P38(S) WILL NO LONGER BE AVAILABLE FOR USE FROM APRIL 2013
15 March 2012 HMRC’s Software Developers Support Team have made an informal announcement regarding the decision to withdraw student form P38(S). HMRC have looked at the way that the P38(S) is used by employers today in light of the changed working practices of students. Form P38(S) will no longer be available for use from April 2013. HMRC will discuss the impact the removal of the P38(S) will have with relevant stakeholders and make a more formal announcement in due course. However in the meantime employers participating in the Real Time Information pilot will not be able to use form P38(S) when employing a student during the vacation. If the employer knows that they will be going on to RTI whilst employing a student they will not be able to use form P38(S) and should treat that student the same as any other employee. This is how employers will be affected during the 2012/13 tax year: · April 2012 - Controlled Go-Live employers - These employers should not use the P38(S) process and treat students in the same way as any other employee · May - June 2012 - joining employers are unlikely to be impacted unless they have employed students during the Easter break and have used form P38(S), they will follow the process outlined below · July - September 2012- joining employers should not use form P38(S) for students working for them during the summer vacation but will need to follow the process outlined below if they used form P38(S) · November, December 2012 & March 2013 - these employers can use form P38(S) over the summer holidays if they want to and employers joining RTI in March 2013 can also offer it over the Xmas holiday, if they do they will need to follow process outlined below If an employer has used the P38(S) process for any student employees for 2012-13, they must include details in the payroll alignment process when they move to Real Time Information. They will need to show the student employee as a leaver when reporting the pay they received during holiday time by entering: · the tax code 'NT' · the last date of payment as the date of leaving If a student subsequently returns to the employer during another holiday period they will be treated in exactly the same as any other new employee starting employment. 21 March 2012 HMRC have pledged to end the controversy surrounding P35 penalties by providing information to employers that is timely and more efficient, in an effort to ensure a greater number of PAYE end-of-year returns are submitted to deadline. Taxation reports: In a joint statement – reproduced below – issued by the Revenue, professional bodies and tax charities, the department has addressed the many recent complaints by commentators, advisers and taxpayers about how late-filing fines are issued to firms. It has been claimed that the taxman was waiting at least three months before alerting employers to a punitive financial measure that had been accruing at £100 per month. HMRC ISSUE STATEMENT OVER ACCRUED LATE FILING FINES FOR P35
CIPP Policy News Journal
09/10/2012, Page 121 of 234
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