`The Chartered Institute of Payroll Professionals
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Taxing pension flexibility payments:
• deduct tax on the taxable element using the emergency code on a W1 / M1 basis — if a tax code is already held for the current year from the individual’s P45, that code should be operated on a W1 / M1 basis
Death of pension recipient:
• enter the leaving date (date of death) on the Full Payment Submission (FPS) with the last payment for the deceased, however do not issue a P45 • if a beneficiary of a deceased employee is to be paid the pension, the procedures under ‘ Pension recipient does not give you form P45 ’ should be followed.
Other processes around pension recipients, commutation and reporting are defined in the employer guidance and can be accessed here.
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CPI inflation on the rise again Published: 22 March 2023 Emailed: 22 March 2023
The last few months showed a steady, but slow, decrease in the consumer price index (CPI) inflation, dropping back down to 10.1%.
However, the Office for National Statistics (ONS) has released the February 2023 data that indicates CPI for the 12 months up to February is up again, to 10.4%. The largest contributors to the rise were restaurants, cafes, food and clothing, partially offset by reductions in fuel prices.
The Bank of England is targeted with keeping inflation to within 2% per year, the monetary policy committee will be announcing tomorrow (23 March 2023) if any changes to the bank rate will occur.
This will have knock on implications for HM Revenue and Customs’ (HMRC’s) late payment charges, so keep an eye out for the announcement.
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Tips for the bank holiday period from Bacs.co.uk Published: 4 April 2023 Emailed: 5 April 2023
Businesses should plan their payments ahead of the five bank holidays across April and May to avoid disruption to staff and suppliers. Pay.UK, which is responsible for Bacs Direct Credits and Direct Debits, is urging organisations to make sure they have the most up-to- date processing calendar to hand, so they don’t miss or delay important payments.
As bank holidays are Bacs non-processing days businesses and organisations are encouraged to factor these into their scheduling and take advantage of the ability to submit payment files in advance.
First up will be Good Friday and Easter Monday (7 and 10 April respectively), meaning that payments due in accounts before the long weekend will need to be submitted by Tuesday 4 April. Similarly, if payments are due on the first working day following Easter Monday, then the latest submission date for payment files is Wednesday 5 April. During the following month, there will be three bank holidays, including an extra one this year on 8 May, to mark the coronation of King Charles III. This will be in addition to the usual early May and spring bank holidays on 1 and 29 of the month. This means that the latest submission dates for payments due to be credited ahead of these non- processing days will be 26 April, and 3 and 24 May, respectively. To help businesses plan in advance, Pay.UK has produced an updated 2023 processing calendar - reflecting the additional bank holiday for the coronation - which lists all the non-processing days for the rest of the year, together with latest payment submission dates.
cipp.org.uk
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