Archive for February, 2010

This week’s newsletter, other than the regular payroll calendars, consists solely of a detailed article on the new medical statements, or “fit notes” that will be issued by doctors from 6 April 2009. They will have a significant impact on the way employers handle sickness absences and require employers to have a fresh look at the [...]

In January, the Department for Work and Pensions (DWP) confirmed that the replacement medical statement, known as the “Statement of Fitness for Work” and now commonly nicknamed the “fit note” to distinguish its use from the “sick note”, will come into use from 6 April 2010 in England, Scotland and Wales.  It will also be [...]

The problems caused by HMRC issuing duplicate coding notices continue to be an issue and HMRC have published at least two updates to reassure employers and employees.  We have reproduced the latest announcements below. The problem faced by employers wanting to impose new terms and conditions on employees seems to have been solved by Asda, [...]

Two weeks ago we highlighted a coding notice problem involving the issuing by HMRC of multiple and contradictory coding notices.  The problems reached the national press and HMRC has since published two updates on the situation. The first was issued for distribution to employers by HMRC’s Business Customer Unit: “Annual Coding: multiple or incorrect Coding [...]

In a judgement delivered on 11 February 2010, the London Employment Appeal Tribunal (EAT) ruled that, in the case Bateman and Others v Asda Stores Ltd, the employer was entitled to change and impose new pay structures without the express consent of individual employees, based on a clearly expressed term in the staff handbook. In [...]

Alongside the 2009 Pre-Budget Report, the Government announced that it intended to address the problem of potentially exploitative arrangements that are implemented for some temporary workers paid at or near the National Minimum Wage (NMW).  HM Treasury has now published a consultation document, entitled National Minimum Wage workers: Travel and subsistence expenses schemes, which explains [...]

In a document for payroll system software developers, HMRC has provided more information about the split of the NICs earnings threshold (ET) from April 2011 into separate employee and employer thresholds.  The legislation already defines them separately but, because they have traditionally been set at the same monetary level (e.g. £110 per week for 2010/11), [...]

The Department of Trade & Industry has issued the following employment law updates: The guide Isle of Man Employment Rights and Responsibilities: a Guide for Employers, Employees and Workers has been revised and expanded.  Recent changes include new work permit exemptions the Employment Tribunal Rules 2008 new compensation limits new minimum wage rates the Points [...]

Still over 2½ years away, we are currently finding out more and more about the 2012 pension reforms and the optional NEST scheme – but also identifying new areas where clarification is needed. This week we have some guidance from the Pensions Advisory Service, detailing some of the issues that employers should already be considering. We [...]

When the Government’s pension reforms are introduced from October 2012, all qualifying employees will have to be enrolled automatically into a qualifying pension scheme.  Employers will be able to continue to use their existing pension schemes to meet their new statutory obligations if those schemes meet the minimum statutory requirements, which include the ability to [...]

The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE Regulations) are the current UK implementation of the provisions of the European Acquired Rights Directive.  The Directive and the domestic Regulations provide the right for employees to continue to receive the same terms and conditions of employment when their jobs are transferred to a new [...]

Section 317 of the Income Tax (Earnings and Pensions) Act 2003 provides a tax exemption for the provision of free or subsidised meals provided for employees in a canteen or on the employer’s business premises.  The 2009 Pre-Budget Report announced that the legislation would be changed to prevent this exemption being used in conjunction with [...]

As part of the process of replacing a number of Extra-Statutory Concessions (ESCs) with specific statutory tax exemptions, ESC A61 Clergymen’s heating and lighting etc expenses has now been included in the Income Tax (Earnings and Pensions) Act 2003 as sections 290A and 290B. The effect of these new sections is to formally exempt from [...]

In May 2009, the Department for Work and Pensions (DWP) published a consultation document with proposals to replace the current “sick note” issued by doctors with a new Medical Statement. The proposal was that the new form would be called a “Statement of fitness for work”.  It would allow doctor’s to indicate not simply whether [...]

On 23 October 2009, the Isle of Man concluded a comprehensive double taxation agreement with Malta.  Both governments having ratified the agreement, it will enter into force on 26 February 2010. Further information: Double taxation agreement with Malta comes into force Sponsored by Learn Payroll

On 25 January 2010, Jersey signed a comprehensive Double Taxation Agreement (DTA) with Malta.  It is the Island’s first DTA which is based on the OECD model convention. This DTA also represents Jersey’s sixteenth international tax agreement to meet the OECD tax standards on transparency and information exchange. Further information: Jersey signs tax agreement with [...]

This week, for a change, we have a number of relatively short news items on a varied range of subjects. Two of the items resulted, at least in part, from questions raised on the PayPerShop Forum. Some employers reported that they were receiving multiple and conflicting coding notices for the same employee and HMRC subsequently issued an [...]

The Government announced on 29 January that the UK will officially recognise Workers Memorial Day on 28 April each year to commemorate the thousands of people who have died, been seriously injured or made ill through their work. Workers Memorial Day originated in Canada in 1984.  The day is also recognised in other countries and, [...]

A coding notice problem was highlighted recently by some correspondents to the PayPerShop Forum and similar issues were raised in the press and elsewhere.  Employers were receiving multiple and conflicting coding notices for individual employees.  In response to the problems, HMRC issued the following explanation: “HM Revenue & Customs has recently introduced a new National [...]

Following consultation during 2008, HMRC announced at the time of the 2009 Budget that one of the proposed approaches to minimising potential debt problems for taxpayers, known as “Managed Payment Plans”, could not be introduced before April 2010 due to the need to make system enhancements. HMRC has now confirmed that the scheme will be [...]