PART 1: DATES, DEFINITIONS AND OBLIGATIONS
Some benefits previously provided through the Social Security system, have been transferred to employers both in administration and funding. Sickness Benefit was replaced in 1983 by Statutory Sick Pay, which when originally implemented transferred the administration to the employer whilst funding remained with central government. Similarly, Statutory Maternity Pay replaced Maternity Benefit in 1986. In both cases funding has over the years been gradually transferred to employers (SSP 100%, SMP 8%) with limited exceptions for small employers. These were followed by other family related benefits such as Adoption pay, Shared Parental pay and others. Included in this book in PART 4, STATUTORY PAYMENTS , are the basic outlines of the principle contributory related benefits currently available, together with details of some relevant former benefit arrangements. Comprehensive entitlement rights can only be obtained by reference to Jobcentre Plus or HMRC offices. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS From October 2013 the following state benefits started their transition to the new Universal Credit (UC): tax credits: housing benefit, incapacity benefit, employment and support allowance and Jobseeker’s allowance. UC is designed to flex each month based on real time earnings information sent to HMRC by employers after each payroll run. STUDENT LOANS COMPANY (SLC) Set up in 1990, the SLC is the principal source of funds for undergraduates. It administers the Government’s student loan schemes. When taking a loan the learner completes a combined loan application and an agreement form. Each loan is given an individual reference number by the SLC. The agreement is that repayment will be in accordance with government regulations applicable at the time repayments are due. The Consumer Credit Act does not cover a Student Loan and a formal credit agreement is not required. Repayment is based on the earnings of the borrower. Those of husband, wife, partner or other relatives are not taken into account. Income from disability benefits is also excluded. Unearned income exceeding the applicable threshold must be declared to HMRC under Self- assessment and a separate calculation and repayment will be made. Repayments are calculated as a percentage of income above an agreed annual threshold level. The interest rate is set each year in advance, effective from 1st September, and is linked to inflation in line with the Retail Prices Index. Additional lump sum repayments may be made by direct agreement with the company. No printing, copying or reproduction permitted. Complaints are dealt with via the SLC and HMRC’s own internal complaints procedures. If these are not resolved they are passed on to the Student Loan Company’s Independent Assessor or the Tax Tribunal. Annual statements are issued to borrowers at the end of August each year until repayment commences at which point an interim statement is issued. Thereafter, the distribution of statements is dependent on the repayment process: • PAYE - After the end of each tax year, after the SLC have received details from HMRC • Self-Assessment (SA) - After the end of each tax year, subject to prompt submission of SA returns • Outside the UK tax system - Shortly after the end of each tax year.
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