Policy News Journal - 2016-17

The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal

General PAYE News

Rates and thresholds for employers 2016 to 2017 1 April 2016

The rates, allowances and duties have been updated on GOV.UK for the tax year 2016 to 2017.

- PAYE tax and Class 1 National Insurance contributions - Tax thresholds, rates and codes - Class 1 National Insurance thresholds - Class 1 National Insurance rates - Class 1A National Insurance: expenses and benefits - Class 1B National Insurance: PAYE Settlement Agreements (PSAs) - National Minimum Wage - Statutory maternity, paternity, adoption and shared parental pay - Statutory Sick Pay (SSP) - Student loan recovery - Company cars: Advisory Fuel Rates (AFRs) - Employee vehicles: Mileage Allowance Payments (MAPs)

CIPP comment The National Minimum Wage (NMW) section now includes the National Living Wage (NLW) and the statutory payments section now shows that the first six weeks of Statutory Adoption Leave (SAL) is paid at 90% of earnings.

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Scottish S prefix tax codes 15 April 2016

HMRC has fixed the problem that was preventing the Scottish S prefix on tax codes from being shown on the P9s in third party software or the PAYE Desktop Viewer.

The recovery action will result in the reissue of all P9s for schemes which contained any Scottish tax codes and which were accessed via the Data Provisioning Service (DPS). The re-issue of the P9s will be complete by midday on Thursday 17 March 2016.

Employers will receive an email alert notifying them that a new P9 is available. Even if you have previously downloaded the P9 data please do so again to make sure that you have the correct codes for your employees.

HMRC apologise for any inconvenience this issue has caused.

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Check-off u-turn in Trade Union Bill 21 April 2016

The Government has backed away from plans to ban workers from opting to pay their union subscriptions through payroll in the public sector – the system known as ‘check-off’.

The TUC has reported the news that check-off would not be prohibited, as originally intended through the Trade Union Bill . Ministers announced in the House of Lords this week that workers could continue to opt for check-off where unions reimburse any costs to the employer.

TUC General Secretary Frances O’Grady said the TUC are delighted that the Government has listened and that this decision is the result of months of union and TUC lobbying.

The Chartered Institute of Payroll Professionals

Policy News Journal

cipp.org.uk

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