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NICs
RTI Reporting Easements for Small Employers
In our Budget Newsletter last week, we advised that HMRC have announced that, until 05 October 2013, employers with fewer than 50 employees who will have difficulty meeting the ‘on or before’ reporting requirement can report at the time of their regular payrun, as long as this is before the end of the tax Month [...]
Consultation on Improvements to Auto-Enrolment
On 25 March 2013, the Department of Work and Pensions (DWP) announced a Consultation on ‘technical changes’ to improve the Auto-Enrolment process. Draft legislation was published alongside the Consultation with the intention that these are effective from April 2014. However, the primary legislation that is necessary will be included in the Pensions Bill 2013 meaning [...]
Budget 2013 – National Insurance Contributions
Employment Allowance Effective April 2014, all businesses and charities will be eligible for an Employment Allowance in the sum of £2,000.00, which will be offset against their secondary NICs liability. The intention is that this will primarily help the small employer. The Government is going to consult further on this. Contracting-Out As a result of [...]
The Importance of Using Correct Payment Reference Numbers
HMRC are contacting some employers to remind them of the importance of sending their payment using the correct reference number. These employers will be those who have made payments using the BACS, Faster Payments and CHAPS methods and may have omitted the reference, or used it incorrectly in the past. When making the monthly [...]
The Learn Centre’s Annual Conference
Maybe I am a bit ‘old school’, however, when a product or company makes a claim, this should be backed up by actions. In short, it needs to do what it says on the tin. Of course, I am making an obscure reference to the shocking news last week that some meat products were not [...]
RTI – Pilot Update
HMRC have published their latest Pilot Employer Update, providing insights into how the pilot is progressing and sharing information on lessons learned. The things that I have picked up from this update, some of which you may be aware of from payroll-related social media sites: The Employer Payment Summary (EPS) The EPS has [...]
PAYE Settlement Agreement (PSA) Payments
A PSA is an agreement with HMRC where the employer meets the PAYE tax and National Insurance Contributions (NICs) liabilities on expenses and benefits on behalf of the employee. This will be in the instances where the expense or benefit is minor, irregular or where it is impractical to operate PAYE. In their latest informal [...]
HMRC Targets Freelancers
The Government and its Ministers have been very visible and vocal in their desire to target ‘tax dodgers’ – people who are not paying the tax that they should be paying by using tax avoidance schemes, both legal and illegal, or just plain tax evasion. Employment groups that have been targeted so far include everything [...]
Income Tax (Exemption of Minor Benefits (Amendment) Regulations 2012
We 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 [...]
Tax Return ‘Amnesty’ from HMRC
Under a new initiative from HMRC, taxpayers who have not completed Tax Returns for 2009/10, or earlier, are being offered an amnesty from the increased penalties that they would otherwise pay for late filing and payment. The Tax Return Initiative, launched last week, is open to taxpayers until 02 October 2012 with the promise that [...]
Auto-Enrolment Earnings Trigger and Bands in Legislation
Parliament has approved, and the Pensions Minister Steve Webb has signed, the necessary Order which makes the required changes to the Pensions Act 2008, confirming the Earnings Trigger and the Qualifying Earnings Bands. This Order came into force on 15 June 2012 and will applies to the first year of auto-enrolment. Section 14 of the [...]
P11D Frequently Asked Questions
What are the deadlines for P11D processing? Simply, The Income Tax (Pay As You Earn) Regulations 2003 (Regulation 85) require that the employer is required to submit all relevant and completed P11D and P9D returns to HMRC by 07 July each year. In practice, this means that they must be received at HMRC on or [...]
P11D FAQ – What makes a van a van?
This is a common question, as employees and employers alike seek to reduce the taxable benefit and the Class 1A National Insurance Contributions liability. For HMRC’s definition, it is necessary to revert to the governing legislation, which is the Income Tax (Earnings and Pensions) Act 2003; specifically Section 115 entitled meaning of ‘car’ and ‘van’. [...]
How Many Years do we have to keep our Payroll Records for?
When requested by HMRC, Regulation 97 of the Income Tax (Pay As You Earn) Regulations 2003 requires employers to ‘produce’ their ‘PAYE records’, other than those that they have already been sent, at a ‘prescribed place’. This is for a period of not less than three years following the tax year to which they relate. [...]
Q&A on Payment of Share-Based Earnings
HMRC have published their Q&A document on what the employer needs to do in respect of share-based payments made after 06 April 2012 and after a P45 has been issued. These could be in relation to earnings in respect of: Securities Interest in securities, and Securities options These are replicated below: Q1 How should tax [...]
Revised RTI Regulations Published
Back on 14 November last year, HMRC published draft Regulations relating to RTI. These outlined the employer’s obligations when they moved from being a ‘normal’ employer to an RTI-employer, i.e. one that is submitting data at or before the time the employee is paid under real time exchange. The Regulations are necessary for PAYE, NICs [...]
Childcare Vouchers and the Basic Earnings Assessment 2012/13
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 [...]
The Learn Centre Payroll, HR and Managing People Conference
The setting was truly beautiful – the lovely, spacious and welcoming Menzies Welcombe Spa and Golf Club in Stratford-upon-Avon. Plus, the sun came out for us, so as well as interesting workshops and plenary sessions; we could wander the grounds and soak up the sun as well! As you can imagine, there was plenty to [...]
RTI – End of Year Processing
One of the concepts of RTI is the regular flow of information to HMRC in the form of the submissions. For most employers, this will be: The regular Full Payment Summary (FPS) at, or before, the net pay is paid to the employee, and The Employer Payment Summary (EPS), sent before the monthly or quarterly payment [...]
Employer Bulletin No 40
HMRC’s February 2012 Issue 40 is an excellent and comprehensive compilation of facts and information that we need to be aware of on a day-to-day basis. This issue covers articles and tables on: Income tax rates and bands for 2012/13 NICs rates and bands for 2012/13 Student Loan amended threshold for 2012/13 Statutory rates for [...]
