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to his shortened preferred name, should be viewed on his P60 document. Which would be correct, and does HMRC hold a preferred name section in its system? A: For the purposes of official documents, HMRC requires the person’s legal name to be used. In the FPS developer guide, HMRC states that the full name should be given, as opposed to preferred or shortened names (data item 7). See https://ow.ly/ B0pW50SebLk.
the following month if they have missed the payroll cutoff, and generally tax and NI are due on payments when they are made to employees. If you haven’t made a mistake and this is just the normal course of payroll processing and how the wages are paid, you wouldn’t need to make any amendments. If the employee disagrees you could point them to HMRC. If HMRC says the tax should be added to the previous tax year they will quite possibly point the employee back to the employer to correct on their records. You cannot apply NI back to a previous tax year though, as this must be allocated at the time the payment was made. There is guidance for this in the CWG2, see section 3.1.5: https://ow.ly/wVxB50Se9tg.
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Should legal names be used on official documents?
Pensions when on maternity Q: I have recently taken over a payroll and a couple of employees are receiving SMP. Until now they have based their pensions contributions on the standard 5% / 3% split. Is there any instance where an employer doesn’t have to contribute the same as the salary pre-SMP? A: If the scheme is Relief at Source (RAS) the employee pays theirs and the employer pays theirs, and the same for the Net Pay Arrangement (NPA) scheme. But if the pension scheme is a salary sacrifice one then it’s slightly different. With a salary sacrifice arrangement for pension, the employee has given up pay in a written agreement for a higher employer contribution. This means there are no employees’ pension contributions, it’s all employers (8%). You can only take the salary sacrifice from salary or ordinary maternity pay, you can’t deduct it from SMP. If they are only receiving SMP and no company maternity pay, you can’t take any of the salary sacrifice from the employee, but the employer must still pay over the 8%. This is because it is all employer contributions and is based on as if the employee is working and earning normally, not on the pay they are receiving. To confirm that if the scheme was RAS or NPA, the employer contribution is always based on the employee’s salary pre maternity leave as if working and earning normally and the employee is on what she receives. n
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How should tax be calculated for new starters when pay is backdated?
Paternity leave evidence Q: I’m getting a lot of conflicting
information from different sources in respect of statutory paternity pay (SPP). I have two employees wanting to claim SPP, but they don’t have a MATB1 certificate. They do have medical certificates from hospitals that the mothers have been to in India. As far as I was aware, the MATB1 certificate is required. Can you advise what can be used in place of a MATB1, if anything? A: There is no requirement for an employee to provide an employer with a MATB1 certificate when requesting statutory paternity leave and / or SPP. They can complete the online form which has replaced the SC3, which can be found here: https://ow.ly/KWiI50SCtrx. If the employee is having a baby through a surrogacy arrangement, they can use form SC4. Here’s a link to the relevant information: https://ow.ly/HcZs50SeaMO. The Statutory Payment manual for further reading can also be found here: https:// ow.ly/XzrN50SeaPx. Name on RTI files Q: I recently had an employee query whether his full legal name, as opposed
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| Professional in Payroll, Pensions and Reward |
Issue 103 | September 2024
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