• Scrap any form P9(T) or other tax code notification for the same employee with an earlier date • Copy the tax code from the form P9(T) or other tax code notification onto payroll record • Update any tax codes where form P9(T), or other tax code notification, is received after payroll records have been set up
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Advice surrounding the new version of the SSP1 form 3 March 2020
The Department for Work and Pensions (DWP) recently published a new version of the SSP1 form, and some amendments had been made that were surprising to payroll professionals.
One of the unexpected changes related to the fact that there now seemed to be a requirement for SSP1 forms to be completed and distributed in circumstances where employees had less than four days absence relating to sickness. SSP is not payable to employees before the fourth consecutive day of sickness-related absence, and the first three days are classed as waiting days. The reason ‘you have been off sick from work for less than 4 days’ was not present in part C of the previous SSP1 form but was included on the new version. This addition was worrying for payroll professionals, due to the massive administrative burden for payroll departments if SSP1 forms had to be produced every time an employee was off sick for a period lasting between one and three days. DWP has confirmed that it will be redrafting the SSP1 form, which will be published in due course. In the interim, employers can continue to use the previous form if the new version does not meet their needs. Alternatively, they can amend the new form, either manually or digitally, to reflect the reason as to why SSP cannot be paid, should the new form not provide the option and it was included on the previous form. HMRC has also confirmed that there is no requirement to complete an SSP1 form for employees who have had between one- and three-days absence, as it serves no purpose and will only result in additional, unnecessary work for payroll departments.
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Scottish tax rates and thresholds unlikely to operate from 6 April 2020 5 March 2020
Last week, HMRC published the ‘rates and thresholds for employers 2020 to 2021’, and within the document, the Scottish rates and thresholds were unchanged from those in operation for tax year 2019-20.
This was surprising to some as the Scottish budget, held on 6 February 2020, presented a different set of thresholds for the new tax year. HMRC’s Software Developer Support Team (SDST) has now confirmed that this is because it “would not expect the Scottish budget to operate from 6 April 2020.”
There has been no further information provided as to when the thresholds proposed at Scottish budget will take effect from, and the advice given is that the operative date will be confirmed in due course.
As soon as there are any further updates, the CIPP will notify its members via News Online.
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Latest advice on Scottish tax threshold changes 16 March 2020
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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