Archive for October, 2011

They say that Christmas comes earlier each year, at least in the shops.  Now that Halloween is here, I feel it is open season so have no shame in mentioning Easter 2012 this week! Thank you for all the question posts to the Forum this week and for the comments and replies.  It is great [...]

The Department of Work and Pensions have made available the October 2011 edition of their bulletin, designed to keep stakeholders up-to-date.  In this month’s issue: A progress report on the Pensions Bill 2011 which has completed its Report stage News on the launch of an Automatic Enrolment Stakeholder Toolkit Update on the Welfare Reform Bill which has [...]

It happened in 1928, 2007 and in 2012 it is happening again – Good Friday falls on 06 April, the first day of the tax year.  Although most of us have not even begun to think about 2012, let alone Easter, it is worth pointing out as new calendars and diaries start to arrive on [...]

This case is concerned with a payment made in arrears and when such a payment becomes liable for tax.  Whilst this tells us nothing new, it demonstrates a basic principle – most employers will pay their employees in arrears. Mr Fountain received a payment on 07 April 2007 for work carried out in March 2007.  [...]

Last week, HMRC published the above discussion document as part of Government’s commitment to improving and simplifying the PAYE system and the associated burdens for employers. At present, most employers will have a single PAYE reference, though an employer can elect to have more than one.  For example, a large employer may be the overall [...]

George Osborne made a comment during the run up to the 2010 election which implied that the Conservatives would review the operation of PAYE.  This was not in the manifesto.  However, page 46 (of 121) in the June 2010 Budget Report announced there would be a consultation ‘on mechanisms that could support more frequent or [...]

We are pleased and excited to advise that The Learn Centre is acting as consultants to one of the employers who will be involved with the Real Time Information (RTI) pilot from April 2012.  This is from both a software developer and an employer perspective.  We are committed to providing topical, relevant and up-to-date payroll [...]

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 Is it still a requirement that parts 2 and 3 of the P45 have to be present before the P45 can be operated? Now that most employers file online [...]

The Government announced last week that it had decided to delay the State Pension Age increase from 65 to 66 by 6 months for both men and women.  The pension age for women will still increase to 65 by 2018, as planned, however, the increase to 66 for both sexes will be put back 6 months to [...]

Double Taxation Relief and International Tax Enforcement Orders 2011 have been made with: South Africa - which amends the existing 2002 Convention; and Mauritius - which amends the existing 1981 Convention Both Protocols entered into force 13 October 2011. Further Information The Double Taxation Relief and International Tax Enforcement (South Africa) Order 2011 The Double Taxation Relief and International [...]

Last week, the Office for National Statistics announced the inflation figures for September 2011.  Whilst these are always a guaranteed news item, do we really give the figures the attention that they deserve?  For example, the headlines read that the Retail Prices Index (RPI) moved to a 20-year high of 5.6%.  However, in the acronym-filled payroll [...]

We have highlighted that the above Regulations were made on 05 October 2011 by the Department of Employment and Learning, to be effective 05 December 2011.  The Department has now published guidance to aid their understanding as well as detailing the implications and responsibilities for all parties involved. Further Information The Agency Workers Regulations (Northern Ireland) 2011 Agency [...]

HMRC consults again on the NICs status of lecturers, teachers and instructors. In October 2009, HMRC published a consultation document entitled Lecturers, teachers, instructors or those in a similar capacity – In relation to the amendment of the Social Security (Categorisation of Earners) Regulations 1978. In certain specific situations, the Social Security (Categorisation of Earners) [...]

DWP consults on the transfer of the functions of the Child Maintenance and Enforcement Commission into DWP ministerial control. On 10 October, the Department for Work and Pensions began a public consultation on proposals announced a year earlier to increase the transparency and accountability of all public bodies.  One of the proposals involved the abolition [...]

The Government has announced that its plans to increase the State pension age to 66 is to be delayed.  This is with the prime aim of helping women who would be most affected by the rise.  From April 2010, the womens’ pension age has already been increasing from 60 to 65.  The current Pensions Bill proposes that this increase [...]

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 Why can’t a nanny, supplied by an agency to clients, be treated as self-employed?  Why does the agency have to operate PAYE and deduct NICs? A nanny is employed [...]

Last week we reminded you about the increase in the national minimum wage, a feature of October every year.  New penalty rules for late filing of CIS monthly returns were also expected to be brought into play from October and the effective date has now been announced as 6 October.  We have a reminder this [...]

Guidance for employees in booklet IR115 updated. HMRC has updated and reissued booklet IR115 Paying for childcare – getting help from your employer to include the new tax exemption rules for the provision of childcare vouchers. The guidance for employers in Helpbook E18 and in the Employment Income Manual was also updated in September. Further [...]

Phased introduction of letters to provide NI numbers completed in October. The following is an extract from the latest weekly informal update (dated 30 September) from HMRC to employer representatives. We told you in February’s Employer Bulletin that we would be withdrawing the plastic National Insurance number (NINo) card and replacing it with a letter. We know [...]

HMRC’s plans to ask certain employers to pay a security where there is a risk of deliberate non-payment of PAYE will be introduced from April 2012. As announced by the Coalition government at the time of the June 2010 Budget, section 85 of the Finance Act 2011 includes a measure that allows HMRC to make [...]