PART 1: DATES, DEFINITIONS AND OBLIGATIONS
SPTA
Single Person’s Tax Allowance
SSP
Statutory Sick Pay Secondary Threshold Taxed Awards Scheme
ST
TAS TEC COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS Training and Enterprise Council TFC TPR Tax-Free Childcare The Pensions Regulator (formerly OPRA) TURERA Trade Union Reform and Employment Rights Act 1993 UAP UEL Upper Accrual Point Upper Earnings Limit UKBA UK Border Agency UST VAT Upper Secondary Threshold for under 21s Value Added Tax VDEA WFTC Voluntary Deduction from Earnings Order Working Families Tax Credit WTC Working Tax Credit ADOPTION PAY AND LEAVE Introduced April 2003 to provide a period of time for the adoptive parent and child to bond and adjust to their new surroundings. Adoption leave and potentially pay is available to either parent, if adopting jointly, at the time a child is placed with new parents. The other partner will potentially qualify for Ordinary Statutory Paternity Leave and Pay and have rights under the Shared Parental Leave rules. See PART4 for more detailed information. ADVANCES OF PAY An advance is a payment of net pay made before it is due or can be paid, in legal terms an advance on account of earnings. The gross amount to which the advance relates is treated as pay with the next normal payroll calculation process. It is important to distinguish a pay advance from a true loan. For example, a sum of money provided to facilitate transfer from weekly to monthly pay, fully recoverable by the employer, is a loan, not an advance and as such is not regarded as earnings. If payments of advances become regular and normal practice - e.g. halfway through each pay period - those might cease to be advances and might then constitute payment for tax and National Insurance purposes. No printing, copying or reproduction permitted. This is critical for RTI purposes because an advance may become reportable ‘on or before the date of payment’. Where this is not possible HMRC allow ad-hoc advances to be reported on the next available FPS (Full Payment Submission). Some employers avoid any suggestion that advances are becoming too regular by referring to them as loans recoverable next pay day. Employers must ensure the “loan” type advance is fully recovered in all circumstances. Advancing of normal pay in order to avoid or limit tax and NI liability, for example at the start of a tax year when tax/NICs rates are increasing, can be classified as an abnormal pay practice and could be challenged by HMRC.
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