Payroll news
Payroll news
Tax-free childcare compensation SINCE GOING live in April, there have been reports that the online childcare service has caused challenges and frustrations. HMRC are offering compensation in the form of a top-up to parents’ tax-free childcare and will consider refunding any reasonable costs directly caused by the service not working as it should, mistakes or unreasonable delays. To apply for compensation, visit http://bit.ly/2vl7dhF. ● August: a selected group of business tax account customers could see outstanding charges and credits itemised as well as a new annual statement showing charges, credits and payments for the current tax year ● September: a new monthly statement available, for all customers ● October: further improvements to the annual statement and monthly breakdown. OpRA and voluntary payrolling THE MOST recent issue of HM Revenue & Custom’s (HMRC’s) Employer Bulletin includes content about voluntary payrolling of benefits in kind (BIKs). Legislation that was to be amended by provisions originally intended for Finance Act 2017 will be amended later in the year. Those employers that have registered to voluntary payroll before 6 April 2017 for a BiK to which the new optional remuneration arrangements (OpRA) rules apply will not need to complete a P11D return for the 2017–18 tax year, as long as: ● the tax due on the revised taxable value of the BiK for the full year is deducted, and ● the information is returned via real time submissions. This concession is available only for the 2017–18 tax year. The PAYE (pay as you earn) regulations will be amended to ensure that they stipulate that the cash equivalent (or modified cash equivalent) should be used. HMRC’s current plans are that draft regulations for stakeholder consultation will be published after the summer, and formally brought into effect in time for start of the 2018–19 tax year. Further guidance for employers will be available shortly. Changes to business tax account CHANGES TO HMRC’s online business tax account service planned for August to October and intended to improve the accuracy and design of employer PAYE liabilities and payments information, are scheduled as follows:
Advisory fuel rates THE ADVISORY fuel rates changed with effect 1 September 2017 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 In addition to making good the underpayments, listed employers have been fined £1.9 million in total by the government. There are currently around 2,000 cases being investigated by HMRC. List of employers not paying NMW/NLW A LIST of 233 businesses that have underpaid workers the national minimum/living wage (NMW/NLW) has been published by the Department for Business, Energy and Industrial Strategy (http://bit.ly/2wVPPT1). All 233 cases failed to pay the correct rates and owed arrears of more than £100. Sectors that featured prominently are: ● hairdressing and other beauty treatment – around sixty employers, £121,000 arrears, 200 workers ● hospitality – around fifty employers, £77,000 arrears, 220 workers ● retail trade – around twenty employers, £1.5million arrears, 12,200 workers. Heading the list is Argos Limited, which underpaid 12,176 workers a total of £1,461,881.78; on average £120 each. Common errors made by employers included deducting money from pay packets to pay for uniforms, failure to account for overtime hours, and wrongly paying apprentice rates to workers.
Engine size
Petrol
Diesel
LPG
Up to 1400cc
11p
7p
9p
1401cc to 1600cc 1601cc to 2000cc
13p
8p
11p
Over 2000cc
21p
12p
13p
Diary dates
And briefly… ● Student loan repayment threshold – the Student Loans Company has announced that from 6 April 2018 (i.e. start of tax year 2018–19) the annual repayment threshold for plan 1 (pre-2012) loans will be £18,330. (The Plan 2 threshold of £21,000 is not being increased.) ● RD1 specification – HMRC has released revised specifications for substitute P60 certificates for tax year 2017–18 (http://bit.ly/2xuzDrR). ● Right to work guidance – the latest version of the Home Office’s An employer’s guide to right to work checks , dated August 2017, can be found at http://bit.ly/2w3egQN. ● Employer Bulletin – Issue 67 of HMRC’s Employer Bulletin can be found at http://bit.ly/2vGAtzz.
5 October
Last day of tax month 6
6 October
First day of tax month 7
Last day for submitting a real time information employer payment summary to apply to tax month 6
19 October
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 January 2016 and 30 September 2016 Due date for returns P46(Car) for quarter to 5 October 2017
22 October
1 November
2 November
25
| Professional in Payroll, Pensions and Reward |
Issue 34 | October 2017
Made with FlippingBook Online newsletter