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If you are in, or aspiring to be in, a managerial position in your organisation, this qualification builds on your existing industry knowledge to help you make strategic decisions for the benefit of your team and your organisation as a whole. BA (Hons) in AppliedBusiness andManagement (CIPP)
A: NICs should be calculated based on when the payment for the invoice is made. If the invoices are submitted monthly and paid monthly, then you would work out the NICs monthly, but if there is one amount on one invoice (even if it is for more than one month) the employer would calculate NICs for one pay period only when the payment of the invoice is processed. Q: I believe that Northern Ireland has slightly different NICs rules. Are there any complications if I put an employee who works in Northern Ireland on a UK payroll for pay as you earn (PAYE) purposes? A: The rules and guidelines for a Northern Irish employee on a UK payroll are generally the same as for the rest of the UK except for items like redundancy rates and employment protection daily rate. I confirm that there is no difference to NICs rates or tax thresholds in this scenario. Q: My enquiry concerns a situation where there was a buyout of a company last year which resulted in some employees moving tax references. When they received their P60 certificate for tax year 2016/17 it only showed NICs for nine months under the new PAYE reference, and this has led to many complaints from employees. Can you advise how we can handle this situation? A: You could produce two separate statement of earnings showing the two PAYE references and the total contributions across the two references so these employees have a record of what they paid over the whole year. There should only be one P60 certificate issued from the new PAYE scheme for these employees. The employees could choose to confirm with the National Insurance Contributions Office that their contributions are recorded on their record, and whether there was a full year of contributions. The employee can use this link to check their NICs are up to date: https://goo.gl/TN3Lv5. Q: One of my clients is a restaurant owner, and recently the staff asked to set up a tronc for the cash tips that are received from customers. Can these tips be processed through the client’s payroll under the PAYE scheme reference?
A: If the employer is involved in the distribution of the tips, then these would be processed through the employer’s payroll and PAYE scheme and subject to income tax and Class 1 NICs. Where the tips are either given in cash to the employees or left on the table so the employee can receive them, the responsibility is that of the employee not the employer. If a ‘tronc’ is set up there must be a person designated as the ‘troncmaster’, who must apply for a new PAYE scheme which will be separate from the employer’s PAYE scheme. The reason for this is so the employees will be taxed on the tips/gratuities through a separate scheme to their main income, and there will be no liability for NICs on these tips in this scenario. Also, the troncmaster would be wholly responsible for calculating, deducting and reporting the PAYE to HMRC via real time information. Please use this link to GOV.UK: https:// goo.gl/exwUvH. Q: We have an employee who is being made redundant on 13 September 2017. We received a paternity leave request from him on 23 September 2017 asking to take two weeks’ statutory paternity leave and pay (SPL and SPP), commencing on 1 October 2017. Do we have to pay SPP to him as a payment after leaving? A: One of the conditions of taking SPL is that the employee must be employed by the employer up to and into the week of taking SPL. So, as this employee left the employment on 13 September and the SPL commences on 1 October 2017, there is no entitlement to SPL or pay. Please follow this link to GOV.UK for information on paternity pay and leave: https://goo.gl/k7SNQ5. n
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Issue 34 | October 2017
| Professional in Payroll, Pensions and Reward |
*correct at time of publication
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