POLICY HUB
TAKE YOUR FIRST STEPS TO BECOMING A CERTIFIED PAYROLL PROFESSIONAL
Correcting payrolled car benefit Q: We payroll company cars. We incorrectly reported this BiK at a higher amount for one of our employees for tax year 2023/24. We need to correct this to allow them to recoup their overpaid tax, and to allow us to reclaim the Class 1A NICs we overpaid. What’s the best course of action to take? A: As an excessive BiK figure has been reported through payroll, a revised 2023/24 year end submission must be prepared. This should be submitted to HMRC via a full payment submission (FPS) detailing the revised year to date BiK figure. As the benefit is a company car, you’ll also need to amend any data concerning the car(s) if required (e.g., any dates of unavailability). This will trigger that there’s been an overpayment of tax, which HMRC will address with the employee directly. A revised P60 for tax year 2023/24 will also need to be provided to the employee and a P11D(b) for the same tax year must be resubmitted to detail the revised, lower Class 1A NICs reportable.
If earnings for the directorship are paid to a former director in the same tax year as their appointment ends: l add these earnings to the total earnings already paid l work out NICs on the total earnings using the director’s earnings period. This applies even if the director becomes an employee of the company. For the rest of the tax year any earnings paid, including those paid as an employee, should be assessed for NICs using the annual or, if the director was appointed after the beginning of the tax year, the pro rata annual earnings period.”
£1,695 + VAT
PAYROLL TECHNICIAN CERTIFICATE
Covers the core skills required to administer the payroll function including processing deductions, calculating National Insurance, pensions, student loan deductions and statutory payment considerations.
PAYROLL TECHNICIAN CERTIFICATE -ADVANCED-
£2.645 + VAT
“How do I ensure I’m reporting the correct information for GPG purposes?”
Includes the core skills from the Payroll Technician Certificate but with three extra modules covering: annual leave entitlement and holiday pay automatic enrolment and pension principles and administering salary sacrifice for payroll.
Gender pay gap reporting Q: Should backpay be included within the ordinary pay for the purposes of gender pay gap (GPG) reporting? A: Backpay shouldn’t be included in the ordinary pay figure if it was paid in the relevant period but relates to a different period. Please see an extract from the guidance (https://ow.ly/ahpv50Uhu5k). “Not included in ordinary pay Ordinary pay does not include: ● overtime pay ● allowances earned during paid overtime ● redundancy pay ● pay related to termination of employment ● payments for untaken annual leave ● repayments of authorised business expenses – for example, a taxi fare to see a client ● benefits in kind – non-cash benefits such as company cars or private medical insurance ● interest-free loans, such as season ticket loans. Only include earnings paid in the pay period that includes your snapshot date. Do not include any ordinary pay that you should have paid in a different pay period. This might include a payment to correct a previous accidental underpayment. Do not include any earnings you have not yet paid, or have already paid, even if you should have paid them in the pay period that includes your snapshot date.” n
Already done the Payroll Technician Certificate? You can book on the Payroll Technician Certificate TOP UP to complete the additional modules from the ADVANCED course for £995 + VAT
“How do you correct a company car BiK figure from a previous tax year?”
Directorship ends mid-year Q: A director processed through payroll has resigned from their director role mid- year. They will be staying on the payroll as an employee. How will this impact their NI calculation? Do we process them as an employee now, or keep them as a director until the end of the current tax year, changing to an employee from the start of the next tax year? A: A person who’s a director at the start of a tax year has an annual earnings period for that entire tax year, as per Regulation 8(3) of The Social Security (Contributions) Regulations 2001 (https://ow.ly/ fOe350UhtXl). This applies even if they cease to be a director mid-way through the tax year. The following snippet of guidance, taken from https://ow.ly/YSan50UhtPp, highlights this: “34 Earnings paid in the same tax year after appointment ends
Developed, delivered, assessed, and awarded by
Visit ippe.org.uk/study for full details and to enrol today
Scan to book
A subsidiary of the Chartered Institute of Payroll Professionals
9
| Professional in Payroll, Pensions and Reward |
Issue 107 | February 2025
Made with FlippingBook - Online magazine maker