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NIC
Class 1A National Insurance Reference Checker
Tuesday, June 11th, 2013Remember that Class 1A National Insurance Contributions (NICs) are due for payment by 19 July 2013. If making the payment electronically, funds must be cleared in HMRC’s account no later than 22 July 2013. See the below links on how to pay Class 1A NICs. Also, when making the payment of Class 1A NICs, the [...]
Class 2 NICs Underpayments Through the Tax Code
Tuesday, April 9th, 2013From April 2014, HMRC will have the power to collect underpayments of Class 2 National Insurance Contributions through the tax code. Previously, this power had only been used to collect Self-Assessment debts or Tax Credit overpayments. HMRC have advised that they have commenced sending payment requests to people that have underpaid Class 2 [...]
Class 2 National Insurance Contributions Underpayments
Tuesday, January 29th, 2013Section 684 of the Income Tax (Earnings and Pensions) Act 2003 was inserted by the Finance Act 2009 to allow HMRC to collect small debts through the PAYE system, i.e. via the tax code. To date, this has been mainly used for the collection of a Self-Assessment debt or Tax Credit overpayment. This is to [...]
Deferred National Insurance Contributions
Tuesday, January 22nd, 2013In its Agent Update No. 33, HMRC have advised that they are changing the process for the renewal of deferred applications for Class 1, 2 or 4 National Insurance Contributions (NICs) for 2013/14. By way of a reminder, if an employee has more than one job and believes that they will earn over the Upper [...]
Income Tax (Exemption of Minor Benefits (Amendment) Regulations 2012
Thursday, July 19th, 2012We have previously reported that the current tax and NICs exemption on the provision of a meal by the employer to the employee on a ‘cycle to work’ day is to be abolished. This was recommended by the Office of Tax Simplification’s review and the subsequent consultation ‘Abolition of 36 tax reliefs’. We also reported [...]
The Post Office and Government Departments
Thursday, July 19th, 2012Last year, we advised that the Post Office had entered into a Proof of Concept trial that involved the provision of a ‘Check, Validate and Send’ service in respect of new applications for National Insurance Numbers. This replaced the existing Jobcentre ‘Evidence of Identity’ interview. We have not been provided with any feedback on the [...]
HMRC and BusinessLink Calculator Tools
Sunday, July 1st, 2012We have had some queries about the HMRC Website’s calculator tools, which will calculate or check various payroll-related items. Some of these, are now located on the BusinessLink Website. You may find the following calculators helpful with your day-to-day processing: Tax and National Insurance PAYE Tax Calculator (HMRC) National Insurance Calculator (HMRC) National Insurance Calculator [...]
Class 1A National Insurance Reference Checker
Saturday, June 30th, 2012Remember that Class 1A National Insurance Contributions (NICs) are due for payment by 19 July 2012. If making the payment electronically, funds must be cleared in HMRC account no later than 22 July 2012. See the below links on how to pay Class 1A NICs. Also, when making the payment of Class 1A NICs, the [...]
PAYE Settlement Agreement (PSA) Reference Checker
Saturday, June 30th, 2012Whilst talking about Class 1A, it is appropriate to talk about Class 1B as well. Remember that Class 1B National Insurance Contributions (NICs) are due for payment by 19 October 2012. If making the payment electronically, funds must be cleared in HMRC account no later than 22 October 2012. The below link allows you to [...]
National Insurance Changes – Employees coming from or going to Norway, Iceland or Liechtenstein
Friday, June 29th, 2012HMRC advise that, effective 01 June 2012, two existing EC Regulations (883/2004 and 987/2009) will apply to employees moving to / from Norway, Iceland and Liechtenstein. These Regulations affect the National Insurance Contribution liabilities of workers moving between Member States. Briefly, one of the rule changes means that if an employee is working in the [...]
NI Scheme for Lecturers and Teachers Regulations
Tuesday, March 27th, 2012In certain circumstances, the Social Security (Categorisation of Earners) Regulations 1978 and the Social Security (Categorisation of Earners) (Northern Ireland) Regulations 1978 requires that a self-employed lecturer, teacher, instructor or similar be treated as an employee for NICs purposes. As we have discussed before, this created an anomaly between the tax and NICs treatment for [...]
Lecturers, Teachers and Instructors – Complicated and Confusing NICs Treatment to be Repealed
Saturday, February 18th, 2012In certain circumstances, the Social Security (Categorisation of Earners) Regulations 1978 and the Northern Ireland equivalent requires that a self-employed lecturer, teacher, instructor or similar be treated as an employee for NICs purposes. The historic reasons for this are that the working conditions of the self-employed person are similar to those of the employed person. [...]
National Insurance ‘Holiday’ Unsuccessful
Friday, January 13th, 2012Prime Minister David Cameron has conceded that the Regional Employer NICs Holiday for New Businesses scheme announced in the Government’s June 2010 Budget, has not had the expected take-up. This scheme, available for the qualifying period 22 June 2010 to 05 September 2013 gives a Secondary NICs ‘holiday’ to new businesses which are set up [...]
Employment status of Lecturers, Teachers and Instructors
Friday, October 14th, 2011HMRC 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) [...]
Draft NICs rules for “disguised remuneration” published
Saturday, September 3rd, 2011The Class 1 NICs rules for handling liabilities for disguised remuneration are almost identical to the PAYE rules. The new legislation, effect from April 2011, that requires money, loans and assets provided in specific situations through third parties to be taxed under PAYE, has been covered in some detail in a recent article. Such benefits [...]
Potential overpayments of Class 1A NICs
Friday, March 4th, 2011The Income Tax (Earnings and Pensions) Act 2003 (ITEPA) makes provision for employees, who have received benefits that have both private and business use and those benefits have been reported in full to HMRC on form P11D, to claim a deduction from earnings, i.e. claim tax relief, in respect of the amount relating to the [...]
Regional Employer NICs Holiday
Friday, March 4th, 2011HMRC is sending an End of Year Return to all employers who have successfully applied to operate the NICs Holiday. They must be completed and submitted by 19 May, the normal deadline date for PAYE annual returns. Detailed guidance is to be provided on the Business Link website before the end of March. Further Information: [...]
Contract variations, sickness absence review, time to train, 2011/12 coding notices, NICs toolkit, P60s, Blue Badges, cars for disabled employees.
Friday, February 25th, 2011When an employer makes a change to contractual terms and conditions, can an employee later argue that the changes does not apply? Yes – in the circumstances described in the recent Morgan v Network Europe Group case. But the situation can be prevented, as the EAT reveals. An important Government announcement this week is that [...]
NICs and Statutory Payments Toolkit
Friday, February 25th, 2011In recent months, HMRC has begun to provide “toolkits” for tax agents and advisers to help them check that returns are completed correctly, focus on key areas of potential error, and meet the “reasonable care” requirement. A particularly useful toolkit, on Expenses and Benefits from Employment, was issued in October 2010. One of the latest [...]
Draft PAYE forms for 2011/12
Friday, January 28th, 2011HMRC has released draft versions of form P11, P32, P14 and P60 for the 2011/12 tax year for the use of payroll software developers. They show the way in which the NICs-related changes are being handled on these paper documents. The split of NICable earnings (columns 1a to 1d), as already announced, uses the lower [...]
