Archives for Payroll

Budget 2018 Employment Taxes

Off-payroll working in the private sector The changes to IR35 that came into effect in April 2017 for the public sector will be extended to the private sector from April 2020. Responsibility for operating the off-payroll rules will be transferred from the individual to the organisation, agency or third party engaging the worker. Only medium and large organisations will be subject to this change. Employment Allowance The Employment Allowance provides businesses and charities with up to £3,000 off their employer NICs bill. Employer provided cars The scale of charges for working out the taxable benefit for an employee who has
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HMRC extends RTI late filing easement until April 2019

HMRC has extended the payroll Real Time Information (RTI) late filing easement until April 2019. Under RTI payroll obligations employers must submit details of payments made to employees on or before the day that wages are paid via a Full Payment Submission. The updated guidance extends the easement, introduced in April 2015 to April 2019. The easement applies where an employer’s FPS is late but all reported payments on the FPS are within three days of the employees’ payday. This easement applies from 6 March 2015 to 5 April 2019. However, HMRC go on to clarify that employers who persistently
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Off-payroll working in the private sector consultation

HMRC has launched a consultation on how to tackle non-compliance with the off-payroll working rules in the private sector and are asking for comments on the best way to do this. HMRC estimates only 10% of PSCs that should apply the legislation actually do so, and the the cost of this is projected to increase from £700m in 2017/18 to £1.2bn in 2022/23. This consultation provides an early evaluation of the public sector reform and invites responses on how best to deal with non-compliance in the private sector. This consultation considers a number of potential options for tackling the non-compliance
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200,000 receive back pay as HMRC enforce National Minimum Wage

BEIS and HMRC are urging underpaid workers to complain about National Minimum Wage (NMW) and National Living Wage (NLW) underpayments. Recent figures show that the number of workers receiving the money they are owed has doubled. During 2017/18, HMRC investigators identified £15.6 million in pay owed to more than a record 200,000 of the UK’s lowest paid workers. This is an increase on the previous years figures of £10.9 million for more than 98,000 workers. HMRC launched its online complaints service in January 2017 and believes this has contributed to the 132% increase in the number of complaints received over
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Spring Statement 2018 Employment Taxes

Employer provided cars The scale of charges for working out the taxable benefit for an employee who has use of an employer provided car are now announced well in advance. Most cars are taxed by reference to bands of CO2 emissions multiplied by the original list price of the vehicle. Currently there is a 3% diesel supplement. The maximum charge is capped at 37% of the list price of the car. In the current tax year there is a 9% rate for cars with CO2 emissions up to 50gm/km. From 6 April 2018 this will be increased to 13%, and
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Pensions Auto Enrolment to increase

Minimum pension contributions are set to increase from 6 April 2018 and again in 2019. Period Duration Employer minimum Total minimum contribution 1 Employer’s staging date to 5 April 2018 1% 2% 2 6 April 2018 to 5 April 2019 2% 5% 6 April 2019 onwards 3% 8% Contact us if you would like help with auto enrolment.  For those clients we undertake payroll administration for the contributions will be updated.
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Minimum Wage increases from 2018

The National Minimum Wage (NMW) and National Living Wage (NLW) are the legal minimum wage rates that must be paid to employees. Employers are liable to be penalised for not complying with the NMW and NLW rules. There are different levels of NMW and NLW, depending on age and whether the employee is an apprentice. The rates are due to increase from 1 April 2018 as shown in the following table:   Rate from 1 April 2017 Rate from 1 April 2018 NLW for workers aged 25 and over £7.50 £7.83 NMW main rate for workers aged 21-24 £7.05 £7.38
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Proposals to extend pensions auto enrolment to younger workers

The government has announced proposals to extend pensions auto enrolment to younger workers and to amend the way in which contributions are calculated. Under auto enrolment, employers are required to automatically enrol all eligible workers (generally employees) into a workplace pension scheme and pay a minimum contribution into their pension. Employees do, however, have the right to opt out of auto enrolment. Currently workers who are aged between 22 and the State Pension Age with earnings of £10,000 per annum are eligible to be auto enrolled. Younger employees and those who do not meet the minimum income requirement can opt
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Pension contribution increases and temporary staff

The Pensions Regulator is reminding employers that they need to comply with their auto enrolment duties with regard to pension contribution increases temporary staff. Automatic enrolment still applies to temporary staff this Christmas With the festive season fast approaching, employers may be planning to take on temporary staff to help their business survive the rush. Automatic enrolment applies to these employees in the same way as permanent employees, even if they will only be working for a short time. Employers will still need to assess temporary staff and auto enrol any eligible employees into a qualifying pension scheme. Once auto
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Budget 2017: Employment Taxes

Different forms of remuneration In the Spring Budget the government stated it wished to consider how the tax system ‘could be made fairer and more coherent’. A call for evidence was subsequently published on employee expenses. The government’s aim is to better understand the use of the income tax relief for employees’ business expenses. It sought views on how employers currently deal with employee expenses, current tax rules on employee expenses and the future of employee expenses. Following the call for evidence: The government announced that the existing concessionary travel and subsistence overseas scale rates will be placed on a
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