MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
Correcting apprenticeship levy errors Q: A client has overclaimed the apprenticeship levy allowance for the last three tax years. To rectify this, do they just need to re-file the employer payment summary (EPS) in month 12 of each affected tax year and update the allowance amount? They claimed the full £15,000 but should have only claimed £3,000 as they’re a connected company. They’ve been advised to resubmit the EPS with the correct £3,000 allowance for each year, and to calculate the additional levy due to HM Revenue and Customs (HMRC). Is this correct? A: Yes. To correct the apprenticeship levy figure for previous years, you’d need to send an amended EPS with the correct year to date figures for those years. It would be best to make payment for the underpaid amount as soon as possible to HMRC. Further guidance on this topic can be located here: https://ow.ly/ nGWY50UYwfn.
Job titles and gender fluidity Q: Our human resources department has provided new starter details for an employee who doesn’t identify with traditional gender titles, such as Mr, Mrs, Miss or Ms, but with ‘Mx’. Will real time information (RTI) accept ‘Mx’? A: There’s no validation on the title field on the full payment submission (FPS). As a result, you can report any combination in this field. Further information can be found in the RTI Data Items Guide (see item 5A): https://ow.ly/MAOi50UYwna.
any day in the ‘qualifying week’. The ‘qualifying week’ is the 15th week before the baby is due. This is different if you adopt.” Relief at source (RAS) pension and national minimum wage (NMW) Q: We run a RAS pension scheme, so we take pension contributions as a net pay deduction. Does this impact NMW? A: Running a RAS pension scheme where you take employees’ pension contributions from their net pay will have no impact on NMW. However, there are different considerations when it comes to a salary sacrifice pension scheme, as a salary sacrifice pension arrangement must not reduce an employee’s cash earnings below the NMW rates. Director National Insurance contributions (NICs) Q: An employee has become a director part-way through the tax year (21/12/2024). We’re aware that directors have their NICs calculated on an annual basis, but wanted to know if we can change the NICs calculation method mid-tax year for the affected individual? A: A person who’s a director at the beginning of the tax year has an annual earnings period for that tax year, even when they cease to be a director prior to the tax year end. However, when a director is first
What are the eligibility criteria for statutory paternity leave?
Paternity leave eligibility Q : Is statutory paternity leave a day one right for all employees? A: There’s guidance available regarding statutory paternity leave online, as follows (taken from https://ow.ly/YmjK50UYwrx): “Paternity Leave You must: l be an employee l give the correct notice l have been continuously employed by your employer for at least 26 weeks up to
How do you correct an error regarding the apprenticeship levy for previous tax years?
| Professional in Payroll, Pensions and Reward | April 2025 | Issue 109 8
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