Year End
The restricted period being either the period between 10 p.m. and 6 a.m. or, where required to work after 10 p.m., the period between 11p.m. and 7 a.m. Bar and restaurant workers may continue until midnight and from 4 a.m. There is an entitlement to a compensatory rest period where night work restrictions are excluded, and for work under such circumstances to be under adult supervision. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS YEAR END There are many processes to be followed at the fiscal year end however some which are not part of the statutory return process may easily be overlooked. NICs The records of female employees paying NICs at the married woman’s reduced rate (category B) must be examined to ensure that, where no contributions have been made throughout the current year, and none during the preceding year, the contribution category is revised for the forthcoming year to ensure full rate deductions (category A) commence. There are still a significant number of valid certificates in use and HMRC report that there are some who should have transferred to category A at some point. Employers are reminded that failing to change the category at the correct time could mean the shortfall in NICs becomes the liability of th employer. The Reduced Rate Certificate should be returned to the employee and a copy, suitably noted, retained for reference. Any NI table letter X entries should be examined to assess if the nil liability is still appropriate. Conversely where category A is set but earnings have been below the Lower Earnings Limit (LEL) £120 a week throughout 2020/21, category X could be inserted instead. Tax Codes Records of employees having tax calculated on a week 1/month 1 basis at the year-end should be examined to ensure that, unless advised to the contrary by HMRC, tax is operated on a cumulative basis in the new tax year. Employers should amend all week 1/month 1 basis codes to cumulative before applying new tax year coding notices, whether manual or automated, which may include week 1/month 1 notifications. If an employee/pensioner feels their coding for the new-year is incorrect they can ask HMRC to check this using the email enquiry forms to be found at https://www.gov.uk/tax-codes/if-you- think-youve-paid-too-much-tax Basic Earnings Assessment All employees who joined a childcare voucher scheme from 6th April 2011 must have their earnings assessed at the start of each tax year to ensure that only the level of tax relief appropriate to their marginal rate of tax is afforded to them for employer-supported childcare – see No printing, copying or reproduction permitted. https://www.gov.uk/government/publications/employer-supported-childcare. Originally it was thought that the Scottish higher rate threshold would apply to the basic earnings assessment from April 2017 when the Scottish parliament first used its tax raising powers to amend the rates and thresholds applying to taxpayers in Scotland.
145
Made with FlippingBook - Online magazine maker