Archive for April, 2010

Everything is very quiet in the run-up to the election. Is this the “lull before the storm”? Sponsored by Learn Payroll

As magnetic media is not accepted by HMRC as a means of filing returns online, its use has diminished and relatively few computerised payroll systems now support it.  After consultation with users of magnetic media, HMRC has decided not accept any P14 and P35 Returns using magnetic media after 31 October 2010, for Returns for [...]

The Civil Aviation (Working Time) Regulations 2004 implement the European Working Time Directive for mobile workers in civil aviation. The 2004 Regulations restrict annual working time for aircrew to 2,000 hours.  When crew members are on standby duty, ready to carry out their duties if called on to do so by the employer, the time [...]

The Government’s rush to complete its legislative programme before the election means that the Finance Bill completed its passage in short order and is now in force. All of its provisions have been aired in this newsletter before, but a brief summary is provided below. Another significant Bill also received Royal Assent – the Equality Act [...]

HMRC’s PAYE Desktop Viewer (PDV) was a new facility introduced in October 2009 to provide improved access to coding notices, notifications and reminders.  An updated version of the application is now available to download from HMRC’s website and all users should install the new version in order to view the latest notices. Further information: Using [...]

HMRC’s merger of its PAYE and NICs systems began in June 2009.  The National Insurance and PAYE Service (NPS) brings together what used to be the National Insurance Recording System (NIRS) and the PAYE elements of Computerisation of PAYE (COP).  The system’s facilities were upgraded in November, following which HMRC had to handle significant data [...]

If an employer has no P14s and P35 to file for its PAYE scheme, or for one of its PAYE schemes, HMRC has introduced a new online facility to make a declaration to that effect.  It is still possible to notify HMRC by letter or telephone, but the online facility provides an immediate email acknowledgement [...]

HMRC has updated numerous sections of the technical Registered Pension Scheme Manual to reflect recent statutory changes.  A new chapter has been added to provide an overview of the international pensions regime. Further information: Recent updates to the Registered Pension Schemes Manual Sponsored by Learn Payroll

Changes to tax legislation already in force The relatively short Finance Bill quickly completed all of its parliamentary stages and gained Royal Assent on 8 April 2010.  In summary, in the context of payroll, the new Act makes the following changes: the new 50% additional rate of tax, effective from 2010/11 the bank payroll tax [...]

The Equality Act 2010 gained Royal Assent on 8 April 2010 and is expected to come into force from October 2010.  The Act repeals much of the existing discrimination legislation.  For example, the whole of the Equal Pay Act 1970, the Sex Discrimination Acts 1975 and 1986, the Race Relations Act 1976, and the Disability [...]

The Income Tax Division of Treasury has announced that, from 6 April 2010, employers can submit their T37 Employer’s Annual Return online, together with their employees’ T14 and T9 details. Further information: Income Tax Division Enhances Online Services for Individuals and Employers Sponsored by Learn Payroll

There seemed to be no surprises in the Government’s updated regulatory change programme, but it clearly doesn’t include the little things that are actually big things in the payroll world. No mention of the change to allow electronic P60s from April 2011 and also no reference to HMRC’s volte-face on the plan for a special tax [...]

In a detailed document published on 26 March, the Government has updated its programme of regulatory change from April 2010 onwards.  The first “Forward Programme” was published in October 2009 and listed some 380 measures planned up to April 2011, with over 100 further measures that did not have an implementation date. The new document [...]

Following extensive consultation during 2008, HMRC announced that new procedures would be introduced from April 2011 for simplifying the current P38(S) procedures for students earning less than the personal allowance during a tax year.  The new procedures would have involved the introduction of a special tax code that would only deduct tax once earnings exceeded [...]

New Agreement with Germany A new Double Taxation Agreement between the UK and Germany was signed in London on 30 March 2010.  Its provisions will not come into force until the both countries have completed their legislative procedures. Further information: Germany: Double Taxation Convention Sponsored by Learn Payroll

HMRC has updated and reissued booklet CA17, providing guidance for employees on the minimum contributions paid by HMRC to APP and APPSHP schemes. Further information: Employee’s guide to minimum contributions Sponsored by Learn Payroll

With effect from 1 September 2010, the Teachers’ Pensions Regulations 1997 are revoked and replaced with new Regulations that, in addition to drafting amendments, include a number of changes of substance.  These include: changes to the definition of pensionable employment provisions relating to employer and employee contributions restrictions on the calculation of average salary changes [...]

All of the remaining statutory Regulations governing the operation of the new entitlements to additional paternity leave and pay from April 2011 have now been made. Further information: The Additional Paternity Leave Regulations 2010 The Additional Statutory Paternity Pay (General) Regulations 2010 The Additional Statutory Paternity Pay (Weekly Rates) Regulations 2010 Sponsored by Learn Payroll [...]

On 15 March 2010, the Agricultural Wages Board for Northern Ireland agreed to increases of 1.8% for agricultural workers across all grades.  The new rates, which take effect from Monday, 5 April, are as follows: Grade 1 – Minimum rate, for the first 40 weeks cumulative employment – £5.90 Grade 2 – Standard worker – [...]

Online Tax Services for Employers were first introduced in 2007 as part of the IOM Government’s commitment to increase the provision of services online.  By using these services, it is possible for employers to carry out all of their statutory income tax business online.  There has been a steady take up of these services, with [...]