Payroll news
Payroll news
Advisory fuel rates THE ADVISORY fuel rates changed with effect 1 March 2017 and apply, until further notice, to all journeys made on or after this date. For one month from the
Employment law statutory limits THE STATUTORY limits, which apply to certain awards of employment tribunals and to other amounts payable under employment legislation in Great Britain (excluding Northern Ireland), will increase with effect 6 April 2017 by virtue of The Employment Rights (Increase of Limits) Order 2017 (SI 2017/175).
Engine size
Petrol
Diesel
LPG
11p
9p
7p
Up to 1400cc
9p
1401cc to 1600cc
14p
9p
11p
1601cc to 2000cc
22p 13p
14p
Over 2000cc
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. Negative taxable earnings SECTION 128 of the Income Tax Act 2007 (ITA) enables a person who is in employment or holds an office in a tax year to make a claim for employment loss relief against general income. Section 11 (3) of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) explains that loss relief may be available under section 128 ITA in particular circumstances such as where taxable earnings minus deductions from earnings is negative. Generally, the result is treated as nil. A taxpayer, Julian Martin, received a signing bonus from his employer in consideration for agreeing a new contract of employment which reflected the employer’s wish for him to remain with the company for a further period of at least five years. The contractual terms included a provision which required that, in certain circumstances, such as the early termination of the contract, Mr Martin repay an amount to his employer. Such forfeiture or clawback clauses may feature in remuneration policies in the form of a requirement to repay signing-on bonuses, training fees or termination payments, resulting in situations similar to that which arose in Mr Martin’s case. Application of the contractual provision lead to Mr Martin having negative taxable earnings in a tax year. The Upper Tribunal judge construed ‘negative taxable earnings’ to refer to an item – typically a payment by an employee to his employer – which is brought into account in computing the total amount of earnings in accordance with the formula contained within section 11 (1) ITEPA. As a consequence of this decision, HMRC have introduced new guidance on the concept and definition of negative earnings along with practical examples, which can be found in the Employment Income Manual (http://bit.ly/2m9kc5y).
Great Britain
Subject of provision
Limit on amount of guarantee payment payable to an employee in respect of any day
£27.00
Maximum amount of a ‘week’s pay’ for the purpose of calculating
£489.00
basic or additional award of compensation for unfair dismissal or redundancy payment
And briefly… ● P9X(2017) – This form, which sets out procedures on tax codes employers are to use from 6 April 2017, can be found at: http://bit.ly/2mAYfd1. ● 480 guide – The Expenses and benefits A tax guide , which has been updated for tax year 2017–18, can be found at http://bit.ly/2m8IiO3. ● Apprenticeship levy – HMRC has added the Apprenticeship Levy Manual to its range of staff guidance (http://bit. ly/2mplES8). ● New £1 coins – A twelve-sided £1 coin enters circulation on 28 March 2017. The existing £1 coin ceases to be valid tender from 15 October 2017. Visit www. thenewpoundcoin.com for information. ● Statutory pay tables – The tables for linking periods of incapacity for purposes of statutory sick pay and for determining entitlement to statutory maternity/ paternity/adoption leave and pay, can be found at http://bit.ly/1Eb0ZVu. ● Employer Bulletin – HMRC has published issue 64 (http://bit.ly/2lbt0ao)/. ● Voluntary payrolling – Regulations have been laid to extend voluntary payrolling for tax year 2017–18 to include non-cash vouchers and credit tokens.
Diary dates
Automatic enrolment staging date for: (a) employers with fewer than thirty employees with either the last two characters in their PAYE reference number: 84–91, 93–99 or unless otherwise described; and (b) employers that do not have a PAYE scheme
1 April
5 April
Last day of tax month 12 and tax year 2016–17
6 April
First day of tax month 1 and tax year 2017–18
Last day for submitting a real time information employer payment summary to apply to tax month 12 of 2016–17 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 Automatic enrolment staging date for new employers where PAYE income first payable between 1 April 2012 and 31 March 2013
19 April
22 April
1 May
13
Issue 29 | April 2017
| Professional in Payroll, Pensions and Reward |
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