CIPP Payroll: need to know - 2023-24

The Chartered Institute of Payroll Professionals

News On Line

The sum has been issued to 485 workers in Bradford who were underpaid the NMW or National Living Wage (NLW) in the 2022/23 financial year. HMRC has announced that 74,000 letters to workers has been issued in the city and surrounding areas to remind people of the current minimum wage rates and to advise on how to spot mistakes and report any concerns about being underpaid. Organisations in the Bradford area, including local accountancy firms, tax advisers, community groups and charities, are being reminded by HMRC about the minimum wage so that they can help reach the most vulnerable workers at risk of not being paid the correct wage. HMRC has also written to 8,000 employers to remind them of their legal obligations and highlight common mistakes which can result in underpayment. The letters contain a checklist for employers to identify any mistakes they may be making and offer the opportunity to have a support call with a specialist. More than 300 employers have so far taken up the offer.

Marc Gill, Director of Individuals and Small Business Compliance at HMRC, said:

“People who are working, in Bradford and across the UK, deserve to get the pay they are due, which is why HMRC is raising awareness and providing advice to workers and their employers.

HMRC will always take action against employers who fail to meet their legal obligations, but it is really important that people who think they may be being underpaid report it. Even if you are not affected yourself, you can help by reminding friends and fa mily to check their pay and make sure they are not losing out.”

The full press release can be found here.

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Employment Related Securities Bulletin 51 Published: 5 June 2023 Emailed: 7 June 2023

The Employment Related Securities Bulletin 51 has been published by HM Revenue and Customs (HMRC). The guidance outlines the updated Save As You Earn (SAYE) bonus rate mechanism.

Below are the key points covered in the HMRC guidance:

• HMRC has updated its mechanism for calculating the bonus rates for SAYE participants. The mechanism will apply from 18 August 2023 and is expected to result in a bonus being provided to new participants for the first time since 2014 • this update follows a review launched in June 2022 to consider options to simplify the mechanism. The bonus rates will now be calculated with reference to the Bank of England bank rate (also known as the ‘base rate’), providing greater certainty and transparency for users

• details of how the bonus rate is calculated are set out in the bonus rates automatic mechanism. The new bonus rates automatic mechanism will come into effect from 18 August 2023 for new invitations to the scheme, with future changes in the bank rate determining bonus rates going forwards

• to support the new mechanism, HMRC will record the bonus rates, early leaver rate and the effective date of any change in ‘ Change in bonus rates for Save As You Earn (SAYE) Share Option Schemes ’. For now, the current rates have been provided, but HMRC is expecting to add the rate which will apply from 18 August 2023 following the confirmation of the bank rate in early August 2023

• HMRC have issued a new ‘ Specimen Save As You Earn (SAYE) prospectus ’ to give effect to the mechanism. This prospectus will not require replacement to update the bonus rate in future.

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