Professional September 2020

Payroll news

Check the accuracy of your Furlough payments with CIPP Consult

Calculating a week’s pay THE EMPLOYMENT Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020 (SI 2020 No 814)(https://bit.ly/2CorT1X) came into force on 31 July. These regulations set out how a week’s pay is to be calculated in the case of an employee who is or has been furloughed under the coronavirus job retention scheme, for the purposes of calculating any of the following to which the employee is entitled: ● statutory remuneration for time off to look for employment or arrange training ● statutory notice payment ● statutory sum resulting from a failure to provide a written statement of reasons for dismissal ● statutory sum resulting from a failure to comply with an order for reinstatement or re-engagement ● statutory compensation for unfair dismissal ● statutory redundancy payment. The regulations also set out how a week’s pay is to be calculated for the purpose of deciding whether an employee is taken to be on short-time for statutory purposes. Off-payroll working (IR35) HM REVENUE & Customs (HMRC) will be re-launching its package of customer education and support later this year, and the October edition of the Employer Bulletin will include a full timetable for the support available including webinars, updated guidance and helpful communications resources to cascade to contractors and organisations employers engage with. Reporting P11D, P11D(b) and P46(car) THE PAYE Expenses and Benefits service, part of HMRC’s PAYE Online service, is being redesigned to focus on the accessibility needs of users as well as providing a more user-centred experience. Further information will be provided ahead of the release which is expected to be within the last quarter of 2020. Taxation of crew-cab vehicles THE COURT of Appeal has held, in the case Payne, Garbett and Coca-Cola European Partners Great Britain Ltd v The Commissioners for HM Revenue & Customs (https://bit. ly/3fQubo7), that three types of modified crew-cab vehicles should be classified as cars, not vans, for the purposes of taxation of benefits provided by reason of the employment. Coca-Cola provided the employees with these modified vehicles and allowed private use. Though the company and the employees asserted the vehicles were vans, HMRC argued that as the vehicles did not meet the statutory definition of being of a construction primarily suited for the conveyance of goods or burden they were cars for taxation purposes. It remains to be seen whether Coca-Cola and the employees will seek to appeal. For further information visit https://bit.ly/3kDqQMV. HMRC are looking for organisations that employ anywhere from 5–250 employees to participate in user research, and contribute into the design process. To take part in the research contact: brian.coult@digital.hmrc.gov.uk. Disguised remuneration loan charge THE AUGUST issue of the Employer Bulletin (https://bit.ly/3gSYgEV) provides guidance about the 30 September 2020 deadline for current or former employees who have outstanding disguised remuneration loans that are subject to the loan charge to report details or who want to spread loan balances evenly across tax years 2018/19/20/21.

The CIPP’s Consultancy team can check your Furlough payments are processed accurately and your calculations are correct. They could also help you avoid potential penalties for incorrect payments. Find out more at: https://bit. ly/3jaZ4G4

CONTACT OUR CONSULTANCY TEAM TODAY

Diary dates Last day of tax month 5 First day of tax month 6

5 September 6 September

For more information: Visit: cipp.org.uk/training Email enquiries@cipp.org.uk Call: 0121 712 1000 Live chat with us

National Payroll Week

7-11 September

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 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method

19 September

22 September

Last day of tax month 6 First day of tax month 7

5 October 6 October

cipp.org.uk @CIPP_UK

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| Professional in Payroll, Pensions and Reward |

Issue 63 | September 2020

*correct at time of publication

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