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one used as the leave date by the old provider)? A: If the PAYE scheme has to change because the bureau had pooled two or more distinct payrolls, then the bureau will need to inform HMRC via the FPS that the
This will ensure both that you remain compliant and that your client’s employees are not disadvantaged by the movement of the actual payment date. The GOV.UK website provides information on when an employer can send a late FPS which can be accessed here: https://goo. gl/5LbiH8. Q: What is the National Insurance contributions (NICs) treatment for invigilators and where would guidance be found on GOV.UK website as I understand it changed recently? A: HM Revenue & Customs (HMRC) changed the treatment for these individuals in 2014 and therefore it depends on whether the individuals would be considered as self-employed or not. If they are classed as self-employed then Class 2 NICs are due. The guidance can be found on GOV.UK website at the links shown below. If the invigilator is considered an employee, then they are Q: I have a query relating to pensioner payroll and RTI and what we need to report if we take over a new payroll. For a lot of the schemes that we win as new business, we have to set up a new pay as you earn (PAYE) account because many of the larger providers hold a generic PAYE reference for all of their payrolls regardless of the client, pension scheme etc. Prior to RTI, when we created a new reference, the only difference to a ‘true’ starter was that we would advise the transfer date on a P46(Pen) pension starter form (as opposed to their original start date) and put an indicator to show the pensioner was not having a P46(Pen) submitted due to bereavement. However, under RTI you do not send starter declaration for a pensioner. Would you be able to clarify the process we should follow when we need to transfer records from one PAYE scheme to another? Do we need a starter declaration and if so what do we use? And what start date should we advise; (we have always previously used the next consecutive date to the liable for Class 1 NICs. ● https://goo.gl/T7biKZ ● https://goo.gl/7rGwLQ ● https://goo.gl/x17QI7 ● https://goo.gl/8EKp10
BA (Hons) in Applied Business and Management employee has left that PAYE scheme. The new bureau would set up the pensioner on the new payroll using the P45 information. Where the tax code is operated on the cumulative basis, you have to use previous pay and tax from the old PAYE scheme; non-cumulative tax codes would not need previous pay or tax. The starter declaration would not be appropriate in this circumstance as the pensioner is effectively receiving their pension from the same source, just the PAYE scheme is changing. This direct link to GOV.UK advises that you do not run the new pension payroll until you have finalised the old one: https://goo.gl/LH9NLu. Please refer to ‘moving pension recipients from one payroll to another’. Q: We engage with building contractors directly; for the purpose of the
construction industry scheme (CIS) some are paid gross and some are paid net. Will any of the companies, which are limited companies now, come under the off-payroll working legislation, and does the reporting and PAYE/NICs calculation that we would have to do supersede any CIS reporting? A: Once the appropriate checks have been processed and if the building contractor is deemed to be subject to chapter 10 of the Income Tax (Earnings and Pension) Act 2003, off-payroll working will take precedence over the CIS regulations. For clarification please refer to this link to GOV.UK website: https://goo. gl/IlGzFP. n
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Issue 29 | April 2017
| Professional in Payroll, Pensions and Reward |
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