Policy News Journal - 2011-2012

The former rate of £3 could be multiplied by 52 and divided by 12 to give exactly £13, or if 53 weeks are used then £13.25, both neat round numbers. However with the new £4 rate it works out to be £17.333, or if worked out with 53 weeks then £17.666. Simon asked if HMRC would consider rounding the amount up to £18 for consistency as it would be helpful for the monthly value to be declared for employers to reference to avoid confusion. HMRC considered the matter and are happy to allow monthly paid employees who work regularly from home to be paid £18 per month. HMRC will amend their guidance in due course to reflect this decision.

Payrolling

IMPORTANT INFORMATION FOR PAYROLLED EXPENSES AND BENEFITS

13 April 2011 If you have payrolled any expenses and benefits you should read the latest guidance on how to report this and follow the process that fits your situation. Even if you have entered into an arrangement to payroll benefits in kind and expenses, you still have to send HM Revenue & Customs completed forms P11D, or equivalent lists. You may make yourself liable to penalties if you fail to do so. Follow this link for the latest guidance from HMRC 27 April 2011 Payroll providers and employers may be able to identify the recipients of payrolled expenses and benefits via their payroll system (because that is where the expenses and benefits are being payrolled) and using reporting tools (that are available to most payroll systems). The following data would fulfil the employer’s obligation to provide expense and benefit information where the expense of benefit has been payrolled: · include the employer reference · include each employee's name and National Insurance number (if you don't know their National Insurance number you must include their date of birth and gender) · include all the payrolled expenses and benefits provided to each employee · show the code letters assigned to each expense or benefit on form P11D - these are the letters in the dark blue boxes at the left of each section This information must be provide in list format clearly marked ‘Payrolled’ on each page and organised by employee, not by type of benefit . The lists are to be presented in an easy-to- read format using a font size no smaller than 11-point Arial when printed. HMRC are considering how the report (or the data within it) may be submitted electronically to HMRC and meet the departmental security policy. All other expenses and benefits (i.e. those not payrolled) must be reported as per statutory requirements. ADDITIONAL PRACTICAL GUIDANCE FOR PAYROLLING

CIPP Policy News Journal

09/10/2012, Page 78 of 234

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