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tax code
Trivial Commutation Tax Code Changes
Tuesday, December 4th, 2012Sections 636B and 636C of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) specify that some lump sums paid from registered pension schemes are treated as taxable pension income. These trivial commutation and similar lump sum payments include: Trivial Commutations payments (and death payments) Winding-up lump sums (and death payments) Commuted equivalent [...]
HMRC – 0T Reversal Draft Regulations Published
Saturday, January 21st, 2012In 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. [...]
2012/13 Tax Year Coding Notices
Friday, January 13th, 2012The Learn Centre is focused on education and communication. It is our business and both of these are essential in our day-to-day professional lives. Also, increased and improved education and communication can reduce the pressures on both the payroll and HR departments. In this spirit, we are passing on information on the HMRC Website, designed [...]
HMRC in 0T Reversal
Saturday, January 7th, 2012For the tax year 2011/12, HMRC changed the tax code that applied to payments made to employees where the P45 had been issued – ‘payments after leaving’. From this tax year, we have had to make these payments against tax code 0T on a non-cumulative basis rather than the previous codeBR. This was with the [...]
Collecting tax debts through the tax code
Saturday, July 2nd, 2011HMRC responds to feedback on proposals to make greater use of “coding-out” to recover tax debts. In April 2011, HMRC issued a Technical Discussion Paper in preparation for finalising the statutory changes required to allow tax debts of up to £3,000 to be collected automatically under PAYE by means of a tax code adjustment. This [...]
Collecting tax debts through the tax code
Monday, April 18th, 2011HMRC plans to start automatic collection of tax debts under PAYE from April 2012. HMRC has issued a Technical Discussion Paper in order to finalise the statutory changes required to allow tax debts of up to £3,000 to be collected automatically under PAYE by means of a tax code adjustment. This process, known as “coding [...]
Another, last-minute change to the new 0T tax code rules
Friday, April 8th, 2011Tax code BR is to be used instead of 0T for payments after termination in the form of employment-related securities or securities options. Regulations requiring all termination payments made after form P45 has been issued to be taxed using code 0T have already been made and took effect from 6 April 2010. However, as a [...]
P11D Working Sheets, qualifying childcare, tax simplification, NEST, credit card fees, 0T legislated, SMP compensation rate, Worker Registration Scheme, P60s, and so many forum questions.
Friday, March 18th, 2011This week we are back to normal with (too) many news items. Of particular interest and importance are the two reports from the Office of Tax Simplification, which resurrect a number of proposals from earlier years, some of which may well find their way into the coming Budget. The PAYE Regulations have been updated with [...]
Introduction of the 0T tax code
Friday, March 18th, 2011The use of 0T and D1 as tax codes has been formalised by a number of changes and additions to the Income Tax (Pay As You Earn) Regulations 2003, all of which are effective from 6 April 2011. Code 0T operates effectively as a suffix tax code, without allowing for any personal allowances. Code D1 [...]
Coding notices for the 2011/12 tax year
Friday, February 25th, 2011The following are extracts from the latest weekly informal updates (dated 11 and 18 February) from HMRC to employer representatives. P9s – Annual coding message for employers We have recently begun the annual process of sending out Coding Notices (P2) for the 2011-12 tax year to individuals. You may well get questions from your employees [...]
Coding notices for the 2011/12 tax year
Friday, January 21st, 2011The following is an extract from the latest weekly informal update (dated 14 January) from HMRC to employer representatives. We are about to start the annual coding exercise to set the tax codes for the 2011-12 tax year. You will remember that that during the 2010-11 annual coding exercise at the beginning of 2010 there [...]
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 [...]
One HMRC telephone number for employee tax enquiries
Friday, December 17th, 2010Employees now have a single telephone number to use in order to discuss their tax queries with HMRC – 0845 300 0627. It replaces more than 60 old numbers, which will soon be taken out of service. Employers can also use this number, for example to confirm an employee’s tax code. But the Employer Helpline [...]
Consultation on draft legislation for Finance Bill 2011
Friday, December 17th, 2010The policy of the Coalition government is to confirm most of its new tax measures at least three months before the introduction of a Finance Bill. The draft text of the legislation that will appear in the Finance Bill 2011 was published on 9 December and is open for technical comment until 9 February 2011. [...]
Ireland: Employer copy of Tax Credit Certificates
Friday, December 17th, 2010The employer’s copy of employee Tax Credit Certificates (P2Cs) will issue through the Revenue On-Line Service by 15 December 2010. For Employers/Agents not registered for ROS, these certificates will be sent by post during the week commencing 13 December 2010. Revenue is asking employers, and agents who carry out payroll functions on behalf of employers, [...]
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. [...]
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 [...]
New guidance on Income Payment Orders
Tuesday, December 7th, 2010The Insolvency Service (part of the Department for Business, Innovation and Skills) has published comprehensive guidance on Income Payment Orders. These are a type of court order and must be processed by payroll offices in the relatively rare event that one is received. They involve payments by a person who is subject to a bankruptcy [...]
