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A: Where an agent is registered with HMRC but has not been authorised to act online for a client in PAYE, they can seek authorisation to be able to do so. A fast route to ensure the right permissions are in place rather than using paper form FBI2 or the online agent authorisation process, would be for the agent to ask their client to authorise them to act for PAYE through the client’s business tax account (BTA). The client will need to have enrolled for PAYE online for employers. The agent must also be enrolled for PAYE online services for agents and needs to give their agent Govern-ment Gateway ID to the client. To authorise the agent the client will sign into their online BTA (BTA) and action the following: ● Select ‘Manage Account’, and choose the ‘Add, view or change tax agent’ option under the heading ‘Tax Agents’. ● Select ‘PAYE for employers’ and click ‘continue’. ● On the ‘Manage who can access your taxes and schemes’ page, click the ‘Add an agent’ link next to the service to assign the agent for (e.g. PAYE). ● Enter the agent’s Government Gateway ID provided by the agent and click ‘continue’. ● Click on ‘Add Agent’ to confirm. Confirmation will be sent that the agent has been added. By having this authorisation in place, the agent can act for the client in all PAYE matters online, not just for the CJRS scheme. If authorisation was only intended to be used for CJRS claims, the client should advised to remove the agent access via the BTA once the claim is made. Q: During the coronavirus epidemic, several of our employees suspended their use of the childcare voucher scheme that we operate. All employees are back at work and now require the use of childcare. They have asked if we can reinstate their childcare voucher accounts and make deductions as they did prior to the suspension. Is this allowable? A: The key to whether this would be allowable will be dependent on the action taken when the deductions ceased. If the schemes were suspended and left open, then providing that deductions are made and vouchers are provided
within a twelve-month period from the last deduction, the employee will be able to continue to use the scheme and gain the tax relief attached to it. If the employee requested that the scheme be closed, then unfortunately they will not. From October 2018, legislation regarding childcare voucher schemes, advised that employees could not enter into a scheme after this date. If the employee chose to close the scheme at this point, then there would be no option to reinstate, regardless of time frame as the scheme is closed to them. Q: We are currently calculating if an employee would be eligible for statutory maternity pay (SMP). During the earnings reference period the employee was in receipt of furlough pay, which was 80% of her normal pay. When we look at the earnings figures, the earnings requirement will not be met. Is it correct to use what was actually paid or should we look at what she would have earned if she had not been furloughed? A: To qualify for SMP, the employee must have average weekly earnings (AWE) not less than the class 1 NICs lower earnings limit (LEL). The LEL to use depends on the expected date of birth. If the baby is due to be born on or after 19 July 2020, the AWE must not be less than £120 (or £118 if the due date is before 19 July). Typically, the earnings to be included in the AWE calculations are those treated as NICable pay (i.e. those subject to class 1 NICs) in the relevant period. However, revised guidance on GOV.UK refers to certain rules applying where the employee’s period of family-related statutory pay begins on or after 25 April 2020; see https://bit.ly/2xLy126. If the employee was on furlough and was paid with help from the CJRS during any part of the relevant period, there are different rules about how to work out their AWE. This is to ensure eligibility for SMP and the earnings-related rate are not affected if the employee’s wages are lower than normal because of being furloughed. The earnings to use for the part of the relevant period for which the employee was furloughed will be the higher of either what she actually received from her employer or would have received had she not been on furlough. n
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| Professional in Payroll, Pensions and Reward |
Issue 61 | June 2020
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