Payroll insight
9. Not paying for additional time worked such as time spent clearing security checks once a worker’s shift has finished – This will also include time spent ‘clocking on/off’ as well. ... any time which the worker 10. Including elements of pay that don’t count towards minimum wage such as tips and the premium element of pay associated with shift premium – You would only count the basic pay rate for hours worked for overtime, rather than ‘time and a half’, etc. And finally… In a very recent NMW case (February 2019), Middlesbrough Football Club has been cleared of failing to pay some of its staff the minimum wage. The Championship club appealed against an employment tribunal ruling that actually spends doing the work when on-call...
count towards NMW where the employer provides suitable facilities for sleeping and the employee is not expected to be disturbed. Payment for time spent sleeping will count towards the NMW where suitable sleeping arrangements are not provided, or where there is a reasonable chance that the employee will be expected to be disturbed. The notorious Mencap case, dating from July 2018, confirmed this point. However, if the Supreme Court considers the appeal being made, it might issue a judgment which changes the circumstances in which NMW is due for sleep-in shifts. Any judgment is unlikely to be issued until 2020. It is important to note that the NMW may also apply in cases where an employee is paid for being on ‘standby’, where the worker is required to be at a particular location during a particular time. If the worker is permitted to remain at home whilst waiting for work, then employers would not need to include this waiting time in their NMW calculations, although they would still need to factor in any time which the worker actually spends doing the work when on-call.
the club’s decision to deduct the cost of workers’ season tickets directly from their wage packet resulted in them receiving less than stipulated minimum. However, the club has successfully had the ruling overturned after proving the staff had requested the deduction to help spread the payments for the season tickets. HMRC spokesperson defended its decision to pursue the case. He said: “HMRC is unapologetic in its enforcement of national minimum wage for workers and will ensure that we do everything we can to get people the money that they are legally due. NMW legislation is protective legislation – no worker can agree to receive less than the relevant NMW rate. “The legislation does not draw a distinction between breaches arising from uncertainty or mistake and deliberate underpayment which means HMRC has no discretion to make these distinctions either. Employers are either compliant and pay their workers correctly, or they do not.” n The national minimum wage is a very complex area and professional advice should be sought, where there is any doubt.
P11D, expenses and benefits
One day
Designed to give delegates clarity and confidence about how to process the P11D, P11Db forms, PAYE Settlement Agreements (PSA) and net to gross calculations.
This course covers: ● Statutory requirements and implications ● Common errors when calculating company cars and fuel ● Childcare ● Beneficial loans ● Relocations ● Travel and subsistence expenses
● Vouchers / credit cards / tokens ● Gifts and awards ● Retirement benefits ● Salary sacrifice and tax / NICs changes from April 2017 ● Flexible benefits schemes ● Pay As You Earn (PAYE) settlement agreements ● Taxed award schemes ● Grossing up from net payment
● Other expenses ● Entertainment ● Telephones ● Subscriptions
● Key forms and dates ● Penalties and fines
Book online at cipp.org.uk or email info@cipp.org.uk for more information.
cipp.org.uk CIPP_UK cip .org.uk @CI P_UK
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| Professional in Payroll, Pensions and Reward |
Issue 50 | May 2019
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