request monthly returns from self-employed individuals. The CIPP would ask members to note the rumour circulating might be due to the requirements for the self-employed if claiming Universal Credits, as they will need to report income now if claiming benefits. The second rumour was related to coding notices. “HMRC will allow employees to amend their own tax codes.” Again HMRC has confirmed there is currently no intention to permit this. Members should be aware HMRC has and continues to consult with the agent and employer community in respect of the Tax Dashboard facilities, which allows employers to see their tax payments etc. and individuals to see their tax affairs. This is very different to allowing individuals to decide their own tax code, and therefore is an unsubstantiated rumour.
STUDENT LOANS AND REPORTING PAYE INFORMATION IN REAL TIME
3 October 2012
HMRC’s Employer Bulletin 42 published last week, made reference to student loans and reporting PAYE information in real time.
The following is an excerpt from page 26 of the Employer Bulletin :
Student loans and reporting PAYE information in real time Reporting PAYE information in real time will apply to student loans too. When taking on staff, employers operating PAYE in real time should routinely ask every new employee if they are liable to repay an Income Contingent Repayment (ICR) loan, and if so student loan deductions should start from the first available pay day. This question should be asked at the same time as asking the starter declaration questions unless the employee has already provided you with a leaver statement (P45 part 3) which confirms that student loan deductions should continue. One of our members has highlighted that if employers do not comply with this duty, in the event that a P45 is not submitted and the new starter does not complete a P46 before their first pay day, then the employer could incur penalties. Of course we should remember that the P46 is, in effect, going, although HMRC has introduced the P46(Short) for employers to use internally to collect certain basic information and it does include a Student Loan box.
HMRC’s RTI guidance says:
You make student loan deductions if any of the following apply:
a new employee gives you a P45 stating that student loans deductions need to continue when you check, a new employee tells you that they are repaying a student loan HMRC sends you a Start Notice form SL1 as an employee is now eligible to start repaying their student loan So this suggests that employers have a series of questions to ask the new starter, whether they use the new P46(Short) or not, and this includes asking whether they are repaying a student loan. This is backed up by the following RTI guidance :
New Starter questions if your new employee doesn't have a form P45 If your new employee doesn't have a P45, you must do the following:
get them to declare their employment situation when they join find out if you need to deduct Student Loan repayments from their pay
You need these details to work out what tax code to use.
CIPP Policy News Journal
12/04/2013, Page 193 of 362
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