Archive for March, 2012

Two things that payrollers up and down the country are thinking at this very moment: Where will I be when the Chancellor delivers Budget 2012 this week, and What is the best way for me to find out what impacts me? We have been thinking this at The Learn Centre for some time now and [...]

In our Newsletter last week, we advised that the Low Pay Commission had reported to the Chancellor giving advice on the National Minimum Wage rate for 2012.  On 19 March 2012, the Commission confirmed that the Government had accepted its proposals which will apply from the first ‘pay reference period’ that starts on or after [...]

On 06 March 2012, the OTS (Office of Tax Simplification) put forward its recommendations to the Chancellor of the Exchequer ahead of his Budget and issued its final report on tax advantaged share schemes (TASS).  There are four types of TASS: Company Share Option Plans (CSOP) These are HMRC-approved schemes where an employer may grant [...]

HMRC’s Software Developers Support Team (SDST) made an informal announcement to software developers on 15 March 2012 saying that the P38(S) procedure and form will be withdrawn from tax year 2013/14.  This will have an impact on any company that relies on the procedure and form for employing students during their vacation periods. There are [...]

As we approach the end of one tax year and the start of another, it is relevant to remind payrollers of their administration task which is the Basic Earnings Assessment (BEA).  As you will remember, the tax exemption conditions changed at the start of tax year 2011/12, which affected employees who join / joined an [...]

During its term in office, The Coalition Government is already conducting a review of employment laws and regulations that may prevent an employer taking on new employees.  This was detailed in our news item on 26 November 2011 as a result of Business Secretary Vince Cable’s speech to the Engineering Employers’ Federation on 23 November [...]

BIS have published their updated Annual Review document detailing the employment law reforms that are already going through Parliament as a result of its Resolving Workplace Disputes consultation: Effective 06 April 2012 (and subject to Parliamentary approval of secondary legislation): Increasing the unfair dismissal qualifying period from 1 to 2 years Increasing the maximum limit [...]

The March DWP communication tool is available online which, this month, has coverage of the Welfare Reform Act (which brings us the Universal Credit which is made possible by payroll departments submitting data via RTI). Comment This is a worthwhile read anyway, however, it is especially good this month to see Iain Duncan-Smith’s ecstatic face [...]

Over the last few months, we have taken a step-by-step approach to the exciting new prospect in our payroll lives which is Real Time Information.  This Newsletter leaves you with a summary of the submissions and some thoughts. We have covered all of the five submissions that we are going to have in our departments [...]

The Learn Centre has received more than a few queries over the last few weeks regarding the tax position caused by Week 53, 54 and 56 payments.  The Leap Year, no doubt, has caused an increase in such situations this year.  The first article in our Newsletter this week concerns this issue and how Week [...]

We apologise for the outage on the Payroll-Help website.  You might have noticed that the site disappeared and was replaced by a message saying the domain had expired.   This was not true.  The domain is set to be renewed automatically but the hosting company that looks after the renewals didn’t do it properly.  They have now corrected the [...]

The Learn Centre (TLC) has received quite a few queries about the possibility of underpayments of tax due to increased instances of Week 53 situations in the 2011/12 tax year.  Therefore, this warranted an in-depth discussion on the topic. The tax year is divided into 52 weeks, 26 fortnights or 13 four-weekly pay periods.  However, [...]

George Osborne referred to it as temporary and said that it could do lasting damage to the economy.  Boris Johnson said that it was harming the City of London and last week we reported that over 500 business leaders had called for the abolition of the 50p Additional Rate in a letter to The Daily [...]

The Low Pay Commission was established in 1998 as a result of the National Minimum Wage Act.  One of its roles as an independent statutory, non-departmental public body is to advise the Government about the National Minimum Wage and make recommendations.  The remit of the Commission is to report to the Prime Minister and the [...]

Whilst we are on the subject of Minimum Wages…. The Employment Forum consulted in 2011 looking at the economic impact of the Minimum Wage in Jersey.  Its role is to provide recommendations to the Social Security Minister regarding any changes to be made and the method used for any uprating. The Forum released its recommendation [...]

The Office for Tax Simplification (OTS) was established on 20 July 2010 with the purpose of providing independent advice to Government on areas of possible simplification of the tax system for taxpayers and businesses.  This advice, in the form of a report, is presented to the Chancellor ahead of his Budget statement which may, or [...]

On 14 June 2011, the OTS wrote to David Gauke, Exchequer Secretary to the Treasury, outlining proposals for further simplification reviews.  In addition to the proposal to review small business taxation was the request to focus on the taxation of pensioners, simplifying the system for the estimated 5.6 million people of pensionable age who pay [...]

After its first reading in the House of Commons on 16 February 2011, and after suffering many readings, defeats and amendments along the way, the Welfare Reform Bill received Royal Assent on 08 March 2012. Iain Duncan Smith, Work and Pensions Secretary, called the new Act ‘an historic moment for the Coalition Government’ and ‘the [...]

We have covered four of the five RTI submissions in our Newsletters over the last few months: The Employer Alignment Submission (EAS) – the once-only submission designed to align HMRC’s National Payment System (NPS) with the personal details held in your payroll system The Full Payment Summary (FPS) – probably the main RTI submission made [...]

Last month you were told that a scientist is growing bacteria in a laboratory dish. Once a minute each bacterium divides into two. She places one bacterium in the dish at 9.30am. At 10.20am the dish is half full. You were asked at what time it would be full. Well, since the number of bacteria [...]