Payroll news
Advisory fuel rates THE ADVISORY fuel rates changed with effect 1 September 2020 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. Employers can use their own rate which better reflects circumstances if, for example, the cars are more efficient, or if the cost of business travel is higher than the guideline rate. HM Revenue & Customs (HMRC) will accept that if the employer Student loan repayments AS PART of improving its service for customers in repayment, the Student Loan Company (SLC) has launched the online repayment service (ORS). Customers can now check their online account for an up-to-date balance and will have greater visibility of the final stages of repayment and when to join the direct debit scheme. Although ORS removes the need for paper statements, customers can still request them. Further information can be found here: https://bit.ly/33dp90J. The ORS has enabled SLC to redesign guidance for customers and to better explain how student loans are different to other types of borrowing, along with the new article ‘8 things you should know about your student loan’ (https://bit.ly/2FmwOli). In August, the Department for Education announced the annual updates to the interest rates and thresholds of income contingent student loans, as set out in the relevant regulations and terms and conditions of the loans (https://bit.ly/3m7u4ZR). From 6 April 2021, the repayment threshold for:
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.
Engine size
Petrol
Diesel
LPG
Up to 1400cc
10p
6p
8p
1401cc to 1600cc 1601cc to 2000cc
12p
8p
9p
Over 2000cc
17p
12p
11p
RTI 2021/22 specification THE REAL time information (RTI) technical specifications for reporting pay as you earn (PAYE) information in tax year 2021/22 to HMRC have been released (https://bit. ly/3bLdryn). The following changes to the full payment submission have effect for data items: ● 192 Student loan plan type in pay period – New renumeration ‘04’ added, so valid entries will be ‘01’, ‘02’, ‘04’ ● 198 Amount of Part 7A Disguised Remuneration income – Element removed. The following changes to the employer payment summary have effect for data items: ● 202 Employer is in the industrial/other sector – Description changed to ‘Employer is in the industrial sector’ ● 204 Amount of De minimis State aid (in claim year and previous 2 years) in Euros – Element removed ● 205 Currency of amount of De minimis State aid – always Euros – Attribute removed.
● pre-2012 (‘plan 1’) loans, will rise to £19,895 ● post-2012 (‘plan 2’) loans, will rise to £27,295 ● postgraduate loans will continue to be £21,000.
CCO legislation awareness THE CORPORATE criminal offences (CCO) legislation, introduced in 2017, makes relevant bodies (i.e. incorporated bodies, typically companies, and partnerships) criminally liable for offences committed where they fail to prevent an associated person (employees and agents of a corporation, and anyone else providing services for, or on behalf, of the corporation) criminally facilitating the evasion of a tax, whether the tax evaded is owed in the UK or in a foreign country. HMRC wants to raise awareness of this legislation because, although some sectors may feel that it is more relevant to them than others, based on how tax fraud could relate to the services they offer, the CCO is more far-reaching than many businesses may realise. The aim is to change industry practices and attitudes towards risk to try to prevent the facilitation of tax fraud from happening in the first instance. Businesses should consider how the legislation may affect them, and the efficacy of their reasonable preventative procedures. Guidance can be found here: https://bit.ly/3iuz88B.
Diary dates Last day of tax month 6 First day of tax month 7
PAYE errors THE FIRST-TIER Tribunal has rejected the appeal of Planet Double Glazing Limited against HMRC’s assessment of £58,822 in respect of unpaid income tax and National Insurance contributions (NICs) plus penalties for failing to keep accurate employee records or operate PAYE correctly. HMRC had assessed that: £31,372 was due under the PAYE regulations for the tax years 2011/12/13/14/15; £19,758 as NICs for the period 6 April 2012 to 5 April 2015; and had imposed penalties totalling £7,692.48 in respect of the tax years 2012/13/14/15. The full case report can be found here: https://bit.ly/2Fgwl4j.
5 October 6 October
Last day for submitting a real time information employer payment summary to apply to tax month 6 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 October
22 October
Last day of tax month 7 First day of tax month 8
5 November 6 November
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| Professional in Payroll, Pensions and Reward |
Issue 64 | October 2020
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