Payroll news
Employer-provided living accommodation FOR INCOME tax purposes, an extra statutory concession (ESC) applies to living accommodation provided by the employer to an individual as a ‘representative occupier’. The ESC relates to posts which existed before 6 April 1977 where certain conditions are met, such as the employee resides in living accommodation provided rent-free by the employer and it is a contractual requirement the employee resides there and not anywhere else. The government has decided not to bring this ESC into legislation and so it will be withdrawn with effect from 6 April 2021. Employers and employees affected by this should make necessary contractual arrangements. Further information can be found on page 9 of the April 2020 issue of the Employer Bulletin . And briefly… ● P46(Car) return – A new version of this return – whether submitted via paper or online – which is to be used by employers for reporting to HM Revenue & Customs (HMRC) the provision or withdrawal during tax year 2020/21 of a car for an employee’s private use, can be found here: https://bit.ly/3dHeM90. ● Employer Bulletin – Issue 83 (April 2020), which contains extensive information in a wide range of topics, can be found here: https://bit.ly/2YXDy0w. A challenge picked out by the LPC is around workers’ access to payslips, which is an area where the government has recently acted to ensure payslips state the hours for which workers are paid. The LPC observes that there is room to improve the promotion of new regulations, but also to look at their enforcement. The LPC makes several recom- mendations, including that the government reviews the regulations on records to be kept by an employer, to set out the minimum requirements needed to keep sufficient records. Minimum wage compliance THE LOW Pay Commission (LPC) has recently published the report Non-compliance and enforcement of the National Minimum Wage (https://bit.ly/35PQfvW), the majority of which was written before the coronavirus outbreak. The report comments that “the current situation has also brought to wider attention the importance of low-paid workers to many vital services, including health and social care and the production and distribution of food”, adding that an “effective enforcement system is essential in protecting workers in these and other sectors”. The LPC estimates that over 420,000 workers were reported as receiving less than the minimum wage they were entitled to in April 2019. Around 360,000 workers entitled to the national living wage (NLW) did not receive it – 22% of all workers covered by the rate. Both estimates represent slight falls on the previous year. Around one in three underpaid NLW workers were paid within 5p of the NLW, a quarter were paid between the current and the previous rate, but around 115,000 NLW workers were reported to be paid more than £1 per hour less than they were entitled to. The report notes that the characteristics of underpaid workers tend to track those of low-paid workers in general, with some variations: ● women are more likely to be underpaid than men ● those working full-time are more likely to be underpaid than their part-time counterparts, and ● salaried workers are much likelier to be underpaid than those paid hourly.
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Diary dates
Last day for submitting a real time information employer payment summary to apply to tax month 2 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
19 June
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22 June
Last day of tax month 3 First day of tax month 4
5 July 6 July
| Professional in Payroll, Pensions and Reward | June 2020 | Issue 61 20
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