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FAQ
Pay and benefits for Reservists, your first TUPE and holiday entitlements
Monday, January 10th, 2011A welcome quiet week with no specific new items to write about. But I’m sure you have no illusions about 2011 being a quiet year! We have included the second of two articles about reservists this week, this time looking at the implications for employers of mobilisation. A correspondent on the Forum is involved with [...]
Should table letter C be used for employees over state pension age who are still contributing to a contracted-out pension scheme?
Friday, December 31st, 2010Contracted-out employment starts at age 16 and ends when the employee reaches the state pension age. The flowchart on page 3 of the CA41 NICs Tables (for Table Letters B and C) is very specific. If an employee is at or above the state pension age table letter C must be used, even if the [...]
Are employers obliged to allow time off for Reservists to attend Annual Camp and to pay for that time off?
Friday, December 17th, 2010Reservists are part-time members of the Armed Forces, or ex-members of the Regular Forces with a reserve liability, who are able to boost the capability of Regular Units during military operations. There are around 40,000 Volunteer Reservists in the UK and they form some 25% of the UK’s total defence capacity. Employers should be aware [...]
For how many years must we keep our payroll records?
Friday, December 10th, 2010Regulation 97 of the Income Tax (Pay As You Earn) Regulations 2003 requires employers to “keep and preserve” their “PAYE records”, other than those that have to be sent to HMRC, for a period of not less than three years following the tax year to which they relate. Put another way, employers must keep the [...]
How should employers manage entitlement to “Keeping in Touch” days?
Wednesday, August 25th, 2010During the maternity, adoption and paternity pay period, no SMP, SAP or SPP may be paid for any week during which the employee performs any work for the employer. Although any such work does not bring the pay period to an end, the return to work, even if it is just for a day or [...]
Employer FAQ – How and when should forms P45 and P46 be applied?
Tuesday, August 3rd, 2010The following summary of the PAYE rules for the handling of forms P45 and P46 is based on guidance in Employer Helpbook E13 Day-to-day payroll, on HMRC’s website guidance Taking on a new employee, and an article in the October 2007 issue of Notes for Payroll Software Developers. When this article refers to “sending” forms [...]
Can my employer deduct money from my wages?
Tuesday, June 15th, 2010(UK relevant – Pre-tax deductions, statutory deductions, voluntary regular deductions, deduction in retail employment, one-off deductions, exempt deductions, how to make a complaint) There is no easy answer to this question. You are advised to read this article in full before deciding whether you think a particular deduction from your wages is lawful or not. [...]
Employer FAQ – Employment Status
Wednesday, June 24th, 2009What are the tax and NICs requirements for workers in “Umbrella Companies”? Like Personal Service Companies (PSCs) and Managed Service Companies (MSCs), businesses known as “umbrella companies” supply the services of workers to end clients. However, unlike PCSs and MSCs, the umbrella company is not an intermediary and the workers are not directors or shareholders. [...]
Employer FAQ – Employment Status
Wednesday, June 17th, 2009What are the tax and NICs requirements for workers in “Managed Service Companies”? Like Personal Service Companies (PSCs), Managed Service Companies (MSCs) are also intermediary companies through which the services of a worker are provided to an end client. In structural terms, they may be “composite companies”, where up to perhaps 20 workers become shareholders [...]
Employer FAQ – HMRC Questions and Answers
Monday, May 18th, 2009The following questions and answers are reproduced from the latest issue (May 2009) of Notes for Payroll Software Developers. They are also included in the latest Guide for pension and annuity payer, which provides guidance, in addition to that contained in booklet CWG2 Employer Further Guide to PAYE and NICs, to assist pension and annuity [...]
Employer FAQ – Assets Made Available
Monday, March 23rd, 2009What must be considered when taking advantage of the exemption for cycles and cyclist’s safety equipment? Before considering the conditions that must be satisfied in order to take advantage of the tax exemption for the provision of cycles and cyclist’s safety equipment, it is useful to understand the basic principles that apply when assets are [...]
Residence and Domicile – Further FAQs issued by HMRC
Monday, March 16th, 2009From April 2008, changes were made to the residence and domicile rules for non-residents and to the remittance basis of taxation. Until full guidance on these changes is published, HMRC has published a series of FAQs, including questions posed by members of the public and practitioners. A number of further questions were published during February [...]
Employer FAQ – P45 and P46 Procedures
Monday, December 22nd, 2008HMRC questions and answers (Part 2) (Reproduced from the December 2008 issue of Notes for Payroll Software Developers. The use of “we”, “us”, “our” etc in the answers applies to HMRC.) I’ve received a P6 notice of coding for a new employee before the P46 has been sent. Do I still need to send it? [...]
PAYE Procedures – P45 received after receiving P6 coding notice
Monday, November 24th, 2008HMRC has made a change to its instructions on handling a P45 Part 3 that is provided by a new employee after the employee has completed a form P46 and the tax office has issued a P6 coding notice. The form should still be destroyed and none of the figures provided by the previous employer [...]
Employer FAQ – P45 Procedures for Starters
Monday, November 3rd, 2008What procedures must be followed when applying the details from a P45 for a new employee? (Part 3) Part 1 of this Employer FAQ considers the checks that an employer must make to the first six of the seven items that appear on Part 2 of a form P45 that is provided by a new [...]
Employer FAQ – P45 and P46 Procedures
Monday, October 6th, 2008HMRC questions and answers (Reproduced from the September 2008 issue of Notes for Payroll Software Developers) 1. I submitted a P45(3) to HMRC that included incorrect pay and tax details – what should I do? You should include the correct pay and tax on your P11 Deductions Working Sheet but notify HMRC of the error [...]
