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SShPL and SShPP as the plan is to take the leave and pay before the mother leaves? A: If the partner is eligible for SShPL at the time of employment, then potentially s/he is entitled to SShPP if the employee curtails her right to SMP. The mother will still be entitled to SMP after the employment has ended if she does not work for another employer after the baby is born and she has not curtailed her right to SMP. Q: Are fuel cards a taxable benefit that can be administered through payroll? Do all benefits have to go through payroll to be reported in the full payment submission (FPS), and is it compulsory to payroll? A: If an employer wants a benefit to be reported via FPS you would do it through agreement to payroll benefits, but it is not compulsory to payroll benefits at this point. If you want to tax this via the payroll it would be payrolling and the employer must register with HMRC to do this before the start of the tax year. Where you want to payroll a benefit which hasn’t been agreed before the start of the tax year HMRC may give approval to informally payroll benefits, but you will still have to complete a P11D return. This link explains that you may be able to get agreement to informally payroll: http://bit.ly/2GrL6yN. This an extract from the page for clarity: “If you miss the registration deadline, you cannot payroll benefits until the following tax year unless you have a valid reason, when HMRC may agree that you can informally payroll. You must still complete form P11D at the end of the tax year and mark each P11D ‘Payrolled’. This stops HMRC collecting tax that has already been deducted from your employees.” n Correction Please note the following correction to the last question/answer on page 9 of Issue 52. Q: An employee who turns 21 on 15 July will be paid earnings on 26 July. At what point does the class 1 NICs category change? A: The relevant trigger is the employee’s age on payday. In your example, the employee turns 21 before payday, so the NICs category should be changed from M to A and class 1 NICs applied for both the employee and the employer.
any impact on the MA that is received from the Department for Work and Pensions (DWP) / Jobcentre Plus. The employee should inform the DWP/Jobcentre Plus of the dates of the KIT days. Just as with SMP, if the number of KIT days exceeds the maximum ten allowable, the employee will lose some of her MA. The employee and employer should agree what the rate of pay will be for the work done on these KIT days and the employer should pay at least the appropriate national minimum wage or national living wage rate for hours worked during a KIT day. Q: Please can you help with queries for homeworkers who claim expenses, as I have been asked whether the employer must reimburse additional household expenses? A: It is the employer’s decision as to what they pay or reimburse, but there are statutory rules as to what should be subject to tax and NICs. If, for example, broadband is already in place that the employee pays for, it would be counted as a benefit if the employer reimburses part or all of it. If there isn’t any broadband in place and the employee requires this to do their job, then it could be exempt. There is a flat rate that the employer can pay each week or month. This is £4 per week or £18 per month. If this is used the employer doesn’t have to provide evidence to justify the amount paid. Q: One of our employees is currently on adoption leave and also awaiting a further placement confirmation. This means there will be overlapping statutory adoption pay (SAP). Will the employee be entitled to twenty KIT days? A: The employee may be entitled to two lots of SAP, but only if there are different matching certificates. They would end one period of SAL (statutory adoption leave) and start another. Therefore, in each period they could have ten KIT days, but they couldn’t save KIT days from the first period and use them in the second period of SAL. Q: An employee has requested statutory shared parental leave (SShPL) and pay (SShPP), but the mother (not our employee) has a fixed-term contract which will end before her full SML has ended. Will the partner be entitled to
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| Professional in Payroll, Pensions and Reward |
Issue 53 | September 2019
*correct at time of publication
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