HM Revenue and Customs (HMRC) have provided the final versions of P11D and P11D Working Sheets for tax year 2020 to 2021. They are only to be used by software developers to assist with development of their payroll software. PAYE draft forms: P11D and P11D Working Sheets (2020 to 2021) Documents P11D Expenses and benefits … Continue reading Draft P11D and working sheets published for software developers
Effective 11th May 2020 Scottish tax payers will see adjustments in their next payments from 11th May 2020 as the Scottish budget changes come into live operation. The changes are backdated for cumulative tax calculations to the start of the tax year 6th April 2020. Scottish Parliament at Holyrood, Edinburgh Scottish tax payers will see … Continue reading Scottish Tax Changes come into force from 11th May 2020
For 2020-2021 tax years onwards, you can only claim EA if your total (secondary) Class 1 National Insurance contributions (NICs) liability is below £100,000 in the tax year before the year of claim Business Sector choice errors HM Revenue and Customs checks suggest that a number of employers (or their agents/payroll administrators), may be incorrectly … Continue reading Employment Allowance – business sector choice errors
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
The following are National Insurance calculation resources for 2020/2021 tax year. Rates and threshold CA38(2020) PAYadvice.UK 17/4/2020
The government have provided further details on the #COVID19 SSP. The requirement for a 4 day period of incapacity for Work (PIW) remains as required, however, no waiting days are to be used. This is effective from Friday 13th March 2020 and currently indicated to remain in place (subject to change) until 12th November 2020. … Continue reading Some more #COVID19 Statutory Sick Pay guidance #coronavirus
It’s National Minimum Wage (#NMW) and National Living Wage rise day. For pay period which commence from 1st April 2020, the new rates apply for relevant worked hours. Employers need to consider their compliance approach especially for lower paid workers who are part of salary sacrifice schemes. With the 6.2% rise, many people in work … Continue reading National MinimumWage rise day arrives (1st April 2020)
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/876522/PAYERout_v18.0.pdf HM Revenue and Customs have published the SPECIFICATION FOR PAYE TAX TABLE ROUTINES version 18.0 and distributed to software developers Monday 30th March 2020. This specification defines the legal basis for the calculation of Income Tax in the UK. Tax calculation for England, Northern Ireland and Wales remain unchanged. The Scottish Parliament budget process … Continue reading At last! The updated tax calculation specification #Budget2020
https://globalpayrollassociation.com/products/uniting-payroll Friday 27th March saw the ‘three payroll musketeers’ unite payroll with a free virtual symposia UK update. Simon Parsons joined Kate Upcraft and Ian Holloway to discuss government change in relation to the new tax year and emergency measures dealing with #COVID19 #coronavirus. The host was the Melanie Pizzey of GPA. All four are … Continue reading GPA – uniting payroll #COVID19 #coronavirus #Budget2020
What is the tax position? HMRC have issued further clarification on which expenses are taxable if your employee works from home due to #coronavirus #COVID19 https://www.gov.uk/guidance/check-which-expenses-are-taxable-if-your-employee-works-from-home-due-to-coronavirus-covid-19 For example - Those working from home are entitled to the reliefs relating to home-working allowance of £4 per week (£18 per month) rising to £6 per week (£26 … Continue reading HMRC issue guidance on expenses and benefits related to #Homeworkers #COVID19 #coronavirus
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
Steve Barclay MP (Parliament tv) 17th March 2020 - Steve Barclay, as part of the budget 2020 debate, announces a delay to the introduction of off-payroll working (deemed employment / IR35) originally planned to be introduced to some private sector business from April 2020, to a 12 month deferred implementation date of April 2021 as … Continue reading Off-Payroll working measures delayed until April 2021 – #COVID19 #coronavirus
‘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!
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
Holiday pay rights - It comes with the job According to research by Unpaid Britain, workers are missing out on £1.8 billion a year in unpaid holiday leave. That’s 1.8 million employees are being denied their employment rights to holiday pay. Monday 2nd March 2020 saw the launch of a new government campaign to remind … Continue reading Do you know your holiday pay rights?
Parents who suffer the devastating loss of a child entitled to 2 weeks statutory leave. Working parents who lose a child under the age of 18 will get 2 weeks’ statutory leave the new legal right to 2 weeks’ paid bereavement leave, to be called ‘Jack’s Law’, is a world first parental bereavement leave is … Continue reading New Legal right to paid parental bereavement pay ‘Jack’s Law’ to go ahead.
The Scottish Government’s budget will be published on 6 February 2020, Finance Secretary Derek Mackay has announced. It comes after the UK Government confirmed their budget would be delayed until 11 March 2020. Mr Mackay said: “The UK Government’s approach to the Scottish Budget has been completely unacceptable and has shown a disregard for devolution … Continue reading Scottish budget set for Thursday 6th February 2020
The proposed daily equivalent rates for SSP have been made available. These are proposed to be effective from Monday 6th April 2020.
The proposed statutory payments rates for employees with earnings at or above a proposed weekly Lower Earnings Limit / Lower Threshold of £120 from April 2020 are: Statutory Sick Pay (SSP): £95.85 per week from Monday 6th April 2020 The following parental pay changes relate to weeks commencing from Sunday 5th April 2020. Statutory Maternity … Continue reading Proposed Statutory Payment Rates for April 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
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
HM Revenue Employment Allowance Reform Policy team confirmed (Thursday 3rd October 2019) that employers will no longer be required to calculate and report the amount of de minimis State aid value on the RTI EPS. Employers who wish to claim Employment Allowance from 6th April 2020 will need to report their business sector (RTI data … Continue reading Employment Allowance Reform – requirement for reporting de minimis State aid in Euro removed
The Department for Education (DfE) have confirmed the annual updates to the Thresholds of Income Contingent Student Loans. From 6 April 2020, the repayment threshold for pre-2012 (Plan 1) loans will rise to £19,390. The repayment threshold for post-2012 (plan 2) loans will rise to £26,575 from 6 April 2020 to 5 April 2021. The … Continue reading Student And Postgraduate Loan Thresholds Confirmed for April 2020