Archive for January, 2012

Completely coincidentally, I seem to be stumbling across situations which can be compared to the major payroll change just around the corner – the introduction of RTI.  I read that the Royal Mint is now producing 10p and 5p coins, made from steel rather than cupronickel, for circulation from 01 January 2013.  This is the [...]

HMRC advised at the start of the year that they were reversing their decision to tax post-termination share-related payments at BR.  From April 2012, such payments after leaving will be taxed at 0T on a Week 1 / Month 1 basis. Last week, we advised that the necessary Regulations to effect this change in legislation [...]

Section 34 of the Employment Relations Act 1999 and Article 33 of the Employment Relations (Northern Ireland) Order 1999 provide for an increase or decrease in the following statutory limits each year according to the year-on-year change in the Retail Price Index (RPI) at the previous September. The Employment Rights (Increase of Limits) Order 2011 [...]

The 31 January filing deadline applies to all taxpayers required to complete a SA tax return by HMRC.  This is, of course, unless they can demonstrate that there is a ‘reasonable excuse’ for not doing so. In this regard, last week, BBC’s Money Box programme discussed the issue of a member of Britain’s armed forces [...]

The Coalition Government announced in the June 2010 Budget that its long-term policy objective was to raise the personal allowance to £10,000 for individuals under the age of 65.  The intention was for this to be completed by the end of their five-year term of government. However, HM Treasury confirmed in the Autumn Statement 2011 [...]

This is the final repeat of the news items from last week and the week before.  HMRC’s Press Office has also issued another reminder – however, see the below press release dated 26 January 2012: In its New Year message, HMRC have issued a reminder to those who have still got to complete their Tax [...]

The Public and Commercial Services (PCS) Union advises that some HMRC staff are likely to stage a series of ‘short strikes’ on 31 January this year.   This is to object to the use of two private companies, Sitel and Teleperformance, who have been engaged to handle trials in HMRC tax credit contact centres.  These year-long [...]

Last week, we advised that there will be five types of submissions, though employers, or bureaus if the payroll is outsourced, may not be required to make all of them: Employer Alignment Submission (EAS) Full Payment Submission (FPS) Employer Payment Summary (EPS) National Insurance Verification Request (NVR) Earlier Year Update (EYU) We concentrated on the [...]

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?…………. An employee’s company car is unavailable for 2 weeks so he has been given use of a pool car.  Does the use of this pool car have to be [...]

I do like to think of myself as an optimist.  I try to see the good in a situation and in people – a half full rather than a half empty person.  However, in this life and after a few years on this earth, I have learned that I must apply some realism to a [...]

The ‘10-minute rule’ is an opportunity for Members of Parliament to present a case for a Bill on a new or existing aspect of legislation in a speech lasting 10 minutes or less.  Using this rule, on 29 June 2011, Valerie Vaz proposed the Adoption (Leave, Pay and Allowance Arrangements) Bill.  It was not opposed, [...]

This is just a repeat of the news items from last week, as it is especially relevant at this time of year. In its New Year message, HMRC have issued a reminder to those who have still got to complete their Tax Return for 2010/11.  This has to be filed: Online, and By midnight 31 [...]

HMRC advise that a Tax Information Exchange Agreement between the United Kingdom and the Kingdom of the Netherlands, in respect of Aruba, came into force on 01 January 2012.  This was made on 12 October 2011, signed on 05 November 2011 and provides for the exchange of information between the relevant tax authorities of the [...]

In July 2011, we reported that the PAYE Regulations had been amended to give HMRC the powers to recover tax debts of up to £3,000 by means of an adjustment to an employee’s tax code.  These powers are effective from tax year 2012/13.  Recoveries are at HMRC’s discretion and can be made without the consent [...]

In our Newsletter at the start of the year, we advised that HMRC had announced on 20 December 2011 they were reversing their decision to tax post-termination share-related payments at tax code BR.  From April 2011, all other post-termination payments (i.e. after the P45 has been issued) were taxed at 0T on a non-cumulative basis.  [...]

We are now looking at the data that will be contained in the RTI submissions to HMRC.  As a reminder, there are five types of submissions that RTI Employers can be required to make.  If the payroll is outsourced, say to a payroll bureau, they may make these on the employer’s behalf.  Note that not [...]

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?…………. Is it correct that, under RTI, the leave date will have to be declared in the month that the employee leaves rather than holding the record open until the [...]

In its New Year message, HMRC have issued a reminder to those who have still got to complete their Tax Return for 2010/11.  This has to be filed: Online, and By midnight 31 January 2012 The quote from HMRC says: Missing the 31 January deadline will mean that Self-Assessment taxpayers will face penalties…. we want [...]

We are continuing to look at ‘RTI – The What’ in this Newsletter, starting to focus on exactly what information will be contained in the RTI submissions themselves.  However, it is necessary to say, again, that RTI does not change the fundamentals of payroll processing.  All activities that are currently performed, i.e. calculating and deducting [...]

Years ago on a Christmas Eve, when I was a little less worldly and wise than I am today, I was left a considerable amount of money by an old gentleman that I had never heard of.  I think he was in America.  The E-Mail notification of my windfall asked me for my bank details, [...]