Archive for March, 2011

From 1 April 2011, the fee that will be charged by HMRC where payment of taxes by credit card is authorised via the Internet will increase from 1.25% to 1.4% of the amount of the payment.  The increase reflects the overall costs incurred by HMRC for handling such payments. Further information: The Taxes, etc. (Fees [...]

The use of 0T and D1 as tax codes has been formalised by a number of changes and additions to the Income Tax (Pay As You Earn) Regulations 2003, all of which are effective from 6 April 2011. Code 0T operates effectively as a suffix tax code, without allowing for any personal allowances. Code D1 [...]

The necessary amendments have been made by new Regulations to reduce the SMP compensation rate for small employers from 4½% to 3% from 6 April 2011.  The reduction applies to payments of SMP made on or after that date. Further information: The Statutory Maternity Pay (Compensation of Employers) Amendment Regulations 2011 Explanatory Memorandum to the [...]

The Worker Registration Scheme is a transitional scheme that was introduced in 2004 when the ‘A8′ countries (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia) joined the European Union. Nationals of these countries must register under the scheme if they commence employment in the UK and 1.1 million did so between May 2004 [...]

HMRC hinted in a recent note to payroll system developers that a redesign of the P60 was under consideration for the 2011/12 year end.  After considering possible improvements and listening to developer feedback, the decision has been made not to change the format.

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? Holiday underpayment The question I was asked and am asking you is “am I liable to pay them the extra that they were entitled to from 1st April 2009?” More… Further [...]

Fail to pay enough National Insurance before you retire and you could miss out on the full state pension. But does making up your missed payments make financial sense? If you don’t pay enough National Insurance over the course of a tax year you’ll receive a letter asking if you’d like to top up your [...]

A welcome quiet week with just a few updates from HMRC.  How are you getting on with the new Basic PAYE Tools?  We have received a few initial comments about them on the Payroll-Help Forum – can you share your experience?  My initial concern is about how few forms and documents have been included, compared [...]

The following is an extract from the latest weekly informal updates (dated 4 March) from HMRC to employer representatives. 1. Annual coding message for employers I can confirm that we started processing P9 Coding Notices on 1 March. We expect the bulk of these P9s to reach employers via our e-channels by 10 March as [...]

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? Employment overpayment, after 3 years I have recieved a letter from a previous employment i had during my 2nd year at university. It was for an employment agency. They state that [...]

Some time ago we looked at the issue of changing employees’ contracts of employment. This is becoming increasingly common as employers have to persuade their staff to make changes to the way they work and are compensated in the face of serious operating difficulties. The article made clear the importance of gaining employees’ acceptance of [...]

An important element of British law is the right of individuals who have been subjected to a sanction or other disadvantage by authority to appeal if they believe that they have been treated improperly. Indeed most people would consider this a critical requirement of natural justice. Whatever, it certainly forms an important part of the [...]

A client rang the office recently in something of a panic. She had rejected a candidate for the vacancy of payroll clerk, quite properly as she saw it. But subsequently several of her colleagues had told her that she had left herself and the organisation vulnerable to legal action. She had, they suggested, breached laws [...]

Here we take our weekly look at answering some of the tricky HR questions we’ve been emailed. If you have a tricky HR question you needs answering email it to help@payroll-help.com and we’ll post the best here with an answer each week. A TUPE Problem We are shortly to have a change of ownership and our [...]

Last month you were left with the following legal question: A  plane, based in London but flying from Dublin to Athens, crashes on the border between Switzerland and Italy. Where should  the survivors be buried? The answer? The law is quite adamant that you should not bury survivors. Now for this month’s question: Can you [...]

There are a number of important matters to consider this week, including errors on P11D working sheets, new advisory fuel rates in between the normal review dates, and the opportunity for employers to recover some overpaid Class 1A NICs – if they can afford the time and effort required to make the claim! A few [...]

Copies of the six P11D Working Sheets for the 2010/11 year end can be downloaded from HMRC’s download page for forms and publications, and interactive versions of the forms have been included in this year’s Basic PAYE Tools. While updating The Learn Centre’s P11D course materials, the author found significant errors in the calculations built [...]

HMRC reviews the published advisory fuel rates every six months and the new rates, effective from 1 March 2011, are added to the Table below.  The rates were not due for review until June 2011 but, in view of the increases in pump prices since December, HMRC gave notice during February that the rates would [...]

The Income Tax (Earnings and Pensions) Act 2003 (ITEPA) makes provision for employees, who have received benefits that have both private and business use and those benefits have been reported in full to HMRC on form P11D, to claim a deduction from earnings, i.e. claim tax relief, in respect of the amount  relating to the [...]

The following is an extract from the latest weekly informal updates (dated 25 February) from HMRC to employer representatives. P11D issues HMRC provides comprehensive guidance on expenses and benefits on our website at http://www.hmrc.gov.uk/paye/exb/index.htm. This covers all you need to know about the key forms you will be required to complete, the records you need [...]