Professional April 2020

Payroll news

Advisory fuel rates THE ADVISORY fuel rates changed with effect 1 March 2020 and apply, until further notice, to all journeys made on or after this date. For one month from the date of change, employers could choose to use either the previous or revised rates. Employers may therefore make or require supplementary payments if they so wish but are under no obligation to do either.

Engine size Petrol

Diesel

LPG

Up to 1400cc

12p

8p

9p

1401cc to 1600cc 1601cc to 2000cc

14p

10p

11p

Over 2000cc

20p 13p

14p

NM/LW enforcement for 2018/19 A REPORT published by the Department for Business, Energy and Industrial Strategy (http://bit.ly/39CH1UE) provides an overview of national minimum / living wage (NM/LW) enforcement activity during financial year 2018/19. During this record- breaking year HMRC identified the largest amount of arrears – £24,400,000 – for the highest number of workers – 220,000 – in any single year. A record number of penalties – 1,000 – were issued totalling just over £17,000,000. . One of the most important sources of information on non-compliance is the Annual Survey of Hours and Earnings (ASHE), which is used to estimate the number of employee jobs paid below the applicable NM/LW rate. Using ASHE, an estimated 424,000 jobs were paid below the applicable minimum wage rate, equivalent to 1.5% of all jobs held by employees, which is a decrease of 17,000 from the previous ASHE-based estimates where 1.6% of all jobs held by employees were paid below the minimum. The report, however, notes that there are reasons why this may not be a fully accurate estimate of non-compliance in the wider economy and says that work continues to improve estimates. And briefly… ● Official rate of interest – With effect 6 April 2020, the official rate of interest to be used to calculate the taxable benefit of a loan provided by reason of the employment reduces to 2.25% (from 2.50%). The rates used for such loans made in relations to Japan or Switzerland are not affected. ● COVID-19 – Information about the government’s support for public services, businesses and people can be found here: http://bit.ly/2TT3qrL. This outlines the changes to statutory sick pay, including the announcement that SSP will be payable from day one. HM Revenue & Customs (HMRC) will accept that if the employer pays up to 4 pence per mile when reimbursing their employees for business travel in a fully electric company car there is no taxable profit and no class 1 National Insurance contributions (NICs) to pay. The advisory electricity rate will be published alongside advisory fuel rates and kept under review.

TRUSTED PAYROLL SOLUTIONS PAYROLL SOLUTIONS

CORPORATE PAYROLL SOFTWARE AND SERVICES LEADING PR VIDER OF C RPORATE PAYROLL SOFTW RE AND SERVICES

ON-PREMISES | CLOUD | OUTSOURCED ON- I ES | CLOUD | FULLY MANAGED

Diary dates

Last day for submitting a real time information employer payment summary to apply to tax month 12 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method

19 April

22 April

T: 0800 0390116 E: sales@intelligosoftware.com W: www.intelligosoftware.com T: 0 1 6 E: sales@int are.com W: w.int are.com

5 May 6 May

Last day of tax month 1 First day of tax month 2

| Professional in Payroll, Pensions and Reward | April 2020 | Issue 59 20

Made with FlippingBook - Online magazine maker