Archive for September, 2010

The discussion period for HMRC’s controversial proposals to improve the operation of PAYE has ended.  We have a review of the discussions at the forum sponsored by The Learn Centre in this week’s news items and you may be interested to read some of the comments posted in response to our article on this subject [...]

The deadline for the submission of responses to HMRC’s discussion document on the future of PAYE was 23 September.  In order to provide HMRC with additional face to face commentary from industry professionals ahead of the deadline, The Learn Centre sponsored an evening forum to discuss the proposals, hosted by Kate Upcraft.  Forty invited guests [...]

New minimum wage rates for agricultural workers in England and Wales come into force from Friday, 1 October 2010, at the same time as the 2010 National Minimum Wage (NMW) rates. However, unlike the NMW rates which apply to the first pay reference period that starts on or after 1 October, the new agricultural rates [...]

Minimum agricultural rates of pay are reviewed annually by the Agricultural Wages Board for Northern Ireland.  The anniversary date is the first Monday in April each year.   As minimum agricultural rates may not be set below the equivalent National Minimum Wage (NMW) rates, the Grade 1 minimum rate (applicable to workers age 16 and above [...]

Situations where the employer can apportion the costs, and where the employee must claim tax relief… The taxable value of the benefit of living accommodation can be restricted where a part of the property has genuine business use.  There are two specific situations: a business property that has living accommodation attached, e.g. a flat above [...]

This week: £900 million for HMRC PAYE Review response deadline New PAYE Guide for Ireland Taxi rides home demise of the NI number card increases in immigration fees benefits for employees after retirement… As anticipation, or fear, increases in advance of the Spending Review announcements, the Government is investing £900 million in HMRC over the [...]

In the advance of the Government’s Spending Review, due to be announced on 20 October, the Treasury has announced that an additional £900 million will be made available to HMRC to reduce compliance risk in the following areas: greater deterrents against tax avoidance and evasion, including a five-fold increase in criminal prosecutions, prevention of offshore [...]

The deadline for submitting responses to HMRC’s discussion document on improving the operation of PAYE is 23 September so any concerned readers wishing to make comments on HMRC’s Discussion document on improving the operation of Pay As You Earn (PAYE) have only until then to do so.  On that date, the eight-week period for feedback [...]

Section 248 of the Income Tax (Earnings and Pensions) Act 2003 provides a statutory exemption from income tax for the provision of transport home after late night working.  Five very specific conditions must be met for the exemption to apply. Employers wishing to make use of the exemption must also understand that there is also [...]

The Revenue has updated the Employer’s Guide to PAYE and the September 2010 edition is available on the Revenue’s website. The September 2010 edition of the Employer’s Guide to PAYE includes the following changes: all references to the Department of Social & Family Affairs have been changed to the Department of Social Protection in the context [...]

On 10 September, the Government announced that, with immediate effect, requests for replacement cards will be met by means of a printed letter and, from 2011, the plastic card will be replaced completely by a printed letter.   The change is expected to save £100,000 in 2010/11 and up to £1 million each year thereafter. The [...]

The UK Border Agency has announced proposals to increase immigration and nationality application fees for all those applying to visit, study, work or stay in the UK from October 2010 and, in some cases, from November 2010. Most of the changes relate to visas and nationality applications.  The only increase that directly affects employers is [...]

From 6 April 2006, when an employer provides payments and benefits to employees who are retiring or to the family or relatives of an employee who dies in service but which are not provided from a registered pension scheme (e.g. an occupational pension scheme), the payments and benefits are treated as being provided under an [...]

October’s payroll calendar dates and deadlines for: the United Kingdom, the Isle of Man, Jersey, Guernsey, and the Republic of Ireland. United Kingdom October 5 – This is the final day of tax month 6.  Tax and NICs etc for payments made in the tax month to October 5, or in the tax quarter to [...]

This week: Update your Employer CD-ROM NOW!! What if one of your employees receives a P800? HMRC compliance check coming up? The new NICs Holiday explained… As promised last week, we have completed our review of the new “Regional Employer National Insurance Contributions Holiday for New Businesses” – “NICs Holiday” for short.  The scheme started [...]

Employers using the CD-ROM database must install the September update immediately to prepare for the 2011/12 Basic PAYE Tools. HMRC issued the first Employer CD-ROM in advance of the 1998/99 tax year.  The CD-ROM issued for use in the 2010/11 tax year is to be the last. In its place, a set of PAYE tools [...]

How you can help if employees ask you about the figures shown on the P800 Tax Calculation they have received from HMRC. On 6 September, HMRC started to send out a letter direct to individual taxpayers, informing them that HMRC’s records indicate that they have paid too much or too little tax for the tax [...]

HMRC introduced a new system of compliance checks from April 2009, supported by a new penalty system.  A series of thirteen factsheets have been published that are issued to employers, as appropriate, during a compliance check. The factsheets are: CC/FS1 General Information CC/FS2 Request for information and documents CC/FS3 Visits – Pre-arranged CC/FS4 Visits – [...]

Starting 6 September, new businesses can offset up to £5,000 against their NICs liabilities for each of up to 10 new employees… The Coalition government’s June 2010 Budget announced preliminary details of a NICs Holiday for new businesses in targeted areas of the UK.  During the three years that the scheme will operate, new businesses [...]

Special tax provisions are made for students who are employed only during their between-term holidays, including UK nationals who are studying abroad and who return to the UK to work during their holidays.  If the student does not produce a P45 and the requirements (as described below) are met, the employer must provide form P38(S) [...]