The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
If you’re an employer and you provide expenses or benefits to employees or directors, you might need to tell HMRC and pay tax and NICs on them. HMRC have an A-Z on expenses and benefits to help you decide if you need to pay tax or National Insurance contributions on specific items you provide, or if you must report them on form P9D or P11D. 2015/16 marks the final year for reporting using a form P9D. How do I make a Class 1A payment and when is it due? - How to pay Class 1A National Insurance An electronic payment for Class 1A NIC declared on your P11D(b) return for the tax year ended 5 April 2016 must clear into the HMRC account by 22 July 2016. Using the correct payment reference when paying Class 1A NIC will help ensure it is correctly allocated. To allocate the payment correctly use your 13 character Accounts Office reference followed by 1613 For example if your Accounts Office reference is 123PA00123456, you would use 123PA001234561613. The reference should have no gaps between the characters. When adding 1613 the 16 tells HMRC the payment is for the tax year ended 5 April 2016, and 13 lets them know the payment is for Class 1A NIC. Do I need to tell you I have no P11Ds or P11D(b) due? There is no longer a need to submit a declaration if your software package no longer includes the questions and declarations on the final FPS; you only need to tell HMRC you have no return to make if HMRC have sent you a P11D(b) or a P11(D)b reminder. Which reference should I use? You should use your employer PAYE reference on forms P11D, P9D and P11D(b). The 13 character Accounts Office reference (for example 123PA00123456) should only be used for payments of Class 1A NIC. Toolkits to reduce common errors in returns HMRC have a range of toolkits that aim to provide guidance on how to avoid making common errors that HMRC see in filed returns. The toolkits are principally aimed at tax agents and advisers but they may also be of interest to employers. The most relevant toolkits for employers on the subject of expenses and benefits in kind is Expenses and Benefits from Employment Toolkit .
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Does your benefits package meet your employees’ needs? 5 August 2016
According to a study of 1,000 UK workers in July 2016, almost half think their current employee benefits package is not tailored to their needs.
New research published by payroll lending provider SalaryFinance in line with the UK’s first Smarter Working Day initiative - has found that 38% of UK workers currently have access to flexible working benefits, however, only 26% prefer flexible working conditions to great financial and psychological wellbeing benefits.
Key findings from the survey:
48% of people think their current employee benefits package isn’t tailored to their needs Increase in popularity of ‘work perks’ is not keeping employees happy, as four in ten UK workers feel undervalued Discounted cinema vouchers, nap time, massages, free fruit and coffee are overrated as people want access to more financial and emotional wellbeing benefits Less than one in five (19%) currently have access to benefits designed to support mental wellbeing, such as counselling services, and only one in four (26%) receive financial wellbeing support from their employer. In contrast, one in three (32%) receive ad hoc incentives such as free lunches, birthday cakes and duvet days.
With 58% of people saying that their employer has never asked for feedback on their benefits programme, employers could be falling out of touch with the needs of staff.
With nearly four in ten (39%) current UK workers feeling ‘undervalued’, Asesh Sarkar, CEO of SalaryFinance says that employers must act now to meet ever increasing expectations from employees if they are to attract and retain top talent.
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