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Weekly Summary and Forum Highlights 008
Tuesday, September 21st, 2010
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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 next four years to bring in an extra £28 billion in tax revenue. The recent P800 controversy may pale into insignificance in comparison with future compliance efforts.
Have you told HMRC what you think of the PAYE review proposals – if not, do it immediately!!
Our Irish colleagues do not appear to have the same level of change as we do in the UK, but some recent changes are highlighted in their new PAYE Guide.
So, you run a monthly payroll and, each month, you have to work very late one night. Not unreasonably, your employer pays for a taxi home. You don’t expect to pay tax on the payment? Wrong…
The Coalition government challenged everyone to come up with cost saving ideas and, among the first of the suggestions to be implemented is scrapping the NI number card. In the context of immigration, the fees paid by immigrants and sponsors are intended to cover the costs incurred. Some are to rise less than a year after the last increase, including one that will affect some employer sponsors.
A lengthy but important Employer FAQ this week looks at the ongoing provision of benefits to employees who retire, or to the family members of employees who die in service. Is the provision of private medical insurance to a retired employee taxable and, if so, how? What about the ongoing provision of living accommodation? What about company pensioners who attend the annual Christmas party each year?
Several questions have been raised on the our forum recently about the provision of childcare vouchers under salary sacrifice during maternity leave, particularly about what should appear on the payslip, some of which reveal misunderstandings about the contractual nature of salary sacrifice. Can you help by explaining how you handle this situation?
FORUM HIGHLIGHTS
Questions posted over the past week…
- A student completed a P38(S) for the second period of employment in this tax year but not for an earlier period. Can the P38(S) be backdated to cover the earlier period?
- We provide incentive awards throughout the year and pay the grossed up value of the benefit through the payroll. To be fair to employees, can tax and NICs for all incentive awards be processed just in the final month of the tax year?
- Can an apprentice being paid £95 per week enter into a pension salary sacrifice?
- What are the statutory time limits for bringing a complaint for non-payment of holidays?
- An employee works as a carer for various people in their homes. Does the travel between those homes count for National Minimum Wage entitlements?
- I have just lost my job after six years working for the same company. I have been treated as self-employed during that time. Do I have any employment rights?
- The proposed tax relief restrictions on childcare provision require the employer to estimate each employee’s earnings. How will that be done?
- How do we answer Q3 on the P35 when some of our employees have received incentive awards from a third party under a Tax Award Scheme? What if the third party say they have TAS in place but the actually don’t?
- How are forms P61 and P62 used when, due to a strike, tax refunds are withheld over a tax year end?
- We are having problems calculating SSP using HMRC’s Employer CD-ROM. Can anyone recommend an alternative software solution?
- Our childcare voucher scheme used a contract provided by the supplier and we show the voucher value as an addition and deduction on the payslip. Is this arrangement okay or should we be asking our software developer for changes?
- How do we calculate the grossed up value of the net pay due when the payment will take the employee into 50% tax? (figures provided)
- I run domestic payrolls and am due a visit to check on money laundering compliance. Has anyone had such a visit and can help me to stop worrying?
- How do we show childcare voucher deductions on the payslip during the first six weeks of maternity leave, when no deductions are made, and during the rest of maternity leave, when deductions are to be made from occupational maternity pay?
