Where none of these conditions apply your employer scheme will be cancelled and a letter issued to your business address to advise you of the action taken. Once the scheme has been cancelled you will not be able to submit any PAYE submissions in Real time. If your scheme should not have been cancelled the letter covers who you should contact in HMRC to request that your scheme is reopened.
This information was published in the latest issue of the Employer Bulletin .
Transferable personal tax allowance for married couples and civil partners
10 October 2013
David Cameron has announced that £1,000 of the personal allowance will be transferable between eligible couples from 2015.
We reported rumours earlier in the year that tax breaks would be introduced for married couples but at the time no detail was provided.
The BBC has reported that the prime minister said four million couples would benefit from a £1,000 transferable tax allowance from 2015. The move, announced ahead of the Tory conference, comes after a deal with the Liberal Democrats to introduce free school meals for children under eight. The tax break would apply if couples are both basic rate tax payers with one spouse earning less than the personal allowance - the amount of income you can receive each year without having to pay tax on it. This will be just over £10,000 in 2015. The measure would also include 15,000 couples in civil partnerships. Cameron explained how the scheme would work , "From April 2015, if neither of you are higher rate taxpayers, you will be able to transfer £1,000 of your tax-free allowance to your spouse. In effect, if you pay the basic rate of tax and your partner doesn't use all of their personal allowance, you'll be able to have some of it. Most couples who benefit will be £200 a year better off as a result." CIPP comment Claims are expected to be made online so at this stage we would assume that the transferable allowance will have no impact on the payroll function; other than a possible increase in enquiries as to why an employee’s tax code has changed. We will as ever keep you updated as and when further details become available.
New PAYE messages to employers from HMRC
11 October 2013
From next week, HMRC will start to send four types of new messages to employers to help them keep their PAYE up-to-date.
These messages will take two formats: 1. The first three are generic electronic messages to warn the employer that their PAYE submissions and payments appear to have fallen into arrears. 2. The fourth one will be a letter, telling an employer that HMRC are cancelling a PAYE scheme that has been inactive for 120 days. The electronic messages are not penalty notices and therefore an employer should not appeal against them. These messages do not replace the existing compliance communications, which will continue as now.
CIPP Policy News Journal
16/04/2014, Page 294 of 519
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