0T Tax Code, Income Payment Orders, P60s, contracting out, Scottish income tax, P85, advisory fuel rate, royal weddingTuesday, December 7th, 2010
Is the week’s 0T article the last word? Probably not, but HMRC’s decisions seem at last to be sensible. See what you think!
The Scotland Bill has been published and we now have an idea of the kind of Scottish income tax structure that is planned to replace the (unused) Scottish Variable Tax – sometime in the future.
Just before publication, HMRC announced the release of the consultation document on PAYE Real Time Information. We will explain its contents in detail next week.
Also at the time of writing, the statutory adjustments to tax allowances for 2011/12 had just been published, showing the impact of the 4.6% year-on-year increase in the Retail Prices Index to September 2010. It shows, for example, an increase in the personal allowance from the current £6,475 to £6,785. However, the Coalition government, at the time of the June 2010 Budget, announced that the personal allowance for 2010/11 will be £7,475, so further legislation is required to give effect to the full £1,000 promised increase in the personal allowance. We will have to wait a little longer for the final tax allowance figures for next year. Nothing has yet been announced on the NICs thresholds for 2011/12.
Can you help with two particular questions from our forum? Both are asking for practical advice from employers with experience of the particular problems, namely monthly reporting of gross payment CIS subcontractors and paying temps whose holiday pay needs to calculated using a 12-week average. If you can help, please see this week’s list of forum postings.