Payroll news
Payroll news
Tax-free childcare scheme concerns ACCORDING TO Nursery World , some providers of childcare voucher have reported not being able to sign up to tax-free childcare (TFC), either because they have not received a temporary password from HM Revenue & Customs (HMRC) or the one they have received does not work. Further, the Childcare Voucher Providers Association (CVPA), which has concerns that only a third of such providers in the UK have signed up to the TFC scheme, is urging parents to think carefully before switching irreversibly from childcare vouchers to TFC because many families could be worse off financially by the change. The CVPA is also calling on the government to reconsider plans to close vouchers to new users from April next year, as they believe it is far too premature to close off a popular, well-established and functioning scheme. Deduction for a strike day THE SUPREME Court has unanimously held in the case Hartley v King Edward VI College that unless contracts specifically state otherwise any deduction of pay in relation to a teacher taking lawful strike action must be at the rate of 1/365 of their annual pay, not 1/260 as the college had done. In upholding the appeal against the decision of the Court of Appeal, the Supreme Court analysed the wording of the Apportionment Act 1870 which provides that salaries shall be “considered as accruing from day to day, and shall be apportionable in respect of time accordingly”. The Supreme Court considered the teachers’ evidence that demonstrated that they regularly performed their duties during evening, weekends and/ or days of annual leave. Accordingly, it was appropriate to have a deduction of 1/365. Though this judgment is specific to teachers, the principle may be applicable to other employees whose days of work are not ascertainable.
Payroll giving awards changes CELEBRATING THIRTY years of payroll giving, the Association of Payroll Giving Associations has announced that a Diamond Payroll Giving Quality Mark will be introduced in 2018 for those companies that have 30% or more employees giving from their pay. The Diamond Award will be officially unveiled at this year’s National Payroll Giving Excellence Awards (see page 50). In addition, the criteria for the other Quality Mark awards are being simplified to encourage more employers to put themselves forward for recognition. Treatment of the self-employed IN ITS report Self-employment and the gig economy (http://bit.ly/2prIPvp), the Work and Pensions Select Committee contends that the government must set out a roadmap for equalising National Insurance contributions (NICs) for the self-employed and employees. The report notes that though entitlement to all the services funded by NICs is almost equalised self- employed workers contribute far less than employees. The Committee observes that an assumption of the employment status of ‘worker’ rather than ‘self- employed’ by default would protect them and the public purse. Thus, by default, workers would have the employment rights commensurate with that status, and the burden of proof of employment status would be placed on the company rather than on – as it currently stands – the worker. The Committee comments that: ● though self-employment is neither inherently good nor bad, it can allow companies to evade responsibility for their workers’ wellbeing and increase their profits, and ● it is incumbent on government to close loopholes that incentivise this behaviour. Advisory fuel rates THE ADVISORY fuel rates changed with effect 1 June 2017 and apply, until further notice, to all journeys made on or after this date. For one month from the date of change, employers could choose to use either the previous or revised rates. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.
Diary dates
Automatic enrolment staging date for new employers where PAYE income first payable between 1 April 2013 and 31 March 2014
1 July
5 July 6 July
Last day of tax month 3 (tax quarter 1) First day of tax month 4 (tax quarter 2)
Last day for submitting a real time information employer payment summary to apply to tax month 3
19 July
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 Automatic enrolment staging date for new employers where PAYE income first payable between 1 April 2014 and 31 March 2015
22 July
1 August
5 August 6 August
Last day of tax month 4 First day of tax month 5
Last day for submitting a real time information employer payment summary to apply to tax month 4
Engine size
Petrol
Diesel
LPG
18 August
11p
7p
Up to 1400cc
9p
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
1401cc to 1600cc 1601cc to 2000cc
14p
9p
11p
22 August
21p
13p 14p
Over 2000cc
15
| Professional in Payroll, Pensions and Reward |
Issue 32 | July/August 2017
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