Archive for September 3rd, 2010

What happens when an employee underpays tax and HMRC says that it’s the employer’s fault?  In our first story this week, a tax tribunal evaluates routine PAYE procedures to see who’s to blame.  What would you have decided? The adult rate of the National Minimum Wage will be extended to 21-year-olds in October, giving them [...]

In 2009, HMRC discovered that a Mr. Cowan had underpaid tax amounting to £2,655 between 2002 and 2007.  HMRC decided to hold Mr. Sasin, the employer, responsible for the under-payment on the basis that Mr. Sasin had not taken care to comply with PAYE Regulations relating to the application of tax codes. Mr. Sasin appealed [...]

From October 2010, the adult rate of the National Minimum Wage (NMW) applies to workers from age 21, instead of 22.  The obvious effect of this change is that, from October, workers aged 21, who must currently be paid not less than £4.83 per hour, will have to be paid at least £5.93 per hour. [...]

Part-time workers must be treated as all other regular employees.  They should be asked for a P45 when they start and, if they cannot provide one, the P46 procedures must be followed.  However, one administrative concession applies which, if used, requires the employer to follow a special procedure at the year end. If a part-time [...]