How does your organisation measure up? Benchmarking survey The benchmarking survey is designed to measure the four key strands of providing a payroll service. Accuracy, timeliness and completeness and the evaluation of the effectiveness of your end to end HR / payroll process Compliance with statutory filing/payment deadlines Data security/confidentiality An average cost per payslip which will help demonstrate, efficiency and value for money
Payroll news
Payroll news
Childcare vouchers and Scottish income tax HM REVENUE & Customs (HMRC) has provided clarification around the income levels used to calculate the appropriate tax and National Insurance contributions relief (‘the exempt amount’) for childcare vouchers following the introduction of Scottish income tax. Section 270A of the Income Tax (Earnings and Pensions) Act 2003 sets out the levels of income at which the exempt amount changes. The exempt amount is based on the level of the recipient employee’s relevant earnings, which the employer has to estimate for the tax year. If the estimated relevant earnings exceed: ● the income tax higher rate limit for the tax year, the exempt amount will be £25 for each qualifying week ● the basic rate limit but not the higher rate limit, then the exempt amount for that tax year will be £28 for each qualifying week otherwise the exempt amount for that tax year will be £55 for each qualifying week. Although the Scottish Parliament has set the Scottish income tax rates and thresholds for the 2017–18 tax year, eligibility criteria for employer-provided childcare vouchers are not devolved to the Scottish Parliament and, therefore, the basic and higher income tax rate limits mentioned above are the rates applicable in the United Kingdom (UK). This means that the same limits apply for all employees in the UK in receipt of childcare vouchers. And briefly… ● Employer Bulletin – HM Revenue & Customs (HMRC) has published issue 65, April 2017 which can be found here: http://bit.ly/2p0xRxu. ● FOT tables – HMRC has released an updated Specification for PAYE Tax Table Routines for Free of Tax (FOT) Arrangements (http://bit.ly/2pcMEWv) for payroll software developers, which incorporates Scottish tax codes, rates and bandwidths and application of the regulatory limit for payrolled benefits in kind. ● Off-payroll working – Finance Act 2017 (http://bit.ly/2qhfJjJ) has inserted a new Chapter 10 into the Income Tax (Earnings and Pensions) Act 2003, which has retrospective effect from 6 April 2017 with respect to the provision of services to a public authority through an intermediary. New section 61L was revised before Royal Assent to define the meaning of ‘public authority’ to exclude retail businesses such as high street pharmacies and opticians that otherwise would have been inadvertently within scope of Chapter 10 because they provide services on behalf of the National Health Service. ● £5, £10, £20 notes – The old paper £5 note ceased to be legal tender on 5 May 2017. From this date these notes can be exchanged for the polymer £5 note at banks or the Post Office. A new polymer £10 note will be issued in September 2017, followed in 2020 by a new £20 note. ● Online CWG2 index – An online index is now available for the CWG2 Employer further guide to PAYE and NICs (http://bit.ly/2pYpssh). ● 2016–17 P11D and P11D(b) returns – Tax year 2016/17 is the last tax year for which P11D and P11D(b) returns can be submitted to HMRC using electronic data interchange or magnetic media. From 2017–18, these returns must be submitted by XML via the Government Gateway.
Diary dates
Email info@cipp.org.uk to register your interest or find out more on cipp.org.uk
5 June 6 June
Last day of tax month 2 First day of tax month 3
Last day for submitting a real time information employer payment summary to apply to tax month 2
19 June
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
22 june
cipp.org.uk @CIPP_UK
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Issue 31 | June 2017
| Professional in Payroll, Pensions and Reward |
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