Payroll news
Payroll news
Scotland Budget 2020 DETAILS OF the Scottish Budget for fiscal year 2020/21 were announced on 6 February,
more than a month ahead of the UK’s Budget. Though there will be no increase to any of the income tax rates the basic and intermediate band thresholds would be increased in line with inflation with the higher and top rate thresholds unchanged.
Bands
Rate
Starter rate £12,501–£14,585 19% Scottish basic rate £14,586–£25,158 20% Intermediate rate £25,159–£43,430 21% Higher rate £43,431–£150,000 41% Top rate Above £150,000 46%
NICs thresholds and limits THE EARNINGS thresholds and limits for class 1 National Insurance contributions for tax year 2020/21 have been released by the government and, subject to parliamentary approval, will take effect from 6 April 2020. The primary and secondary thresholds have diverged after several years of parity.
Weekly £
Monthly £
Annual £
Period
Band
TRUSTED PAYROLL SOLUTIONS
Lower earnings limit Primary threshold Secondary threshold Upper earnings limit
120 183 169 962
520 792 732
6,240 9,500 8,788
4,167
50,000
And briefly... ● P11D and P11D working sheets – Drafts of the P11D return and the associated working sheets for tax year 2019/20 which have recently been released by HM Revenue & Customs can be found here: http://bit.ly/2vgQKAI. ● ‘IR35’ Factsheet – HMRC has published a factsheet for contractors. Changes to off-payroll working rules (IR35) which can be viewed and downloaded here: http://bit. ly/3bkMQHO. ● 480 guide – HMRC’s 480 tax guide on expenses and benefits for directors and employees has moved to HTML format on GOV.UK. The online guidance can be found here: http://bit.ly/3blQnpa. Disguised remuneration loan charge THE GOVERNMENT has accepted all but one of the recommendations made by Sir Amyas Morse in the review he conducted of the independent loan charge. Those affected by the loan charge can elect to split their loan balance over three consecutive years 2018/19/20/21, but the most important change is that the charge will apply only to outstanding balances of disguised remuneration loans made between 9 December 2010 and 5 April 2019, whereas previously it applied from 6 April 1999. The draft regulations and guidance can be found, respectively, here: http://bit.ly/31D- V21w and here: http://bit.ly/39hW7i8.
CORPORATE PAYROLL SOFTWARE AND SERVICES
ON-PREMISES | CLOUD | OUTSOURCED
Diary dates
Last day for submitting a real time information employer payment summary to apply to tax month 11 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
19 March
22 March
T: 0800 0390116 E: sales@intelligosoftware.com W: www.intelligosoftware.com
5 April 6 April
Last day of tax month 12, tax year 2019/20 First day of tax month 1, tax year 2020/21
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| Professional in Payroll, Pensions and Reward |
Issue 58 | March 2020
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