Policy hub
The ex-employee is requesting a P60 certificate for the 2016/17 tax year, but should we provide one? A: The employer cannot issue a P60 certificate to this ex-employee as they received a P45 in November 2015. Indeed, the employer could not issue a P60 certificate for either the 2015/16 or 2016/17 tax years. The reason is because one of the conditions to issue the P60 is that the employee is still in the employment on 5 April. As the payments of bonuses were made after the form P45 was issued the employer should have operated tax code 0T on a non-cumulative basis, and reported in the FPS that payments were being made after leaving. If a pay slip was sent to the ex-employee that should suffice as notification of earnings; however, the employer could provide the employee with a statement of earnings on company-headed notepaper as well. Q: If an employee is engaged under an apprenticeship contract would they be paid at the minimum rate of £3.40 regardless of their age? At the end of the apprenticeship would the national minimum wage (NMW) be paid until the employee reaches the age of 25 and then the national living wage (NLW) would kick in? A: It is up to the employer to decide what rate of pay they will pay the apprentice, but there is the minimum apprenticeship rate which they should not go below. If the apprentice is age nineteen or over in the first year of the apprenticeship they can be paid the national minimum apprenticeship rate, but after that first year the employer has to pay the apprentice the same NMW/NLW rate that is applicable to employees; i.e. if they are over 25 the NLW rate would be paid (which is £7.50 currently). This link to GOV.UK explains what rate should be paid: https://goo.gl/ tY5qbR. n
NICs. This is where the employee earns more than the upper earnings threshold (UET) in at least one of the jobs. The employee must apply for a form CA2700 from HMRC so that he will pay 2% on all earnings in the other employments. Where HMRC allow an employee to defer they will send form CA2700 to the relevant employer(s) – there could be more than one employer if the employee has several employments. If you do not hold a CA2700 for this employee then you cannot apply the deferment at this time. HMRC provide a guide for employees applying for a deferment, and on page two of the document it states that an employee would be too late to apply for a deferment if they were applying for a closed tax year. Therefore the employee would not be able to get a refund for tax refund from HMRC by writing to: National Insurance Contributions and Employers Office, HM Revenue and Customs, BX9 1BX. Guidance notes for employees who want to apply for deferment can be found at https://goo.gl/3tXVZ3. Q: Could you please advise me if a female partner is entitled to SPP and SPL if they don’t qualify for statutory adoption pay or leave because they are the egg donor? A: SPP and SPL is open to mixed or same sex couples. However, the partner would need to satisfy all conditions for SPP and SPL: ● she would need to be employed for at least twenty-six weeks up to and into the qualifying week ● be employed by the company up to date the child is born ● satisfy the earnings test of at least £113 per week in the relevant period and ● give the correct notice to take SPL. You can find guidance on the GOV.UK website here: https://goo.gl/k7SNQ5, to establish if your employee is eligible for SPP and SPL. Q: We have had an enquiry from a former employee who left the business in November 2015. They were given a form P45, but had bonus payments made to them over a twelve-month period ending in November 2016. year 2016/17 from the employer. The employee could apply for a
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Issue 35 | November 2017
| Professional in Payroll, Pensions and Reward |
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