Archive for November, 2011

The Autumn Statement on 29 November 2011 focused on the economy and the reducing growth forecasts as a result of European and Global influences.  For payroll professionals, there were few surprises in the Statement.  Whilst there is another change on the way in respect of the State Pension Age, even this cannot be said to [...]

Interesting fact time – it was the Industry Act 1975 that compelled Government to keep an economic model at the Treasury, detailing such things as economic policy and economic events, both in and outside the United Kingdom, which may impact us.  This model allows Government to make forecasts on issues like growth, employment and inflation.  [...]

HMRC routinely reviews the published Advisory Fuel Rates every three months.  The current rates, effective from 1 December 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 September 2011. Employers may choose to: implement the new rates immediately, or [...]

It is nearly that time of year again, not long to go now.  Up and down the country, sleepless nights are becoming more and more frequent and wish lists are being prepared, waiting for that special man.  What treats will he have for me this year?  Only a few more hours – George Osborne delivers [...]

The following is a selection of questions that have been posted to our Forum over the past week.  Can you contribute to any of the discussions?………… Forum Post An employer wants to pay a lump sum amount in respect of business mileage every month.  This would be subject to tax and NICs.  However, if he [...]

We have not been shy of highlighting the spate of cases where HMRC have been criticised for charging penalties.  There are two more cases to report this week from the First Tier Tribunal (Tax), together with a statement from HMRC. Bridge Utilities Ltd v HMRC Bridge Utilities were fined £800.00 by HMRC in respect of [...]

IR35 legislation was designed to prevent the avoidance of tax and NICs being charged when services were provided through an intermediary, or Personal Service Company (PSC).  Simply, where the relationship between worker and client is such that, were it not for the intermediary it would have been classed as employment, the normal tax and NICs [...]

Over the last few weeks, we have taken a journey right back to the time before RTI even had its name.  Just before we are brought totally up-to-date, it is worth pausing, reflecting and summarising.  The exchange of data in real time is such a change for us and, as such, it is so important [...]

In a speech to the Engineering Employers’ Federation on 23 November, Business Secretary Vince Cable spoke of several employment law reforms which will impact the payroll department.  We do not intend to cover these in any depth; however, it is worthwhile pointing these out, particularly as some may impact the payroll function: The Government plans [...]

Katy Christiansen, Global Payroll Implementation Manager for activpayroll in Aberdeen, won the Payroll Manager Award at the Payroll World Awards on 16 November 2011.  Katy is currently studying with The Learn Centre and our congratulations go to her for this well-deserved award. Katy joined activpayroll when it launched in 2001 after leaving university.  Activpayroll is [...]

The Government consulted on amendments to the UK Working Time Regulations earlier in the year.  These are the Regulations which implement the European Working Time Directive (WTD).  Specifically, the Government’s consultation had much to do with recent rulings in the UK and Europe about holiday pay and how it is influenced when an employee is [...]

Double Taxation Relief and International Tax Enforcement Orders 2011 have been made with: Hungary Ethiopia China Brazil Aircraft Crew Armenia The Orders have different effective dates, therefore, please see the individual links for this information. Further Information The Double Taxation Relief and International Tax Enforcement (Hungary) Order 2011 The Double Taxation Relief and International Tax [...]

As part of the move to Universal Credits, the DWP require a database of 25% of employers on which to test their system, to be live in October 2013.  This 25% employer pool is required by April 2013.  It was no surprise; therefore, that HMRC announced on 23 November 2011 that it is extending its [...]

There were two interesting consultation papers issued last week.  Mind you, the term ‘interesting’ is very subjective and I am aware that this may be viewed as a sad reflection on my life!  Nevertheless, both are important, one from HMRC and the other from HM Treasury, running in parallel.  The Treasury one is particularly interesting [...]

For those that are already up-to-speed with RTI, the latest developments are the issue of draft amendments to Regulations, which outline what the employer’s obligations will be when Real Time Information (RTI) is effective.  There are Regulations that are necessary for PAYE, NICs and CIS submissions under RTI, and will apply from 06 April 2012 [...]

The story so far… The Coalition Government issued a discussion document in July 2010 called ‘Improving the Operation of Pay As You Earn (PAYE)’, which introduced us to the concept of Real Time Information and, later, Centralised Deductions.  Just after this, the DWP published their White Paper ‘Universal Credits – Welfare that Works’.  This outlined [...]

In their latest update, HMRC have advised that, from last week, P11D(b) Penalty Notices have started to be issued – this is the form on which an employer makes their annual Class 1A Return.  The penalty is for tax year 2010/11, where P11D(b) Returns were due by 06 July 2011. The penalty is £100.00 per 50 [...]

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 Post I have been told that I have been overpaid for the last 4 years and the company want to reduce my basic salary immediately.  Do I have to repay [...]

Budget 2011 announced that Government would consult on the topic of a closer integration between tax and National Insurance, the subject that always seems to be on every Government’s ‘back burner’ in recent years.  Between July and September this year, HMRC ran a call for evidence, which received over 70 responses from a range of [...]

On 14 November 2011, HMRC issued a 12-week discussion paper entitled ‘Modernising the Administration of the Personal Tax System’, with a very short consultation period of 12 weeks.  This is aimed particularly at individual taxpayers, although employers and representative bodies have been encouraged to participate as well. The whole discussion document is with the intention [...]