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Learn how to process a number of common termination packages correctly, from redundancies to contractual breaches, retirement and death-in-service. Termination payments
“It is possible to reopen an employer record which was previously cancelled. From 6 April 2011 an employer record can only be reopened in the year the record was originally cancelled or in the following year. This can happen when l A business has now started to trade l A record was cancelled in error l A business now has employees liable to Income Tax and / or National Insurance. When an employer record is re-opened, the computer will automatically remove the previous cancellation date.” The CIPP is aware this can take up to 72 hours, but members have reported that their requests to reopen an employer record have been successful.
What are the tax implications of allowing employees to charge their cars at the office?
work (for a period of over 56 days) and is now sick again. Are they eligible for SSP for another 28 weeks? A: I can confirm that if the employee has returned to work for more than eight weeks, the new absence is not linked, so yes, they would be entitled to 28 weeks of SSP again. Charging electrical vehicles at the office Q: There are several employees who have electric company cars. If the employees charge their cars at the office location, is this a benefit in kind (BiK) and would it need to be reported on a P11D? A: I can confirm that if the employer allows the employees to charge company electric cars at work, there’s no reportable BiK. It’s important to note, however, that this is the current situation, which could potentially change at some point in the future. This is one of several relaxations in place to encourage the take-up of electric vehicles. Do payslips need to be issued even when there’s no pay data to report? Q: Do we need to provide payslips to all employees, even if there’s been no activity that pay period (nil pay), or for zero hours workers who haven’t worked? A: HMRC guidance states: “Your payslip must show: l your earnings before and after any deductions l the amount of any deductions that may change each time you’re paid, for example tax and National Insurance l the number of hours you worked if your pay varies depending on time worked. Employers must also explain any deductions fixed in amount, for example, repayment of a season ticket loan. They can choose to do this either on a payslip, or in a separate written statement.” If there are no earnings or deductions, there’s no requirement to issue a payslip. The guidance noted can be found here: https://ow.ly/Hg4650PK7sc. n
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How do you treat e-vouchers for tax and NI purposes?
CPD 3 points
Is there a specific way to pro rata salary calculations?
The correct way to pro rata salary calculations Q: Our client has a new employee who’s questioning the pro rata salary calculation used. We use 260 days per annum for the day rate rather than deducting days not worked. Do you have anything to show that this is the correct way to calculate pro rata salaries? A: The 260 method is one regularly used in practice. We’d advise that any method of calculation should be in the company handbook or company policies, but there’s nothing in guidance from HMRC. If the company’s policies and employment contracts are silent, then using a 365 divisor is the only lawfully accepted method for pro rating. The company should seek employment law advice when writing new policies regarding apportionment of salary. The following link to the Apportionment Act (1870) states that salaries need to be divided by 365 (if not otherwise stated in the employment contract). The day-to-day apportionment is specified in Regulation 2: https://ow.ly/VneS50PK6PL. Entitlement to statutory sick pay (SSP) Q: An employee was off sick for 28 weeks and in receipt of SSP, then came back to
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| Professional in Payroll, Pensions and Reward |
Issue 94 | October 2023
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