Payroll news
Payroll news
Advisory fuel rates THE ADVISORY fuel rates changed with effect 1 December 2019 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
9p
11p 14p
Over 2000cc
21p
14p
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.
Class 1 NICs thresholds for 2020–21 AT THE time of writing, no government announcement had been made about the various earnings thresholds and bands for NICs for tax year 2020–21. However, the Queens Speech delivered in December 2019 states that the government “has committed to not raise VAT, income tax and National Insurance” and “is committed to…raising the National Insurance threshold to £9,500 next year”. It is unclear whether the ‘threshold’ is the lower earnings limit (LEL) or the primary/secondary earnings threshold, and indeed from when the revised amount will operate. Statutory payments 2020–21 AT THE time of writing, proposals to revise the levels of various statutory payments from April 2020 had been placed in the House of Commons Library by the Department for Work and Pensions. It is envisaged that the proposed weekly rates of various statutory payment and effective dates will be as follows. The weekly rate of statutory maternity pay (SMP), statutory adoption pay (SAP), statutory paternity pay (SPP), statutory shared parental pay (SShPP) – and, probably, the new statutory parental bereavement pay (SPBP) – will be £151.20 from Sunday 5 April. If the employee’s maternity, adoption, shared parental or paternity pay period started on a day other than a Sunday, the new weekly rate of SMP, SAP, SPP or SShPP does not apply until the beginning of the first complete SMP-, SAP-, SPP- or SShPP-week following Sunday 5 April. The weekly rate of statutory sick pay (SSP) will be £95.85 from 6 April 2020. To be entitled to SSP for any periods of incapacity for work (PIW) commencing on or after 6 April 2020 (and which do not link to an earlier PIW) employees must have average weekly earnings of at least the class 1 NICs LEL in force on that date. The table below shows rounded daily rates and amounts payable according to the number of qualifying days (QDs).
Number of days/amounts (£) to pay 1 2 3
QDs days in week
4
5
6
7
13.70
27.39
41.08
54.78
68.47
82.16
95.85
7
15.98
31.95
47.93
63.90
79.88
95.85
6
19.17
38.34
57.51
76.68
95.85
5
23.97
47.93
71.89
95.85
4
31.95
63.90
95.85
3
47.93
95.85
2
95.85
1
Diary dates
Last day for submitting a real time information employer payment summary to apply to tax month 10 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
19 February
22 February
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
5 March
Last day of tax month 11
6 March
First day of tax month 12
17
| Professional in Payroll, Pensions and Reward |
Issue 57 | February 2020
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