PAYROLL news
HM Revenue and Customs (HMRC) update on the National Insurance contributions (NICs) treatment of relevant motoring expenditure (RME) IN ISSUE 114 of HMRC’s Agent Update , there was an update on the NICs treatment of RME, following the outcome of a recent Upper Tribunal decision. The update can be accessed here: https://ow.ly/ kEmh50Q8hU5. This is a subject that was discussed in the ‘hot topic’ article seen in the November issue of Professional magazine: ow.ly/RqZa50Q8iO8.
Where employees drive their own vehicle for work, relief from tax and a disregard from class 1 NICs can be applied to any business miles which have been driven. To qualify for the NICs disregard, the use of the vehicle must be classed as RME. In the case of Wilmott Dixon and Laing O’Rourke (which HMRC lost), it was determined that the type of payments which can be deemed as coming under the definition of RME is much broader than previously proposed by HMRC. It was found that it’s not just payments which relate to the actual use of the car but also those associated with the potential use of the car too. This has a subsequent impact on those in receipt of fixed sum car allowances, which centre on anticipated use of a qualifying vehicle. These types of payment could potentially benefit from a higher amount of disregard as the amounts classed as RME could be higher. We now see the following situation arising – where NICs have been applied to car allowance payments for previous periods, where they shouldn’t have been, a refund of those overpaid NICs can be claimed. All existing rules apply in terms of making a successful claim, and evidence must be provided to demonstrated quantified and evidenced business miles driven. Please note, there’s no disregard available on payments made within the definition of RME if salary has been sacrificed from an individual’s pay. HMRC guidance on this topic is currently being updated. The Agent Update contains additional information regarding how to claim refunds for both employers and employees.
Prepare for Transfer of Undertakings (Protection of Employment) (TUPE) changes WITHIN THE Department for Business and Trade’s response to the EU Retained Law consultation was an update on changes to how we deal with TUPE for small businesses and very small transfers. See the response here: https://ow.ly/xKuy50Q8ifJ. The draft regulations propose that these new rules would impact transfers taking place on or after 1 July 2024. Find the regulations here: https://ow.ly/UFRG50Q8igV.
“The government will proceed with the planned reforms to the TUPE consultation requirements. These reforms will allow small businesses (with fewer than 50 employees) and businesses of any size undertaking a small transfer (of fewer than 10 employees) to consult directly with their employees if there are no existing worker representatives in place.” These changes are permissive only; businesses will still have the choice to elect and consult with a worker representative if they would prefer to do so. All existing protections for discrimination stay in place and so employers must still conduct individual consultations with the same care and consideration as normal.
Diary dates
Last day for submitting a real time information employer payment summary to apply to tax month 8 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
19 December
22 December 25 December
Merry Christmas! Happy new year!
1 January 5 January 6 January
Last day of tax month 9 First day of tax month 10
Last day for submitting a real time information employer payment summary to apply to tax month 9 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
19 January
22 January 5 February 6 February
Last day of tax month 10 First day of tax month 11
| Professional in Payroll, Pensions and Reward | December 2023 - January 2024 | Issue 96 8
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