Archive for September, 2011

End of fixed term contract One of our employees was engaged on a fixed term contract that is about to expire. We do not need her any more. Is there anything in particular we have to do other than just let her go? Reply You should treat the ending of a fixed term contract in [...]

You may be unlucky enough to find yourself with an accident prone employee, either because you see the same name recurring in your accident book or because, whereas some people drop things now and again, one employee does so regularly. Well, drops things, trips where there is nothing to trip over, cuts a finger on [...]

Last month we posed this problem: An old farmer lay dying. He had twin sons who did not get on with each other so he wanted his estate to remain intact and not be divided between them. Also he was not happy with his sons’ fast pace of life. He therefore gave each son a [...]

This article covers in some detail the new legislation, effective from April 2011, which requires employers to calculate and deduct PAYE tax and Class 1 NICs from deferred payments made by third parties. The legislation The Finance Act 2011 gives effect to new anti-avoidance measures that require PAYE tax to be deducted from payments of [...]

HMRC routinely reviews the published advisory fuel rates every three months and the current rates, effective from 1 September 2011, are added to the Table below.  With the exception of one of the LPG rates, there are no changes to rates that applied from June 2011. Employers may choose to: implement the new rates immediately [...]

The first of our news items this week should be considered carefully.  Just how RTI will cope with all of the different situations involved in payroll preparation and processing is of great concern to many.  HMRC has addressed many of them but are there more that are not included – perhaps not yet even considered? [...]

One of the most common concerns over the Real Time Information (RTI) project is whether or not HMRC really understands the different payment scenarios that occur when the payroll has been run and then changes have to be made.  The latest technical guidance published by HMRC for developers provides opportunity for the concerns to put [...]

The Class 1 NICs rules for handling liabilities for disguised remuneration are almost identical to the PAYE rules. The new legislation, effect from April 2011, that requires money, loans and assets provided in specific situations through third parties to be taxed under PAYE, has been covered in some detail in a recent article.  Such benefits [...]

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? Are there any issues in stopping processing PAYE for AWOL employees rather than processing zero pay and generating tax refunds? I”ve just started a new payroll job and my new company [...]