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PAYE
RTI and Annual PAYE Schemes
HMRC have clarified the criteria for registering a PAYE scheme as an annual scheme. An annual scheme must meet all of the following requirements: all the employees are paid annually all the employees are paid at the same time/same date the employer is only required to pay HMRC annually Meeting the annual PAYE scheme criteria [...]
Government Responds to Review of Pensioner Taxation
In 2011, HM Treasury asked the Office of Tax Simplification (OTS) to look at simplifying the system for the estimated 5.6 million people of pensionable age who pay tax. In March 2012, the OTS published the first stage of their review and identified a number of issues for further review and consideration: Simplification of the [...]
RTI – The continuing saga – Part 2 – Out of Synch Payrolls
Employers are required to report PAYE in real time under RTI. As such the Full Payment Submission must report the correct payment date, in other words the date on which employees are paid. The date that the payroll was run is not the payment date unless they are the same. It has become apparent that [...]
Appendix 4 Agreements
From 06 April 2013, short-term business visitor arrangements have been updated and employers may need to apply for a new agreement with HMRC. EP Appendix 4 arrangements apply to short-term assignment employees who have not become UK tax resident or, if resident, are covered by a Double Taxation Treaty. In these circumstances, an EP 4 [...]
HMRC’s Basic PAYE Tools
HMRC have published guidance for employers who are receiving error messages when trying to send their RTI submissions through HMRC’s Basic PAYE Tools (BPT). See ‘Further Information’ for a link to the error messages and HMRC’s guidance. The next piece of information is for RTI Pilot employers that were planning to use BPT to submit [...]
Real Time Information and P45s and P46s
HMRC issued a statement on their Website in the middle of last week in response to a number of queries they had received from employers who were trying to submit P45s and P46s but were getting rejection messages. This message gave error code 7818 and stated ‘This PAYE In-Year Movement submission cannot be accepted as [...]
Don’t Forget – HMRC Bank Details Change
This is just another reminder that HMRC have advised that all, PAYE, Class 1 National Insurance Contributions and CIS payments should be paid to their Cumbernauld Accounts Office from April 2013. This will be for all payments effective Month 01 of the 2013/14 tax year, i.e. the first payment due for the new tax year. [...]
Don’t Forget – HMRC Bank Details Change
This is just another reminder that HMRC have advised that all, PAYE, Class 1 National Insurance Contributions and CIS payments should be paid to their Cumbernauld Accounts Office from April 2013. This will be for all payments effective Month 01 of the 2013/14 tax year, i.e. the first payment due for the new tax year. [...]
Online Expenses and Benefits Forms
HMRC have announced that it has started to provide both employers and agents and additional method of reporting year-end benefits and expenses. These are Web-based forms which, according to HMRC, will be most useful for small to medium-sized employers. Initially, two forms will be available, though more will be available as they are developed: [...]
Class 2 NICs Underpayments Through the Tax Code
From 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 [...]
RTI Countdown
From 06 April 2013, most employers will have to start reporting payroll information in real time. In their informal communication to employers, HMRC provided links to the Business Readiness Checklist. This will help employers ensure that they are ready for reporting in real time from the first payday [...]
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 [...]
Year-End – RTI Pilot Employers
In the instance that an employer has entered the RTI pilot, HMRC have issued guidance for ending the tax year 2012/13. Simply, HMRC have to be notified that the employer has finished tax year processing for the PAYE scheme on the PAYE scheme’s final submission of the tax year. At this time, the employer will [...]
RTI Countdown, RTI and the Starter Declaration UPDATE 2, The Learn Centre Annual Conference 2013, Jersey Minimum Wage April 2013 and Guernsey Minimum Wage 2013 Consultation
The broad definition of change is the act of making something different. In payroll and HR, we are used to change, as we know that, in the workplace, change is necessary in many instances to ‘keep up with the times’, changing practices and legislation. As employers, generally, we take this in our professional stride, recognising [...]
HMRC’s Basic PAYE Tools Upgrade (2012/13)
HMRC have advised that the latest update of the Basic PAYE Tools (BPT) has been released. BPT can be used by employers with nine or fewer employees. This update will allow 2012/13 non-RTI employers to submit their Employer Annual returns, forms P14 and P35. Comment Employers that are in the RTI Pilot should carry on [...]
The Employer Payment Summary and ‘Split’ Payrolls
An emerging picture could be a concern to employers who have a single PAYE scheme Reference payroll that is split between two, or more, locations. For example: The main payroll is processed in-house, however, the expatriate employees on the payroll are processed externally by accountants For confidentiality reasons, the employees’ payroll is processed [...]
RTI Countdown
Less Than 8 Weeks To Go! From 06 April 2013, most employers will have to start reporting payroll information in real time. In communication from the Software Developer Support Team (SDST), HMRC confirmed to software developers that they are writing to all employers this month about their obligation to report in real time from the [...]
Class 2 National Insurance Contributions Underpayments
Section 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 [...]
OTS Final Report on Review of Pensioner Taxation
On 11 July 2011, HM Treasury asked the Office of Tax Simplification (OTS) to look at simplifying the system for the estimated 5.6 million people of pensionable age who pay tax. Specifically, the remit was to identify the parts of the tax system that caused the greatest difficulty, especially where pensions are received from multiple [...]
Payments to HMRC from 2013/14 Tax Year
In an update to the Website, HMRC have advised that all PAYE, Class 1 National Insurance Contributions and CIS should be paid to their Cumbernauld Accounts Office from April 2013. This will be for all payments effective Month 1 of the 2013/14 tax year. The bank account details that must be used, if paying electronically [...]
