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P45 / P46
New P46 (Short) From HMRC
Monday, August 6th, 2012Last week, HMRC published their P46 (Short). As most employers are required to file online, it was unnecessary to have Section 2 (Employer Information). Therefore, this has been removed. The form can be used, like the existing P46, to gather information about a new employee who does not have a P45. Comment I don’t understand [...]
Mandatory online filing and payments extended to employers with 10 or more employees
Friday, January 28th, 2011Online filing of PAYE and PRSI forms P45 and P46, annual returns P30 and P35, and monthly payments of PAYE and PRSI became mandatory for most government bodies and many large employers in two stages, from January 2009 and January 2010. On 24 January 2011, Revenue published eBrief 04/11 Mandatory Electronic Filing and Payment of [...]
Questions from our forum 13/01/11
Thursday, January 13th, 2011Each 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 Posts: Backdating SMP If an employee has been on maternity leave, for around 6 months, but has continued to be paid her full salary as normal, for whatever reason, is [...]
Possibly HMRC’s final last words about tax code 0T….again!
Friday, December 31st, 2010Just when we thought we had all of the new uses for tax code 0T sorted out, HMRC issued an email apologising for an error is the guidance given in the latest Notes for Payroll System Developers. Both in HMRC’s correspondence with us and in the latest guidance for developers, we had been told that [...]
Possibly HMRC’s next last words about tax code 0T
Friday, December 17th, 2010In our article two weeks ago, we mentioned a number of situations where HMRC’s guidance on the use of tax code 0T from April 2011 needed clarifying in terms of whether it should be applied cumulatively or non-cumulatively. We have received replies from HMRC, as follows: Where box C of form P46 is selected by [...]
Consultation on PAYE Real Time Information proposals
Friday, December 10th, 2010HMRC received nearly 400 responses to the discussion document Improving the Operation of Pay As You Earn (PAYE) that was published last July. Nearly three-quarters of respondents who expressed a view were in favour of the Real Time Information (RTI) proposal and the Government has taken the decision to introduce it in stages from 2012. [...]
Matching Rules for 2010-2011 P14 information
Friday, December 10th, 2010The latest weekly informal update (dated 3 December) from HMRC to employer representatives provides information on two subjects. One of them is reproduced below; the other is a separate news item. We are introducing amended matching rules for 2010-2011 P14s to increase the number of these that successfully match to employment/pension records. Where there is [...]
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 [...]
HMRC’s final word on 0T tax code issues?
Tuesday, December 7th, 2010The latest weekly informal update (dated 26 November) from HMRC to employer representatives is one of three announcements that have been issued over the past week to explain the changes that are being made to the use of tax code 0T from April 2011. The others are two separate emails that were sent to payroll [...]
Erroneous reporting of employee deaths on form P45
Thursday, November 18th, 2010The latest weekly informal update (dated 12 November) from HMRC to employer representatives also includes the following important reminder about reporting the death of an employee on form P45. We have seen a few cases of P45s filed online where an employer has unintentionally reported a customer as deceased where this is not in fact [...]
This week: 0T again, pension age 66, illegal working, the LEL, scale rates for abroad, CD-ROM, the next Budget, Ireland social insurance
Friday, November 12th, 2010I do hope you’re not getting bored with these items about tax code 0T but, no sooner had we written to HMRC objecting to the P46 proposals than two new, equally puzzling uses for the code are announced, with inadequate explanation, errors and significant repercussions for payroll systems developers. So, as you will see from [...]
Further changes involving the use of tax code 0T! (Part 3)
Friday, November 12th, 2010There is nothing specifically to report yet on the issues we have raised about the proposed use of tax code 0T in the P46 box C situation. However, HMRC has now announced two further uses for the code from April 2011, both of which are equally inappropriate. The announcement was made first in HMRC’s weekly [...]
Questions from our Forum 15/11/2010
Friday, November 12th, 2010Each 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 Posts Contacting HMRC As an employer at some point you will need to contact HMRC to discuss PAYE. These days most contact is telephone driven and the first thing you [...]
Is 0T the appropriate tax code to apply when an employee checks Statement C? (Part 2)
Thursday, November 4th, 2010In last week’s newsletter we discussed HMRC’s intention to introduce, from April 2011, 0T as the tax code to apply instead of BR when box C of the P46 is checked. We also provided the text of a letter that we have sent to HMRC questioning whether this change achieves the objective of correctly taxing [...]
Further guidance from HMRC on tax relief restrictions on employer-supported childcare
Thursday, November 4th, 2010The following notes appeared originally in a newsletter in March 2010. They have been updated in line with newly published HMRC guidance for employers and employees. In September 2009, the Prime Minister, Gordon Brown, announced that the tax exemption for childcare vouchers would be phased out from 2011. Following widespread dissent, this decision was reversed [...]
Is 0T the appropriate tax code to apply when an employee checks Statement C? (Part 1)
Thursday, October 28th, 2010Readers may have noticed that there should have been a news item in last week’s newsletter, but it was inadvertently omitted. However, another week has given us the opportunity to consider more closely the implications of HMRC’s decision to require tax code 0T to be used instead of BR when a new employee checks Statement [...]
Change to Box C of P46 to recognise employees who are taxed at the higher and additional tax rates
Friday, October 22nd, 2010In a recent newsletter we referred to an announcement in the latest Notes for Payroll Software Developers that, from April 2011, tax code 0T would be an acceptable response to an employee checking Box C. Current PAYE rules require tax code BR to be applied in this situation, but not D0 in cases where it [...]
Questions from our forum
Wednesday, October 20th, 2010Each 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 Posts Alabaster and Total Pay Cuts We have an employee who is going on maternity leave shortly and the period of earnings that we need to look at to calculate [...]
How is a P45 form completed for a leaver?
Wednesday, October 20th, 2010Every employee who leaves, including those who say they are not going to work again, must be issued with a P45, except students who leave during the year and a valid P38(S) is in force employees for whom no tax has been deducted in the current tax year employees who are retiring from their employment [...]
Changes to P46(Car) reporting from April 2011
Wednesday, October 20th, 2010HMRC has published updated technical guidance for payroll system developers on expenses and benefits reporting, relating to online submissions of forms P11D, P9D and P11D(b) for the 2010/11 tax year, and form P46(Car) from the start of the 2011/12 tax year. There are no changes being made to P11D, P9D and P11d(b) reporting. The key [...]
