Questions from our forum 24/02/11

Friday, February 25th, 2011

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?

Is provision of storage room a benefit in kind?

We are moving to new offices and will have a spare room. We could let it out, and get about £300 pcm, but we don’t want to because we think we will need it ourselves within a year or two. In the meantime, one of our employees would like to use the room for storage. Can we let her do that without attracting a P11d reporting requirement and tax / Class 1A liability?

More…

Further questions from our forum:

  1. How are employers getting on with HMRC’s new Basic PAYE Tools?
  2. An employee has stopped her salary sacrifice in order to obtain OMP at her original salary.  Can she start it again in order to qualify for the full tax exemption from April 2011?
  3. (Ireland) Is there an Irish equivalent to BACS?
  4. Is there any guidance on the VAT implications of the Astrazeneca ruling for salary sacrifice schemes?
  5. Running a Sage payroll, what are the implications of moving from 4-weekly to monthly?
  6. What is current situation on holiday accrual during long-term sickness absence?
  7. Estimated pay for the fourth week in one month is corrected in the next.  How should that be accounted for and what are the NICs implications?
  8. A zero-hours contract employee has worked for one month before going off sick.  How is her SSP entitlement determined?
  9. How is Permanent Health Insurance treated for tax purposes?
  10. HMRC says we have to pay underpaid tax because we did not apply a tax code that, in fact, we did not receive.  What should we do?
  11. An employee on table letter C has earnings in excess of the lower earnings limit.  Is she entitled to SSP as she does not pay NICs?
  12. Can payment in lieu of notice be made before the date of redundancy?
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