MY CIPP
The CIPP's Advisory Service team provides answers to popular questions
Court order deductions from payments after leaving Q: I have a query regarding court orders. I’ve always been under the impression that court order deductions are not to be made from payments after leaving, as these are post-employment. Employers are only required to make these deductions while somebody is employed. A client has asked me to deduct an order, in full, from an employee’s holiday pay (payment after leaving), as apparently this is what the council who issued the court advised. Our system doesn’t automatically do this, and we would have to override it. A: Attachment of earnings orders should only be applied during employment. Once the employment has ceased, the employer should notify the governing body accordingly. Please see the following guidance for different types of orders: “What legal responsibilities and duties does a DEA place on an employer? You have a duty to notify the DWP Debt Management in writing or by phone within 10 days of the date of the DEA notice: l when someone we have asked you to implement a DEA for does not work for you l when, and the date from which, an employee ceases to be in your employment If either of the above applies you will need to notify us in writing at the address shown at the top of the DEA notice letter, or by phone.” This is taken from Direct earnings attachment: A guide for employers , which can be found here: http://ow.ly/ poCJ50KRmUT. Guidance from Make debt deductions from an employee’s pay: Change of
circumstances (http://ow.ly/7BOe50KRn7q), states the below: “Change of circumstances Write to the Centralised Attachment of Earning Payments (CAPS) office within 10 days if the employee stops working for you.” Can you have a self-employed apprentice? Q: I wonder if you may be able to help with a query I’ve just received from someone in my office. They’ve asked if you can be a self-employed apprentice. I’m almost certain this isn’t possible and that an employment contract must be in place, to be an apprentice, but wanted to ensure I’m correct before I respond to my colleague. A: You’re correct. To be an apprentice, they must be on a contract for an apprenticeship. This is automatically considered a contract of employment and therefore, they’re classed as an employee. Deadlines for PSAs Q: Do you know if there’s a penalty if you don’t submit the pay as you earn (PAYE) settlement agreement (PSA) calculation to HM Revenue and Customs (HMRC) by 31 July? A: There are PSA deadlines for applications (5 July) and there are PSA deadlines for payment (19 October if non-electronically, 22 October if electronically). There’s no deadline for submitting your PSA1 but you should submit it as soon as you can, and definitely prior to payment becoming due. HMRC requests that the PSA1 is sent as soon as possible, so it can check the calculation before payment is
due, in case there are any errors which need rectifying. How do you treat P11Ds in TUPE scenarios? Q: Are we required to complete P11Ds for a client whose employees transferred under the Transfer of Undertakings (Protection of Employment) (TUPE) regulations to another company in November 2021? Once the employees transferred to the new company, the previous PAYE scheme was ceased. A: The number of P11Ds you need to submit depends on the type of change your business has experienced: Merger If your business has undergone a PAYE scheme merger and your employees receive company benefits, you must submit two P11D forms for each relevant employee: l one under the original PAYE reference for the period up to the merger date l one for the new PAYE reference from that date. A business merger doesn’t always result in a PAYE scheme merger. If your business has undergone a business merger, and the employees are still employed under the original PAYE scheme reference, only one form P11D is required. Succession If you contact HMRC and are told your business has undergone a succession, you must submit one form P11D under the new PAYE reference for each employee in receipt of company benefits. This must contain the
| Professional in Payroll, Pensions and Reward | October 2022 | Issue 84 8
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