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Questions from our forum 07/12/10
Monday, December 6th, 2010
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Each week we receive a number of payroll questions on our forum, and here are this week’s batch. Can you help with any answers?
Forum Posts:
Holiday Pay Entitlement/Accrual for Rec Agencies
Have noticed much input on Holiday Accrual and Holiday Pay Accrual and read with interest previous advice and posts that have been made. We work with many Temporary Recruitment Agencies and see the legislation, advice and suggestions on holiday are varied and interpreted in different ways. With regards to the actual Holiday Time workers earn, I think it is fairly straight forward, building to the 28 days for a full year. But what rate to pay is my main interest.
I have always been of the opinion, as has been commented in these forums, that accruing as you go so you build up a Holiday money fund, which is then paid out in line with the time that has been accrued makes accounting straight forward and makes sense. I have read items referring to the paid out rate, should be based on the last 12 weeks worked for “casual/non standard” workers. What are your thoughts/experience with still using an accrual method for the pay as opposed to this moving average, which I feel not only makes it difficult to maintain a total balance in accounts, but to also assess profitability with clients as the actual total costs are unknown without this holiday rate figure being known.
This is of main concern for Temp Agencies and I welcome people’s thoughts and approach.
A client has not included the details of gross payment subcontractors on the CIS monthly return. They were all verified by HMRC. What should we do to correct the situation?
I have a fairly large client who sends me a spreadsheet each month for the CIS so I can process and file online. It has recently come to light that she has never notified me of any subcontractors who are eligible for Gross payments, although she has always verified them with HMRC. As they were gross payments she didn’t think they had to be included in the monthly returns.
We are now faced with a dilemma. We will of course include all gross payments from now on, but do we need to amend the returns from April 2010 -a mammoth task, but not impossible? Is there any point in this as there is no loss of revenue to HMRC? As far as previous years go, again it would be only a paper exercise, and would take an inordinate amount of time for the client to produce the figures.
As far as I can see, the only reason for reporting gross payment subbies is so HMRC can check that they are genuinely entitled to gross payment. As she has made sure they were all verified before payment was made, presumably the gross payment status is OK, but will HMRC take this view?
Does anyone have any experience of anything similar, or know what HMRC’s take is likely to be?
Further questions from our forum:
- Are utility bills allowable expenses when paid for relocation?
- Can my employer reduce my commissions in order to increase my basic pay to the level of the national minimum wage?
- Can an employee on maternity leave join our cycle-to-work salary sacrifice scheme?
- Can my employer pay single time for working Christmas day this year when he has always paid double time in the past?
- My employer will not give me a P60 and HMRC is not helping. What should I do?
- Why have some of the new advisory fuel rates gone up when the fuel prices have gone down?
