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Pensions
HMRC Speeds Up, DWP Pensions Survey 2012, DWP – ‘Reinvigorating Workplace Pensions’, Trivial Commutation Tax Code Changes, RTI – ‘Penalties’ Revealed, Employment-Related Shares and Securities, Advisory Fuel Rates – December 2012 and HMRC and Tax Agents
This week’s Newsletter has a strong pensions feel about it. Though I do recognise that the topic is not regarded with the importance it deserves, both professionally and personally, pensions are something that will affect us all at some time or other in our lives, so I would encourage you to read the articles. This [...]
Trivial Commutation Tax Code Changes
Sections 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 [...]
Revised Implementation Proposals for Workplace Pensions Reform – the Government Responds
On 23 March 2012, the Government launched a consultation following Steve Webb’s announcement in November 2011 that employers with fewer than 50 workers would be given later Staging Dates. This is the date at which employers must commence Auto-Enrolment responsibilities, as laid down by the Pensions Act 2008. Overall, the consultation addressed these issues: The [...]
State Pensions Reform White Paper Delayed
Budget 2012 confirmed that the Government intends to make two further reforms regarding State Pension and the age at which it will become payable: Create a ‘single-tier’ pension, merging the current Basic with the State Second Pensions (S2P) Introduce a mechanism to ensure that the State Pension age takes into account future changes in longevity [...]
The Queen’s Speech
The State Opening of Parliament was last held in the autumn of 2010. The Fixed Term Parliament Act 2011 gives the UK five 12-month parliamentary sessions, which start and end in the spring of each year; therefore, there was no Opening in that year. The Opening for the 2012/13 session was on 09 May 2012. [...]
HMRC and Pensions Salary Sacrifice Schemes
There are many pension schemes that offer pension solutions to its employees via the use of salary sacrifice. This is where the employee and employer enter into a legally-binding contractual change to the terms and conditions of employment whereby a sum is given up in return for contributions being made to a pension scheme. Tax [...]
P35 Reminder, RTI Goes Live, Bringing Forward the Staging Date, HMRC Objectives 2012/13 and Budget 2012 – Pensions
2012 is the Chinese year of the Dragon. According to the Website I visited, some of the Dragon’s traits are that they are driven, unafraid of challenges and willing to take risks. They are passionate in all that they do and do things in a grand fashion. This seems perfectly fitting for this new payroll [...]
The ‘Granny Tax’
As we reported on 13 March 2012, The Office of Tax Simplification had previously identified the age-related allowances as a source of confusion and complexity. Further, the Coalition’s increases to the lower Personal allowance were reducing the difference between the lower and age-related amounts. In a move towards a universal tax allowance system, one of [...]
Pensions tax relief – Budget Update
Legislation will be introduced in Finance Bill 2013 to amend the rules which currently allow employers to pay pension contributions into their employees’ family members’ pensions as part of their employees’ remuneration package to remove the tax and NICs advantages from these arrangements. A regulation making power will also be introduced to allow changes to [...]
Pensions and Auto-Enrolment, Penalty Notices, Basic PAYE Tools, Tax Relief Bills, Smartphones, Case Law Corner, RTI Needs You (Still) and the NI Verification Request
This week, I send greetings from the lovely Stratford-upon-Avon, where we are holding The Learn Centre’s 18th Annual Conference. I am looking forward to being there with learned colleagues and friends. The Conference always provides essential updates and allows the sharing of information and the chance for some social and professional networking. There are some [...]
DWP – New Timetable Clarifies Auto Enrolment Dates
The Employers’ Duties (Implementation) Regulations 2010 provides how the auto-enrolment responsibilities under the Pensions Act 2008 will apply to employers. Specifically, it outlines the auto-enrolment staging dates. On 25 January 2012, the DWP published a revised timetable of staging dates for auto-enrolment. This was not altogether unexpected, given their announcement in November that the dates [...]
NEST Restrictions may be lifted
Pensions minister Steve Webb is considering lifting the statutory restrictions on NEST in response to number of competitive schemes entering the market. Following a question from Labour spokesman Greg McClymont in the the House of Commons this week, Mr Webb said: “Labour introduced these restraints, but the situation has moved on with unforeseen competitive developments [...]
Auto-Enrolment 2 – Consultation re Earnings Trigger and Earnings Band
These are two terms which require a brief recap: The Earnings Trigger is the level of earnings, at which, when reached by the employee, the employer is obliged to consider auto-enrolment into a qualifying pension scheme The Qualifying Earnings Band is the band of earnings on which the employee and employer will pay pension contributions [...]
Auto-Enrolment 3 – The Auto Enrolment Postponement Period
As discussed briefly above, auto-enrolment is required when jobholders’ earnings reach the Earnings Trigger. One issue that has been uppermost in professionals’ minds has been the issue of workers with fluctuating earnings. The employee is usually earning below the trigger, however, for one reason or another, exceeds it in one week or month – for [...]
Abolition of Contracting-Out on a Defined Contribution Basis
We have published this information before; however, the start of 2012 is a good time to repeat this as a reminder. Contracting-out of the State Second Pension (S2P) on a DC basis will be abolished from 06 April 2012. Contracting-out of the State scheme on a Salary-Related basis (COSR) is not affected. This has the [...]
Auto-enrolment Delay
Pensions Minister Steve Webb has confirmed that the Government is delaying pensions auto-enrolment for companies with 49 employees, or less. The original staging date, as outlined in the Employers’ Duties (Implementation) Regulations 2010, was to commence in April 2014, with all employers eventually being live in the scheme from 01 September 2016. However, the April [...]
Pensions Bill 2011 Receives Royal Assent
The Pensions Bill 2011 has completed its parliamentary stages in both Houses and was granted Assent by the Queen on 03 November 2011. We can now refer to this legislation as the Pensions Act 2011. Together with RTI, the provisions in the Pension Act will undoubtedly involve increased administration for employers. There are a number of areas [...]
Changes to State Pension Age
The Government announced last week that it had decided to delay the State Pension Age increase from 65 to 66 by 6 months for both men and women. The pension age for women will still increase to 65 by 2018, as planned, however, the increase to 66 for both sexes will be put back 6 months to [...]
Latest issue of HMRC’s Employer Bulletin published
The September 2011 issue of Employer Bulletin is available to download. The latest news and reminders for employers is available in the September 2011 issue of HMRC’s Employer Bulletin. Among the topics discussed are: the new Enhanced Recognition Scheme for Commercial Payroll Software an update of Real Time Information payment issues affecting employers of all [...]
HMRC announces new recognition scheme for payroll software developers
HMRC’s existing Payroll Standard Accreditation Scheme and Online Filing Recognition Scheme are to be replaced by a broader-based Enhanced Recognition Scheme. A new Enhanced Recognition Scheme for payroll software developers is to be introduced from 1 October 2011. The two existing schemes that it replaces, namely, the formal Payroll Standard Accreditation Scheme, which ensures that [...]
