Employees working abroad This guide has been updated to include Chile in the list of non-EEA countries that have an agreement with the UK. The guide covers PAYE if your employees work abroad, including applying for exemption in the other country.
HMRC update to electronic appeals system 4 June 2015
HMRC has updated their electronic appeals system to allow employers to appeal against a specific penalty raised for 2014-15.
HMRC introduced penalties for employers who report their payroll information late from:
6 October 2014 for employers with 50 or more employees 6 March 2015 for employers with fewer than 50 employees
For further information about late/non filing PAYE penalties, specified charges, inaccurate reports and how to avoid penalties in future, see HMRC’s guidance on What happens if you don't report payroll information on time .
2014-15 PAYE Tax Calculations - over and under payments 9 June 2015
HMRC has begun the annual End of Year Reconciliation process; a normal part of the PAYE system, to check that people have paid the right amount of tax in 2014-15.
HMRC will be sending P800s that show an overpayment of tax first, followed by a cheque around a fortnight later. You don’t need to do anything.
The whole process should be completed in October.
This automated process ensures those who have had a change in circumstances during the last tax year (2014- 15) that was not captured in their tax code have paid no more or less than they should. Any discrepancy could be because the taxpayer changed jobs, had more than one job for a time, a change of company car or received investment income that was not reported during the year.
The vast majority of PAYE taxpayers will have paid the right amount of tax for the year and will not be contacted by HMRC.
Information on how to check a tax calculation can be found on this webpage: Understanding and checking your P800 Tax Calculation
Changes to penalties incurred for late PAYE reporting 18 June 2015
HMRC has now issued the first in-year penalties notices to employers with fewer than 50 employees who missed the deadline for sending PAYE information to HMRC.
HMRC has announced that rather than issue late filing penalties automatically when a deadline is missed, HM Revenue and Customs (HMRC) will take a more proportionate approach and concentrate on the more serious defaults on a risk-assessed basis. This approach is in line with the likely direction of HMRC’s general approach to penalties, outlined in the HMRC penalties: a discussion document which it issued earlier this year and in HMRC’s fresh approach to considering appeals against late filing penalties for Self Assessment.
Late reporting penalties already apply to employers with 50 or more employees, so this ‘risk-based’ approach will apply to submissions that were late from:
CIPP Policy News Journal
25/04/2016, Page 271 of 453
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