PAYROLL NEWS
Payroll news
Supreme Court ruling on Harpur Trust v Brazel ruling ON 20 July 2022, THE Supreme Court issued its long-awaited ruling on the Harpur Trust v Brazel case. Harpur Trust’s appeal has been unanimously dismissed, meaning that the 52-week method is the correct interpretation of legislation concerning holiday pay. Therefore, no percentage method (12.07% or otherwise) should be used for the purposes of calculating holiday pay. Brazel was a part-time music teacher, who worked varying hours throughout the year. Her employer used the 12.07% calculation method to pay her when she took holiday. Brazel refuted this, as the legislation at the time was to use a reference period of 12 calendar weeks to calculate the holiday due. (This has since changed to a 52-week reference period.) The Court of Appeal found Brazel to be correct, and the Supreme Court has backed this judgment. Those processing payroll for casual workers, or workers whose pay fluctuates, need to be mindful of this ruling and ensure they proceed with paying holiday pay correctly and compliantly.
Introduction of digital PSA1 form WITHIN ITS Agent Update 98 , Her Majesty’s Revenue and Customs (HMRC) confirmed the creation of a new digital pay as you earn (PAYE) settlement agreement (PSA) form. The form has been created based on customer feedback and provides a more efficient submission route. HMRC has confirmed this is now its preferred method of receiving the PSA1 from employers. The benefits of using this method include: ● easy, standardised reporting ● improved accuracy ● speedier processing times ● fewer resulting queries. The Agent Update 98 can be located here: http://ow.ly/kgOR30sprmg, and the digital PSA1 form, here: http://ow.ly/KoT230sprmm.
HMRC health and social care levy tool launched
Increases to interest and inflation rates WE CONTINUE to see the cost-of-living crisis discussed in the media. On 20 July 2022, the Office of National Statistics released its monthly inflation statistics, to show that June’s consumer price index, or CPI, was at 9.4%. This is an increase of 0.3% from May to June 2022, following a 0.1% increase from April to May 2022. The June figure is the highest recorded annual inflation rate since January 1997, which is when record keeping in this area began. View the inflation statistics here: http://ow.ly/8hz830sprnQ. The Bank of England sets interest rates as part of the plan for keeping inflation at its target level of 2%. On 4 August 2022, the bank rate was increased to 1.75%, which is a jump of 0.5 percentage points. This is the highest the rate has been since 2009, and the next date this is set to be reviewed is 15 September 2022. You can read more about this here: http://ow.ly/LcR230sprpk.
A NEW interactive guidance tool has been made available online, for individuals to use to establish if they should be paying the health and social care levy in tax year 2022/23. The tool uses a variety of multiple-choice questions to determine whether you’re an employee, employer or a self-employed individual. It enquires about your level of earnings, and whether you’re above or below state pension age. It then advises if you should be paying the health and social care levy in tax year 2022/23 or not. The tool can be accessed here: http://ow.ly/ tnIF30sprBJ.
Diary dates
5 September
Last day of tax month 5
6 September
First day of tax month 6
5-9 September
National Payroll Week
Last day for submitting a real time information employer payment summary to apply to tax month 5 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
19 September
22 September
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
5 October 6 October
Last day of tax month 6 First day of tax month 7
| Professional in Payroll, Pensions and Reward | September 2022 | Issue 83 6
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