Payroll news
Payroll news
Advisory fuel rates THE ADVISORY fuel rates changed with effect 1 September 2019 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 obligation to do either.
Student/postgraduate loans REVISED REPAYMENT earnings thresholds for income contingent student loans have been announced by the Department for Education. From 6 April 2020 (i.e. the start of tax year 2020/21), the annual threshold at which repayment deductions commence for: l plan 1 student loans will rise to £19,390 (currently £18,935) l plan 2 student loans will rise to £26,575 (currently £25,725). The current threshold of £21,000 for postgraduate loans (PGL) will continue for tax year 2020/21. In Scotland, the First Minister has announced that from April 2021 the repayment threshold for student loans will be raised to £25,000. HMRC has begun sending generic notification service (GNS) messages to the PAYE online accounts of any employer that continues to take student loan or PGL deductions from an employee after a stop notice (SL2 or PGL2) has been issued. The purpose of the introduction of these messages – there are eight – is to increase employer compliance with stop notifications and reduce the amount that borrowers overpay. Employers that continue to make loan deductions will receive for each stopped-borrower or non-borrower no more than two GNS message prompts per tax year per loan type. l Off-payroll working for agencies (http://bit.ly/2kcKUeD) l Fee-payer responsibilities under the off-payroll working rules (http://bit.ly/2m90A3a) Revised guidance comprises: l Prepare for changes to the off-payroll working rules (IR35) (http://bit.ly/2ZRih6X) l Working through an intermediary (IR35) (http://bit. ly/2kFLfXq) l Understanding off-payroll working (IR35) (http://bit. ly/2lQk7oO) l Public sector off-payroll working for clients (http://bit. ly/2kHckJY) l Public sector off-payroll working for intermediaries (http:// bit.ly/2kcLxov) l Private sector off-payroll working for clients (http://bit. ly/2lIF3hD) l Private sector off-payroll working rules for intermediaries (http://bit.ly/2mcQPBc) l How to calculate the deemed employment payment (http://bit.ly/2lQkX4W) Off-payroll working guidance THE GOVERNMENT has worked with stakeholders to produce guidance from a user-perspective about the changes taking place in April next year. Further guidance will be published later this year. New guides comprise: l April 2020 changes to off-payroll working for clients (http://bit.ly/2m5Haw2) l April 2020 changes to off-payroll working for intermediaries (http://bit.ly/2lRPTSk)
Engine size
Petrol
Diesel
LPG
Up to 1400cc
12p
8p
10p
1401cc to 1600cc 1601cc to 2000cc
14p
10p
11p 14p
Over 2000cc
21p
14p
HM Revenue & Customs (HMRC) will accept that if the employer pays up to 4 pence per mile when reimbursing their employees for business travel in a fully electric company car there is no taxable profit and no class 1 National Insurance contributions (NICs) to pay. The advisory electricity rate will be published alongside advisory fuel rates and kept under review. Employers can, however, use their own rate which better reflects circumstances if, for example, the cars are more efficient, or if the cost of business travel is higher than the guideline rate. EYU pilot extended IT HAD been the intention of HMRC that the earlier year update (EYU) return would cease to be a valid submission for the current and later tax years. However, HMRC has recently announced that a final decision regarding the withdrawal of the EYU return is postponed so as to allow continuing evaluation of the ongoing pilot of using the full payment submission (FPS) for making year to date (YTD) amendments to returns for prior tax years. The postponement means that FPS and/or EYU returns can be used to amend YTD values for tax years 2018/19 and 2019/20. Holiday pay guidance THE DEPARTMENT for Business, Energy and Industrial Strategy has updated its holiday pay guidance to reflect the Court of Appeal’s ruling in the case Harpur Trust v Brazel (http://bit.ly/2lOYeWY). The Court ruled that Brazel, a visiting music teacher whose working hours were decided at the start of each school term depending on the number of pupils wanting tuition, should have her holiday pay calculated based on a twelve-week average of hours worked, giving holiday pay of around 17.5% of annual pay, rather than 12.07% for staff working a whole year which was the basis Harpur Trust used.
Diary dates
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 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 Due date for returns P46(Car) for quarter to 5 October 2019
19 October
22 October
2 November
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| Professional in Payroll, Pensions and Reward |
Issue 54 | October 2019
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