The Chartered Institute of Payroll Professionals
Policy Bi-Monthly Newsletter – September 2016
New employee coming to work from abroad 22 August 2016
The guidance on PAYE has been updated for employees who come to work in the UK from abroad.
The guidance New employee coming to work from abroad details the differences in calculating and making deductions for employees who come to work in the UK from abroad.
The dates and tax codes have been updated to reflect 2016-17 information within the table in the section, ‘ Using the right tax code for a seconded employee’ .
Notice of transfer of surplus Income Tax allowances (575(T)) 22 August 2016
An online forms service is now available to ask HMRC for a transfer of unused Married Couple's Allowance or Blind Person's Allowance to a spouse or civil partner.
To tell HMRC that you want to transfer unused Married Couple’s Allowance or Blind Person’s Allowance to your spouse or civil partner, you can still print the postal form , fill it in by hand and post it to HMRC.
If you use the new online form service (sign in to, or set up a Government Gateway account) you will get a reference number that you can use to track the progress of your form.
Benchmark Scale Rates for inward assignees 23 August 2016
The 15 hour scale rate can now be applied to inward assignees subject to them meeting the qualifying conditions and provided that there is a robust checking system in place.
Exemption for amounts which would otherwise be deductible: Payments at a benchmark rate
The income Tax (Approved Expenses) Regulations 2016. (SI 2015/1948)
For periods prior to 6 April 2016 see EIM30050 .
Employers wishing to pay or reimburse expenses may use the benchmark rates set out in the Income Tax (Approved Expenses) Regulations without needing the prior approval of an officer of Revenue & Customs.
The regulations set out the rates which employers can use for payment or reimbursement of employees expenses where the relevant qualifying conditions are met. These regulations replace the previously published benchmark scale rates (See EIM05230 ) These rates are the maximum tax and NICs free amounts that can be paid by employers who choose to use the system. An employer can pay less than these rates if it wants to do so. If a higher payment or expense reimbursement is made without agreeing a bespoke scale rate with HMRC (see EIM30250 ), any excess over the published rate should be subject to tax and NIC’s. Although it will no longer be necessary to undertake a sampling exercise to establish that the amount paid is a reasonable estimate of expenses employees actually incur in these circumstances, employers will still need to have a checking process in place, (see EIM30270 ) and be able to demonstrate that they satisfy the travel and subsistence rules at Section 337 ITEPA 2003 (see EIM32350 onwards) and Section 338 ITEPA 2003 (see EIM32000 onwards).
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