurance contributions from their employees’ wages or occupational pension, before the wages or pensions are paid. Self-Assessment – Self-Assessment is a system of collecting taxes from those who do not contribute through PAYE, or who earn additional income apart from their main employment. Taxpayers self-assess their tax liability, and complete a tax return detailing the taxes due to HMRC and any reliefs that may apply to them. Welsh Address Flag Status Whether or not an individual is a Welsh taxpayer is decided by place of residence. Where it holds a Welsh address for an individual, HMRC therefore electronically marks (Welsh Address Flag) that record as Welsh - the markxxxx/flag being removed or added if the individual moves into or out of Wales. If present and the individual is in employment, the markxxxx/flag enables HMRC IT systems to automatically issue a PAYE ‘C Code’ letting the employer know that the employee is a Welsh taxpayer, so income tax should be deducted from earnings using the rates and thresholds set by the Senedd. SPI The Survey of Personal Incomes (SPI) is a set of income tax data, produced annually by HMRC from the information it holds on a large sample group of UK individuals. The SPI is used assess the potential impact of proposed changes to tax rates and thresholds in order to inform Ministerial decisions on tax policy. It is also used to provide summary information for the National Accounts that are prepared by the Office for National Statistics, in addition to providing provide information to Members of the Senedd, other Government Departmentsgovernment departments, companies, organisations and individuals. Public Use Tape income tax data for CY(-2) The Public Use Tape is an anonymised dataset based on the SPI, amended to ensure taxpayer confidentiality. HMRC makes the Public Use Tape publicly available to enable statistical research by organisations and individuals outside of HMRC. The SPI and therefore the Public Use Tape, are always drawn from the latest year for which HMRC has a full set of income tax data – in any given year this will always be the data from two tax years earlier (CY-2). This is due to the timeframe in which HMRC receives information from taxpayers (e.g. self-self- employed individuals do not have to make return of their income for a year until January 31st of the following year). RTI Real Time Information (RTI) is the system through which employers send employee payroll information to HMRC at the same time as the employee is paid, usually monthly, rather than at the end of the tax year. Name of publication HMRC Annual Report into Welsh Rates of Income Tax Welsh Rates of Income Tax Outturn Statistics Monthly RTI data Public Use Tape Annual Business Intelligence Report Compliance Assessment and Plan Welsh extract of Strategic Picture of Risk Product/ pulication covers Reports on HMRC activity relating to: 1. Identification and assurance 2. Compliance 3. Collecting and accounting for Welsh Rates of Income Tax 4. Data for Welsh Rates of Income Tax rate setting and forecasting 5. Customer Service and Support 6. Recharging of HMRC costs • Growth between CY(- 3) and CY(-2) • Number of Income Tax payers by type • Amount of Income Tax paid by type • Number of taxpayers for NSND income bands • Number of taxpayers for NSND income bands – year on year change • Tax band thresholds: Welsh and Rest of UK Income Tax systems for NSND income • Tax band rates: Welsh and Rest of UK Income Tax systems for NSND income • Background and commentary on statistics Monthly provision of previous month’s liabilities synchronised to publication of monthly UK Income Tax receipts data. Anonymised Income Tax data from CY(-2) Income Tax liabilities by band and by marginal rate, Welsh and non- Welsh Income Tax payers Metrics detail: • Customer contact by telephone, • complaints handled, • web hits HMRC’s approach to enforcement and compliance will be applied across all income tax collection, including WRIT. Annual report on the outcome of compliance activity once it has been undertaken. HMRC do not publish this for operational reasons. A summary is included in the Annual Report. A subset of a UK-wide exercise to establish overall risk to liabilities, focussing on compliance with Welsh Rates of Income Tax. This extract is provided to Welsh Government. HMRC do not publish this for operational reasons. Frequency Annually in September Annually in July Monthly to Welsh Government Agreed annually in April Annex to Annual Report Annually in July Annually in August HMRC/WG WRIT SLA ANNEX B: Operation of Welsh Rates of Income Tax Rechargeable Costs Framework Framework‌ Background and Purposepurpose

PAYE. The Pay As You Earn (PAYE) system is a method of paying income tax and national insurance contributions. Employers deduct, and pass to HMRC, tax and national insurance contributions from their employees’ wages or occupational pension, before the wages or pensions are paid. Self-Assessment – Self-Assessment is a system of collecting taxes from those who do not contribute through PAYE, or who earn additional income apart from their main employment. Taxpayers self-assess their tax liability, and complete a tax return detailing the taxes due to HMRC and any reliefs that may apply to them. Welsh Address Flag Status Whether or not an individual is a Welsh taxpayer is decided by place of residence. Where it holds a Welsh address for an individual, HMRC therefore electronically marks (Welsh Address Flag) that record as Welsh - the mark/flag being removed or added if the individual moves into or out of Wales. If present and the individual is in employment, the mark/flag enables HMRC IT systems to automatically issue a PAYE ‘C Code’ letting the employer know that the employee is a Welsh taxpayer, so income tax should be deducted from earnings using the rates and thresholds set by the SeneddNational Assembly for Wales. SPI The Survey of Personal Incomes (SPI) is a set of income tax data, produced annually by HMRC from the information it holds on a large sample group of UK individuals. The SPI is used assess the potential impact of proposed changes to tax rates and thresholds in order to inform Ministerial decisions on tax policy. It is also used to provide summary information for the National Accounts that are prepared by the Office for National Statistics, in addition to providing provide information to Members of the SeneddNational Assembly for Wales, other Government Departments, companies, organisations and individuals. Public Use Tape income tax data for CY(-2) The Public Use Tape is an anonymised dataset based on a version of the SPI, amended to ensure taxpayer confidentiality. , that HMRC makes the Public Use Tape publicly publically available to enable statistical research by organisations and individuals outside of HMRC. The SPI and therefore the Public Use Tape, are always drawn from the latest year for which HMRC has a full set of income tax data – in any given year this will always be the data from two tax years earlier (CY-2). This is due to the timeframe in which HMRC receives information from taxpayers (e.g. self-employed individuals do not have to make return of their income for a year until January 31st of the following year). RTI Real Time Information (RTI) is the system through which employers send employee payroll information to HMRC at the same time as the employee is paid, usually monthly, rather than at the end of the tax year. Name of publication HMRC Annual Report into Welsh Rates of Income Tax Welsh Rates of Income Tax Outturn Statistics Monthly RTI data Public Use Tape Annual Business Intelligence Report Compliance Assessment and Plan Welsh extract of Strategic Picture of Risk Product/ pulication covers Reports on HMRC activity relating to: 1. Identification and assurance 2. Compliance 3. Collecting and accounting for Welsh Rates of Income Tax 4. Data for Welsh Rates of Income Tax rate setting and forecasting 5. Customer Service and Support 6. Recharging of HMRC costs • Growth between CY(- 3) and CY(-2) • Number of Income Tax payers by type • Amount of Income Tax paid by type • Number of taxpayers for NSND income bands • Number of taxpayers for NSND income bands – year on year change • Tax band thresholds: Welsh and Rest of UK Income Tax systems for NSND income • Tax band rates: Welsh and Rest of UK Income Tax systems for NSND income • Background and commentary on statistics Monthly provision of previous month’s liabilities synchronised to publication of monthly UK Income Tax receipts data. Anonymised Income Tax data from CY(-2) Income Tax liabilities by band and by marginal rate, Welsh and non- Welsh Income Tax payers Metrics detail: • Customer contact by telephone, • complaints handled, • web hits HMRC’s approach to enforcement and compliance will be applied across all income tax collection, including WRIT. Annual report on the outcome of compliance activity once it has been undertaken. HMRC do not publish this for operational reasons. A summary is included in the Annual Report. A subset of a UK-wide exercise to establish overall risk to liabilities, focussing on compliance with Welsh Rates of Income Tax. This extract is provided to Welsh Government. HMRC do not publish this for operational reasons. Frequency Annually in September Annually in July Monthly to Welsh Government Agreed annually in April Annex to Annual Report Annually in July Annually in August HMRC/WG WRIT SLA ANNEX B: Operation of Welsh Rates of Income Tax Rechargeable Costs Framework Background and Purpose.