Category: National Insurance

New format NINOs? No they’re Temporary Reference Numbers (TRNs) – do not use!

There have been a number of questions circulating about new format National Insurance Numbers identified as such on letters to individuals from HM Revenue and Customs and also on P2 tax code notifications to individuals. These ‘new numbers’ are in a different format to the traditional NINO. Have NINOs changed? Should employers use these new … Continue reading New format NINOs? No they’re Temporary Reference Numbers (TRNs) – do not use! →

Gender Recognition Certificate fee reduced

The Government has reduced the Gender Recognition Certificate fee to £5. The Government has delivered on its pledge to reduce the fee of applying for a Gender Recognition Certificate (GRC). In response to the consultation on the Gender Recognition Act, Minister for Women and Equalities, Liz Truss, committed to modernising the process of applying for … Continue reading Gender Recognition Certificate fee reduced →

HMRC April 2021 Employer Bulletin

HMRC have issued the April 2021 Employer Bulletin, again, packed full with information. In this month’s edition of the Employer Bulletin there are updates and information on COVID-19 updates and information:Coronavirus Job Retention SchemeVAT deferral new payment schemeNew one-off payment of £500 to support working households receiving tax creditsExtension of filing dates for internationally mobile … Continue reading HMRC April 2021 Employer Bulletin →

CA38/CA40/CA41/CA42/CA44 National Insurance contributions tables issued (at last)

For the second year running the HMRC have issued the National Insurance contributions tables very late on 6th April. Traditionally issued in late February, the 2021/2022 tables have been issued on Tuesday 6th April 2021. The fact that pay calculations have been required in preparation for payments in the new tax year seems to no … Continue reading CA38/CA40/CA41/CA42/CA44 National Insurance contributions tables issued (at last) →

IR35/Off-Payroll Working – Umbrellas and Agencies

This article is based on HMRC information ESM2390. What is an ‘umbrella company‘? There is no statutory definition of an ‘umbrella company’. It is generally accepted that an umbrella company is a company that employs temporary workers who work for different end clients’. Typically they enter into a contract with a recruitment agency who will … Continue reading IR35/Off-Payroll Working – Umbrellas and Agencies →

IR35/Off-Payroll Working – Operating Payroll

This article is based on parts of the HMRC Employment Status Manual ESM10019. How does a Deemed Employer operate PAYE? When the deemed employer operates PAYE, it should do this through payroll. They can add them to an existing payroll or set up a new payroll or PAYE scheme. New Deemed Employee - anything different? … Continue reading IR35/Off-Payroll Working – Operating Payroll →

Employ Veterans

From 6th April 2021, employers who hire former members of the UK regular armed forces will be able to claim a National Insurance holiday for 12 months starting from the first day of the veteran's first civilian employment. This zero-rate can be applied up to the veterans upper secondary threshold. This relief is available from … Continue reading Employ Veterans →

Off-Payroll working (IR35) – Questions about compliance

Ahead of changes to the off-payroll working rules #IR35 on 6th April 2021, the HMRC answer some top questions about compliance that they’ve heard in their webinars and other support they have provided Are changes to the off-payroll working rules happening on 6 April 2021?Does the light touch approach to penalties mean customers don’t need … Continue reading Off-Payroll working (IR35) – Questions about compliance →

Isle of Man National Insurance for 2021-2022 confirmed – UAP withdrawn

On Wednesday 10th March the Isle of Man government published the confirmed National Insurance threshold value for the 2021/2022 tax year. Although most values have remained the same, the Upper Accrual Point (UAP) is withdrawn. This does cause slightly different calculation results and rounding in comparison with 2020/2021. 2021-22 Software developers guide Isle of Man … Continue reading Isle of Man National Insurance for 2021-2022 confirmed – UAP withdrawn →

Payroll 2021/22: Employment Allowance and Apprenticeship Levy

HMRC Shipley by PSP HM Revenue and Customs Software Developers Support Team (SDST) have provided the following confirmation for the new tax year and that there is no change. It has been confirmed that for 2021-22 the Employment Allowance and the Apprenticeship Levy will remain at the same levels they were for 2020-21. Employment Allowance: … Continue reading Payroll 2021/22: Employment Allowance and Apprenticeship Levy →

Budget 2021 – Income tax and National Insurance contributions

The government will maintain the income tax Personal Allowance and higher rate threshold and National Insurance contributions Upper Earnings Limit and Upper Profits Limit at their 2021-2022 levels up to and including 2025-2026. HM Treasury have issued the following in relation to announcements at budget 2021: As announced at Spending Review 2020, the government will … Continue reading Budget 2021 – Income tax and National Insurance contributions →

HMRC issue the 2021/2022 further guidance

The HMRC have update their employer guidance CWG2, CWG5 and also the guide to gross-up where employer pay the tax and NICs on expenses and benefits. CWG2 further guide to PAYE and National Insurance HMRC have issued the updated CWG2 for the 2021/2022 tax year (for the tax year which commences from 6th April 2021). … Continue reading HMRC issue the 2021/2022 further guidance →

Isle of Man Budget 2021

No payroll surprises (yet) for the payroll changes from the Isle of Man Budget 2021 held Tuesday 16th February 2022. Income tax remains unchanged In the Isle of Man budget 2021 information, it is stated that the LEL (marked with * below) ‘that these figures will not be announced until after the UK Budget and … Continue reading Isle of Man Budget 2021 →

National Insurance contributions relief for employers who hire veterans

At Spring Budget 2020, the Chancellor announced the introduction of a National Insurance holiday for employers that hire former members of the UK regular armed forces. The holiday will exempt employers from any National Insurance contributions liability on a veteran’s salary up to the Upper Secondary Threshold (UST) in their first year of civilian employment. … Continue reading National Insurance contributions relief for employers who hire veterans →

February 2021 Employer Bulletin published

HMRC have published their new format web delivered Employer Bulletin. It’s absolutely packed with important information which will aid payroll professionals in obtaining vital information and guidance. There are a plethora of important topics: Coronavirus Job Retention SchemeVAT deferral new payment scheme – opt-in from the end of February 2021VAT reverse charge for construction and … Continue reading February 2021 Employer Bulletin published →

6th April 2021 tax changes confirmed

Following the Scottish budget, the HMRC have confirmed the tax allowances, rates and thresholds for 2021/2022 across the UK, these are effective from 6th April 2021. The tables below provide both the current and the new tax year values. Personal Allowance England and Northern Ireland Tax calculations for 6th April include changes announced by the … Continue reading 6th April 2021 tax changes confirmed →

Employer Bulletin – UK transition edition

Dear @PAYadvice, Following the UK’s exit from Europe on 31 December 2020, we have published a UK Transition edition of the Employer Bulletin. This contains a roundup of information and support previously published to continue supporting you. In this edition, you can find out about the new rules for: trading with Europebusiness travellerssocial security coordination. … Continue reading Employer Bulletin – UK transition edition →

Zero rate NI for Veterans – draft legislation

At Spring Budget last year, the government announced its intention to introduce a National Insurance Contributions (NICs) holiday for employers who hire former members of the UK regular armed forces.  The relief will exempt employers for any NICs liability on veteran’s salary up to the Upper Secondary Threshold in their first year of civilian employment. … Continue reading Zero rate NI for Veterans – draft legislation →

Legislation Update 2021 for payroll

Featured

PAYadvice.UK have issued its 21.4 version of the PAYadvice Series Legislation Update 2021. This is a compilation of the confirmed changes due for 2021 for the UK, Channel Islands and the Isle of Man. The original version was made available on 7th January 2021. We believe that PAYadvice was the first organisation in the UK … Continue reading Legislation Update 2021 for payroll →

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 →

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 →

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 →

Extension of the Coronavirus Job Retention Scheme and the Self-Employment Income Support Scheme

Dear @PAYadvice, In light of the increased restrictions needed to curb the coronavirus pandemic, the UK government is introducing additional economic measures to support you and your clients. Coronavirus Job Retention Scheme  The Coronavirus Job Retention Scheme (CJRS), which was due to end on 31 October, will now be extended, with the UK government paying … Continue reading Extension of the Coronavirus Job Retention Scheme and the Self-Employment Income Support Scheme →

Job Support Scheme – Guidance Published (30th October 2020)

*Update* On Thursday 5th November 2030, the UK government confirmed a further extension of CJRS until the end of March 2021 the JSS introduction is delayed. HMRC have published more details and guidance to assist employers in operating and claiming support through the new Job Support Scheme which commences from Sunday 1st November 2020. Check … Continue reading Job Support Scheme – Guidance Published (30th October 2020) →

Self Employment Income Support Grant – claim from 14th December 2020

The Self-Employment Income Support Scheme Grant Extension provides support in the form of two grants, each for three month periods covering November 2020 to January 2021 and February 2021 to April 2021. The Government will provide a taxable grant covering 40% of average monthly trading profits, paid out in a single instalment covering 3 months’ … Continue reading Self Employment Income Support Grant – claim from 14th December 2020 →

Hire ex-military talent – The career transition partnership

Defence minister Johnny Mercer: “Every year, 14,000 people leave the military - people with incredible skills that can enhance your workplace.” He is encouraging employers to sign up to the Career Transition Partnership to access ex-Armed Forces talent. Career Transition Partnership Opinion The government are encouraging employers to look seriously at the pool of talent … Continue reading Hire ex-military talent – The career transition partnership →

Prove your right to work in the UK

You do not need a National Insurance number to work in the United Kingdom. The government provide an online service which verifies and confirms details of: the types of job you’re allowed to dohow long you can work in the UK for You’ll need one of the following: your biometric residence permit numberyour biometric residence … Continue reading Prove your right to work in the UK →

Off-payroll workers – have you prepared?

With less than 6 months until new law comes into effect, has your business put in place plans to implement changes to the process of: Engagement of contractorsStatus classificationNotification of status to contractors and their intermediariesDispute processsRecord keepingPayroll and finance readinessOrganising appropriate PAYE schemeIdentifying amounts subject to tax and National InsuranceBudgeting for the employers National … Continue reading Off-payroll workers – have you prepared? →

No National Insurance number? So what!

National Insurance Number delays The October 2020 HMRC bulletin provides additional guidance on National Insurance requirements.Due to COVID-19, the Department for Work & Pensions (DWP) is only able to offer a National Insurance Number (NINO) service to a limited number of applicants. In order to allocate a NINO for employment purposes DWP has a legal … Continue reading No National Insurance number? So what! →

Job Support Scheme expanded to firms required to close due to Covid Restrictions

The government’s Job Support Scheme (JSS) is expanded to protect jobs and support businesses required to close their doors as a result of coronavirus restrictions. Job Support Scheme will be expanded to support businesses across the UK required to close their premises due to coronavirus restrictionsgovernment will pay two thirds of employees’ salaries to protect … Continue reading Job Support Scheme expanded to firms required to close due to Covid Restrictions →

Grandparent, or other family member, who care for a child under 12? Specified adult childcare NI credits

MM&R by PSP(c)2020 You may be entitled to receive NI credits if you are a grandparent, or other family member, who cares for a child under 12, usually whilst their parent (or main carer) is working. These credits have been available since April 2011. If you qualify you must make an application to receive the … Continue reading Grandparent, or other family member, who care for a child under 12? Specified adult childcare NI credits →

Consultation launched: National Insurance Contributions holiday for employers that hire former members of the armed forces

The government is seeking views from employers of veterans, software providers and accountants about a National Insurance Contributions (NICs) holiday for employers who hire former members of the UK regular armed forces. The measure, announced at Budget 2020 in March, will exempt employers for any NICs liability on veteran’s salary up to the Upper Secondary … Continue reading Consultation launched: National Insurance Contributions holiday for employers that hire former members of the armed forces →

Need your National Insurance Number? Get the free HMRC App.

Quickly find and print your National Insurance number using the HMRC App. What you can do with the HMRC app See it your tax code your National Insurance numberan estimate of the tax you need to payyour income and benefitshow much you will receive in tax credits and when they will be paidyour Unique Taxpayer … Continue reading Need your National Insurance Number? Get the free HMRC App. →

HMRC clarify National Insurance Number requirement for Coronavirus Job Retention Scheme Grant Claim

HMRC have issued the following with regards to Furlough employees where the employer has not been provided with a NINO. We understand that there have been some questions regarding National Insurance numbers and the Job Retention Scheme and therefore hope the below is a helpful update. When making a claim to the Job Retention Scheme, … Continue reading HMRC clarify National Insurance Number requirement for Coronavirus Job Retention Scheme Grant Claim →

CWG2 corrected – 21st April 2020

https://www.gov.uk/government/publications/cwg2-further-guide-to-paye-and-national-insurance-contributions/2020-to-2021employer-further-guide-to-paye-and-national-insurance-contributions The HMRC have updated the CWG2 Employer guide to reflects some errors corrections. One area was section 3.1.5 Whilst the opening section was correct (and not changed): The example 3 retained last years guidance and indicated using a prior tax year rate for starter earning from the prior tax year but paid in the … Continue reading CWG2 corrected – 21st April 2020 →

Furlough : benefits and salary sacrifice #COVID19 #coronavirus

Letter box, HM Treasury, by P Simon Parsons With employees being placed into furlough, there is much confusion and misunderstanding in relation to salary sacrifice arrangements. Benefits in kind The provision of benefits provided by employers have different tax and National Insurance implications than an employee receiving cash remuneration. For example: Child care vouchers given … Continue reading Furlough : benefits and salary sacrifice #COVID19 #coronavirus →

Claim It – how much? – #coronavirus Job Retention Scheme

How much CJRS grant can an employer claim? Employers can claim: 80% of your employees’ wages (even for employee’s on National Minimum Wage) - up to a maximum of £2,500. Do not claim for the worker’s previous salary.minimum automatic enrolment employer pension contributions on the subsidised wage Employers can ‘top up ...salary, but... do not … Continue reading Claim It – how much? – #coronavirus Job Retention Scheme →

Homeworkers tax and NI free allowance increase from 6th April 2020

Working from home? Where an employer chooses to pay an allowance for their workers who are working at home under a home working arrangement, the allowable amount which is tax and NI free (with no requirement for expense recording) is being raised from the current flat rate £4 per week (£18 per month) to a … Continue reading Homeworkers tax and NI free allowance increase from 6th April 2020 →

National Insurance Holiday for employers of veterans from April 2021

One of the new measures announced in the budget was the introduction for a National Insurance holiday for employers that hire former members of the UK regular armed forces. Budget 2020 The NI holiday would exempt employers NIC liability on the veteran’s salary up to the Upper Earnings Limit (UEL) in their first year of … Continue reading National Insurance Holiday for employers of veterans from April 2021 →

Budget 2020 – the payroll highlights!

‘This budget gets it done’ Base rate cut Bank of England cuts base rate to 0.25% #coronavirus #COVID19 SSP measures For Coronavirus, day 1 right to SSP. For employers with under 250 employees the amount is fully recoverable for up to 14 days leave per employe. Employers to be offered time to pay in relation … Continue reading Budget 2020 – the payroll highlights! →

£4,000 Employment Allowance change to be announced in the Budget

The Chancellor of the Exchequer is predicted to announce further changes to the Employment Allowance. A cut in the ‘job tax’. Raising the employment allowance from £3,000 to £4,000, giving millions of businesses an immediate boost. In a government policy to encourage job creation, the employment allowance allows qualifying employers to offset currently up to … Continue reading £4,000 Employment Allowance change to be announced in the Budget →

Government Budget set for 11th March 2020

Sajid Javid confirms next Budget will be held on Wednesday 11 March 2020. The Chancellor of the Exchequer, Sajid Javid, has today launched the beginning of the Budget process and announced that it will take place on Wednesday 11 March 2020. During a visit to the new £350 million Trafford Park tram line project in … Continue reading Government Budget set for 11th March 2020 →

December 2019 Queens Speech – reaffirms NIC and NLW proposals

The Queens gracious speech on 19th December 2019 set out the new government proposals. Some are relevant to payroll and employment. Exiting the European Union 'My Government’s priority is to deliver the United Kingdom’s departure from the European Union on 31 January. My Ministers will bring forward legislation to ensure the United Kingdom’s exit on … Continue reading December 2019 Queens Speech – reaffirms NIC and NLW proposals →

April 2020 changes for Termination Payments – Real time Class 1A

Originally planned for introduction in April 2018, due to delays in obtaining parliamentary approval, the changes have been deferred until April 2020. New rules mean that the scope of termination payments exemptions align the rules so employers National Insurance Contributions (NICs @13.8%) are due on those payments over £30,000 which are already subject to Income … Continue reading April 2020 changes for Termination Payments – Real time Class 1A →