A message from the Business Secretary: A deal with the EU has been reached and businesses should take action

I am delighted that we have agreed a deal with the European Union and I am confident that the United Kingdom will thrive outside the EU and cement its position as the best place in the world to start, grow and run a business. The deal with the EU means the UK can now regulate … Continue reading A message from the Business Secretary: A deal with the EU has been reached and businesses should take action

Rogue employers named and shamed for failing to pay minimum wage

The 139 named companies failed to pay £6.7 million to over 95,000 workers. 139 companies, including major household names, have short-changed their employees and have been finedoffending firms failed to pay £6.7 million to their workers, in a completely unacceptable breach of employment lawBusiness Minister Paul Scully says the list should be a ‘wake-up call’ … Continue reading Rogue employers named and shamed for failing to pay minimum wage

Revised New Starter Checklist for April 2021 proposed – Student and Postgraduate Loan questions simplified

April 2021 sees the introduction of the Scottish Student Loan deduction with the new Student Loan Plan 4. As a result the New Starter Checklist (historically known as form P46) is being revised with easier and more straightforward and combined Student Loan and Postgraduate Loan questions referenced as Question 9 and 10. The New Starter … Continue reading Revised New Starter Checklist for April 2021 proposed – Student and Postgraduate Loan questions simplified

UK-EU future relationship agreement: social security coordination

Dear @PAYadvice, The UK has reached an agreement with the EU on its future relationship. The social security coordination provisions in this agreement ensure workers who move between the UK and the EU only have to pay into one country’s social security scheme at a time. Going to work temporarily in the EU under the … Continue reading UK-EU future relationship agreement: social security coordination

Social security contributions for workers coming to the UK from the EEA or Switzerland from 1 January 2021

Check where you need to pay social security contributions from 1 January 2021, if you’re a worker from the EU, Norway, Iceland, Switzerland or Liechtenstein working in UK. From 1 January 2021, if you’re an employee, self-employed or an employer, where you pay your social security contributions will depend on your circumstances and the country … Continue reading Social security contributions for workers coming to the UK from the EEA or Switzerland from 1 January 2021

Tier review results in additional 50,000 business closures

A number of areas will move into higher tiers from 00:01 on Saturday 26th December. The government has decided to act ahead of the formal review point, to contain the spread of the new strain of #COVID19. It is thought that an additional 50,000 business will be required to close until further tier reviews allow … Continue reading Tier review results in additional 50,000 business closures

December Furlough claim deadline and further Tier 4 disruption

December 2020 has been a very strange month. At short notice swathes of businesses were ordered to close as a new Tier 4 restriction regime was introduced on Saturday 19th December effective from Sunday 20th December. Additional announcements made on Wednesday 23rd December expand the Tier 4 areas with a further 50,000 businesses impacted by … Continue reading December Furlough claim deadline and further Tier 4 disruption

Up to 30,000 workers to help reap 2021 harvest

Measures announced to support farmers and growers next year, including an extended and expanded Seasonal Workers Pilot The number of workers permitted to travel to the UK to pick and package fruit and vegetables will be increased for next year’s harvest, the government has announced today 22nd December 2020. The Seasonal Workers Pilot, originally launched … Continue reading Up to 30,000 workers to help reap 2021 harvest

Statutory Sick Pay (SSP) rates confirmed for use from 6th April 2021

HMRC Software Development Support Team (SDSTeam) have confirmed the Statutory Sick Pay (SSP) rates and daily equivalents that are to be used from 6th April 2021. The Threshold to qualify remains at average weekly earnings of £120. The weekly amount of SSP rises to £96.35 per week. The same weekly SSP rate applies to all … Continue reading Statutory Sick Pay (SSP) rates confirmed for use from 6th April 2021

Statutory Payment Rates effective 4th April 2021 confirmed – SMP, SAP, SPP, ShPP & SPBP

The HMRC Software Developers Support Team (SDSTeam) have confirmed the Statutory Payment Rates which commences for weeks commencing from Sunday 4th April 2021. The weekly average earnings threshold remains as £120. He standard weekly rate rises to £151.97. SP rates 2021-22Download Part of Preparations for tax year 2021/2022 PAYadvice.UK 22/12/2020 updated 28/12/2020

National Insurance Contribution changes 2021/2022

The HMRC Software Developer Support Team (SDSTeam) have provided the following in relation to National Insurance Contributions (NICs) applicable from 6th April 2021:- The government made a Written Ministerial Statement that it will use the September Consumer Price Index as the basis for setting the National Insurance limits and thresholds, as well as the rates … Continue reading National Insurance Contribution changes 2021/2022

2021-2022 Welsh Rate of Income Tax (WRIT) – No change

The Welsh Government draft budget has proposed a no change basis for Income Tax for the 2021/2022 tax year - Wales stays in alignment with England and Northern Ireland (sometime referee for Income Tax purposes as the rest of the UK or rUK. The following is extracted from the Welsh Government draft budget document at … Continue reading 2021-2022 Welsh Rate of Income Tax (WRIT) – No change

Advice for clinically extremely vulnerable in new Tier 4 areas – do not attend work

This group is advised to stay at home at all times, unless for exercise or medical appointments, and not to attend work, even if they are unable to work from home. Updated guidance is being issued for the clinically extremely vulnerable in areas placed into new Tier 4 restrictions from 20th DecemberThis group of the … Continue reading Advice for clinically extremely vulnerable in new Tier 4 areas – do not attend work

Tier 4 Furlough Chaos – Payroll impacted? Reprocess or adjust pay and claims!

Many a payroll professionals worst nightmare has just happened! Christmas payrolls are a strain at the best of times with the practice of early payments, mixed with extended flexible furlough and the operation of tight deadlines under the Coronavirus Job Retention Scheme (CJRS). With the Prime-ministers announcement of further lockdown measures for swathes of London, … Continue reading Tier 4 Furlough Chaos – Payroll impacted? Reprocess or adjust pay and claims!

Christmas holiday, Christmas bonus and the Coronavirus Job Retention Scheme

As part of his update from Thursday 17th December 2020, Jim Harra of HMRC has provided the following clarifications. Can I use CJRS to pay for holiday leave? If employers have furloughed employees because of the effect of coronavirus on their business, they can claim under the CJRS for periods of paid leave they take … Continue reading Christmas holiday, Christmas bonus and the Coronavirus Job Retention Scheme

Extension to the Coronavirus Job Retention Scheme – what you need to do now

Dear @PAYadvice, The UK Government has reviewed the terms of the scheme, and announced that the Coronavirus Job Retention Scheme (CJRS) will remain at the current level of 80% of usual wages for the hours not worked, and will be extended until the end of April‌‌ 2021. Reminder of monthly deadlines Thank you if you submitted you … Continue reading Extension to the Coronavirus Job Retention Scheme – what you need to do now

Statement: Tax exemptions: Employer-reimbursed coronavirus antigen tests and easement for employer-provided cycles exemption

Employer-reimbursed coronavirus antigen tests: Exemption from Income Tax and National Insurance contributions On 9 July 2020, the Government agreed to introduce an income tax exemption and National Insurance contributions (NICs) disregard to ensure that Coronavirus antigen testing provided to employees outside the Government’s national testing scheme will not attract tax and NICs liabilities. The Government … Continue reading Statement: Tax exemptions: Employer-reimbursed coronavirus antigen tests and easement for employer-provided cycles exemption

Budget 2021 – date announced

The Chancellor of the Exchequer, Rishi Sunak, has announced that the government will publish the Budget on Wednesday 3 March 2021. The Budget will set out the next phase of the plan to tackle the virus and protect jobs and will be published alongside the latest forecasts from the Office for Budget Responsibility (OBR). Opinion … Continue reading Budget 2021 – date announced

Chancellor extends furlough and loan schemes

certainty for millions of jobs and businesses as furlough scheme extended until the end of April 2021businesses struggling will have now until the end of March to access government generous loan schemesChancellor also confirmed that the Budget will be on the 3 March and set out the next phase of the plan to tackle the … Continue reading Chancellor extends furlough and loan schemes

ACAS – ‘If you’re one of the elves working over Christmas, what are your rights?’

ACAS have guidance on employment rights for those working during the Christmas season. If you have to work over the Christmas period, what are your rights? Some of the key considerations ACAS raise include: your employer must pay you at least the minimum wage, though this depends on how old you arethere is no entitlement … Continue reading ACAS – ‘If you’re one of the elves working over Christmas, what are your rights?’

Employer reimbursed Coronavirus swab tests – Income tax exemption and National Insurance disregard

The Government is to introduce a temporary income tax exemption and National Insurance contributions (NICs) disregard, to ensure that employees who purchase their own Coronavirus swab tests, and are reimbursed by their employer, will not attract income tax and NICs liabilities in the current tax year. A Coronavirus swab test means a test which detects … Continue reading Employer reimbursed Coronavirus swab tests – Income tax exemption and National Insurance disregard

Register births for child benefit

HMRC is now urging Child Benefit claimants to register their child’s birth if they haven't done so, in order to verify their claim. Parents in Northern Ireland will also need to send in the Birth Certificate. Details for Child benefit, how to register a birth and finding a registrar can be found at: Child benefit … Continue reading Register births for child benefit

819,000 fewer on payroll since February 2020

The Office for National Statistics (ONS) and HM Revenue and Customs have released the joint Earnings and employment from Pay As You Earn Real Time Information, UK: December 2020 There were 28.2 million employees on payroll in November 2020 The number of payrolled employees in the UK in October 2020 fell by 2.6%, compared with … Continue reading 819,000 fewer on payroll since February 2020

Extended Coronavirus Job Retention Scheme – guidance updates 10th December 2020

HMRC has applied further updates to the guidance for the extended CJRS on Thursday 10th December 2020: Coronavirus Job Retention Scheme CollectionCoronavirus Job Retention Scheme Check if you can use the scheme Changes to the 'Employer claim information that HMRC will make public' section with information that from February HMRC will publish information about employers … Continue reading Extended Coronavirus Job Retention Scheme – guidance updates 10th December 2020

Missed the Monday 14th December 2020 claim deadline!

Monday 14th December 2020 was the last day to make a claim through the Job Retention Scheme for periods in November. So if you have furloughed staff during the month of November, even if you won’t pay amounts until later, you needed to prepare and calculate your grant claim amounts for the latest 14th December … Continue reading Missed the Monday 14th December 2020 claim deadline!

Adults to gain new skills on 400 free courses

Tens of thousands of adults to benefit from hundreds of free courses next year, including engineering, health, construction and accountancy. Tens of thousands of adults will be able to benefit from almost 400 free courses next year, in the first major development in the Lifetime Skills Guarantee announced by the Prime Minister in September. The … Continue reading Adults to gain new skills on 400 free courses

December 2020 HMRC Employer Bulletin

Dear @PAYadvice, Our Employer Bulletin (December 2020, Issue 87) includes a host of useful information including the extension to the Coronavirus Job Retention Scheme, VAT deferral and VAT reverse charge measures for the construction industry, Virtual Christmas Parties and Brexit transition updates. There’s also a timely reminder about how to report PAYE Real Time Information … Continue reading December 2020 HMRC Employer Bulletin

Action required – submit your November Coronavirus Job Retention Scheme claims

Dear @PAYadvice, I’m writing to remind you about the upcoming deadline for making your Coronavirus Job Retention Scheme (CJRS) claims for November, and actions you or your clients might need to take. You must submit any November claims, no later than 14‌‌ ‌‌‌December. CJRS: what you or your clients can claim and when The UK … Continue reading Action required – submit your November Coronavirus Job Retention Scheme claims

JETS fuels support for more than 40,000 jobseekers

More than 800 jobseekers per day have been referred to the government’s new £238 million JETS – Job Entry Targeted Support – programme since it launched at the start of October 2020. In its first fifty days, Work Coaches across the country have acted quickly to deliver the additional support, signposting tens of thousands of … Continue reading JETS fuels support for more than 40,000 jobseekers

Crackdown on unfair employment clauses in a boost for low paid workers – consultation

Proposed crackdown on restrictive employment contracts will ensure up to 1.8 million low paid workers across the UK can pick up extra work if they want toother reforms will remove unfair barriers that prevent workers in technology, legal and other sectors from starting up or joining competing businessesplans will give workers more freedom over where … Continue reading Crackdown on unfair employment clauses in a boost for low paid workers – consultation

Furlough naming – more details released

HMRC have updated guidance (30th November) on naming of employers who have used the Coronavirus Job Retention Scheme for periods starting from 1st December 2020. ‘Section on employer claim information updated with details of upcoming claim band ranges’. Employer claim information that HMRC will make public As part of HMRC’s commitment to transparency and to … Continue reading Furlough naming – more details released

Child Trust Fund court fees waived for parents

Parents or guardians of children who lack mental capacity can ask for court fees to be waived when seeking access to a Child Trust Fund, the government has announced 1st December, 2020. vast majority of affected families will not have to pay feesworking group to look at further reducing administrative burden on parents of children … Continue reading Child Trust Fund court fees waived for parents

Extended Coronavirus Job Retention Scheme – guidance updates 1st December 2020

HMRC has applied further updates to the guidance for the extended CJRS on Tuesday 1st December 2020: Call out box of key messages at top of all pages changed to say: The Coronavirus Job Retention Scheme has been extended until 31st March 2021. Claims for furlough days in November 2020 must be submitted by 14th … Continue reading Extended Coronavirus Job Retention Scheme – guidance updates 1st December 2020

Failed tax avoidance – the IT contractors story

The IT contractor - Duncan’s story Duncan is a 55-year-old IT project manager. He’s married with two children and lives in London. When he started working as a contractor, he chose to use an umbrella company to help him manage his payroll admin. He found one through a comparison website. Duncan didn’t ask enough questions … Continue reading Failed tax avoidance – the IT contractors story

The nurses story – failed tax avoidance

HMRC have shared stories of contractors who have been caught up in tax avoidance schemes. They were promised higher take-home pay, lower tax bills and less paperwork. Instead, it cost them time, money and stress. Tanya is a single parent. She works as a critical care nurse at her local hospital. She found her job … Continue reading The nurses story – failed tax avoidance