Off-payroll (IR35) contracted out services

Off-payroll working rules (commonly known as IR35) changed on 6th April 2021. In efforts to overcome IR35 responsibilities some arrangements are being promoted that indicate some client organisations would no longer be responsible for considering the off payroll working rules. These may be labelled as ‘contracted out services’ or ‘statement of works’. It is important to fully consider any arrangements in response to changes to … Continue reading Off-payroll (IR35) contracted out services

Absurd excuses for not paying National Minimum Wage published

By law, workers must be paid at least the minimum wage for their age - the following are 10 outrageous excuses employers have used to try and flout the rules. While the majority of employers pay their employees at least the National Minimum Wage, HM Revenue and Customs (HMRC) has released some of the absurd … Continue reading Absurd excuses for not paying National Minimum Wage published

Minimum wage law breaker Employers ‘named and shamed’

Government names and shames 191 employers who have underpaid workers, including major household namesnamed firms have been fined for owing £2.1 million to over 34,000 workersBusiness Minister Paul Scully: “Employers that short-change workers won’t get off lightly” Thursday 5th August 2021 - 191 businesses are being named for breaking national minimum wage law. Following investigations … Continue reading Minimum wage law breaker Employers ‘named and shamed’

NICs Holiday for Employers of Veterans (NHEV)

HM Revenue & Customs Software Developers Support Team (SDST) has issued briefing notes for developers in relation to changes for National Insurance Contributions Holiday for Employers of Veterans abbreviated as NHEV. The relief applies from April 2021, however HMRC were unable to ready their systems in time for real time operations and employers will be … Continue reading NICs Holiday for Employers of Veterans (NHEV)

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

Happy Birthday PAYadvice

Wishing PAYadvice Ltd a very happy 2nd Birthday. May there be many more. On 9th April 2019 PAYadvice Ltd was registered with companies house and there lays the birth of PAYadvice.UK. What was originally a WordPress side-hobby has become a regular speed blog for all things Payroll and beyond. 2020 has been a disrupted year … Continue reading Happy Birthday PAYadvice

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)

Why does the new tax year start on 6th April?

Why does the tax year start on 6th April each year? Well, it used to be New Year’s Day! In 1752 the British calendar aligned with the rest of Europe (moving from the Julian calendar to the Gregorian calendar) and moved New Year’s Day to 1 January. Until then New Year’s Day was 25th March … Continue reading Why does the new tax year start on 6th April?

Millions get pay rise as National Living Wage and National Minimum Wage increase comes into effect

Around 2 million of the UK’s lowest-paid workers will benefit from an increase in National Living Wage and National Minimum WageNational Living Wage will rise 2.2% to £8.91, and be given to 23 and 24-year-olds for the first timeBusiness Secretary Kwasi Kwarteng urges workers to check their pay packet to ensure they get what they … Continue reading Millions get pay rise as National Living Wage and National Minimum Wage increase comes into effect

1st April – National Living Wage extended to younger workers

The age threshold for the National Living Wage changes from 25 to 23 as the rate increases on 1st April. The National Living Wage (NLW) will increase on Thursday 1st April 2021 to £8.91, giving a real-terms pay rise to millions of workers. At the same time, the age threshold for the rate will move … Continue reading 1st April – National Living Wage extended to younger workers

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

Substitute P60 form approval process changes

HMRC has announced the following easement for those still awaiting approval for substitute P60 forms from HMRC: “A decision has been made by HM Revenue & Customs (HMRC) to introduce an easement of the normal approvals process for substitute P60 forms. This change is due to the impact that both EU-Exit and the current Covid-19 … Continue reading Substitute P60 form approval process changes

Tax year 2021/2022 tax tables published

For those who like to use the tax tables for the occasional manual calculation or problem checking and resolution, the HMRC have published new 2021/2022 tax tables applicable for payments commencing from 6th April 2021. These provide the monthly and weekly calculation tables for the whole of the United Kingdom including the variations for Scotland … Continue reading Tax year 2021/2022 tax tables published

Child Care Vouchers – 2021/2022 Basic Earnings Assessment Calculator

Employer who provide childcare vouchers to employees are required to undertake an annual Basic Earnings Assessment (BEA) prior to the start of the tax year to define the tax and NIC free amount of ChildCare Vouchers (CCV). The rates and limits available are set by the Westminster parliament and apply across the United Kingdom. There … Continue reading Child Care Vouchers – 2021/2022 Basic Earnings Assessment Calculator

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

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 2021/2022: Company car appropriate percentages

The HMRC Software Developers Support Team have provided the following confirmations. Company car appropriate percentages for 2021-22 have been confirmed as below. 1. Cars registered on or after 1 January 1998 with an approved CO2 emissions figure: Please refer to the ‘Company Car Tax’ section at: Annex A rates and allowances 2. Cars registered on … Continue reading Payroll 2021/2022: Company car appropriate percentages

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

Payroll Question Time: The Budget 2021 – Friday 5th March | 2:00pm – 3:30pm

Join the Payroll and HR community at the SD Worx monthly, online interactive discussion. With one of the most eagerly anticipated Budgets set to be published on 3rd March 2021, our regular expert panel will be discussing the choices and changes set out by Chancellor Rishi Sunak. We’ll be interpreting how they impact businesses in … Continue reading Payroll Question Time: The Budget 2021 – Friday 5th March | 2:00pm – 3:30pm

HMRC Talking Points

Dear @PAYadvice, HMRC's regular Talking Points provide information, guidance and tips to help you to understand tax issues.  We have more Talking Points webinars coming up. There are a limited number of spaces, so save your place now. Penalties for enablers of defeated tax avoidance: This webinar gives an overview of the penalties for enablers of … Continue reading HMRC Talking Points

2021/2022 New Starter Checklists available

GOV.UK have published the new adjusted HMRC ‘New Starter Checklist’. Some years ago these were referenced as P46. These have been adjusted to combine the student loan and postgraduate loans information requests into two questions 9 and 10, and incorporate the new Scottish Student Loan Plan 4 which commences collection from pay from 6th April … Continue reading 2021/2022 New Starter Checklists available

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

Off-Payroll working rules – HMRC Talking Points

Dear @PAYadvice, HMRC's regular Talking Points provide information, guidance and tips to help you to understand tax issues.  We have more Talking Points webinars coming up. There are a limited number of spaces, so save your place now. Off-payroll working rules from April 2021: Status Determinations and Disagreements: This webinar explains what Status Determination Statements (SDS) are, … Continue reading Off-Payroll working rules – HMRC Talking Points

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

HMRC annual issue of P9 tax codes commences

HMRC have confirmed that electronic outputs of P9 tax codes to be applied for contractual payments dates from 6th April 2021, will be issued to employers or their electronic exchange agents who have their PAYE scheme set to ‘Yes’ for P9 bulk issue starting now and through until 19th February 2021. For employers where the … Continue reading HMRC annual issue of P9 tax codes commences

The Van Benefit and Car and Van Fuel Benefit Order 2021

HM Treasury have issued the following statement to enable payroll software and employers to prepare for the new tax year commencing 6th April 2021. Statement 4th February 2021 Kemi Badenoch MP Exchequer Secretary (HM Treasury): The van benefit charge and fuel benefit charges for cars and vans will be uprated by the Consumer Price Index … Continue reading The Van Benefit and Car and Van Fuel Benefit Order 2021

P9X Tax Codes to use from 6th April 2021

HMRC have published (Tuesday 2nd February 2021) form P9X to be operated by employers from 6th April 2021. Employers use the P9X to find out which PAYE tax codes to change, how to change them and which codes to carry forward ready for a new tax year on 6th April. P9X(2021) Information on the payroll … Continue reading P9X Tax Codes to use from 6th April 2021

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

Scottish Income Tax Changes 2021

Income tax is the responsibility of the UK Government and is collected and managed by HMRC. However, the Scotland Act 2012 gave the Scottish Parliament the power to set a different rate of income tax in Scotland, known as the Scottish Rate of Income Tax (SRIT). This took effect from 6 April 2016. Scotland Act … Continue reading Scottish Income Tax Changes 2021

Pensions: The Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2021

The Department for Works and Pension (DWP) have laid the draft regulations for a Pension Automatic Enrolment (AE) thresholds operational for pay reference periods commencing from 6th April 2021. The draft regulation can be found at:- The Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2021 And PAYadvice.UK had predicted, there is no change … Continue reading Pensions: The Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2021

HMRC: Payroll 2021/22: Statutory Payments CORRECTION

There were a number of errors in the statutory payments rates which were circulated by HMRC SDSTeam on 22nd December 2020. A new Version 2 has been issued and replaces the previous version. The corrections are to the unrounded daily rates for 7 qualifying days (corrected to 13.7642) and 3 qualifying days (32.1166). Also, a … Continue reading HMRC: Payroll 2021/22: Statutory Payments CORRECTION

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

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

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

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

Minimum pay changes confirmed for April 2021

The Government has announced the National Living Wage (NLW) and National Minimum Wage (NMW) rates which will come into force from April 2021. It has accepted in full recommendations made by the Low Pay Commission at the end of October. The National Living Wage will increase by 2.2 per cent from £8.72 to £8.91, and … Continue reading Minimum pay changes confirmed for April 2021

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

Payroll Question Time? – 6th November 2020

SD Worx are hosting its next edition of payroll question time on Friday 6th November 2020 at 2pm with its expert panel of Payroll and Employment law specialists. Have question and want to know more. Don’t know where to turn and are seeking guidance: Job Support SchemeJob Retention BonusCOVID-19 support measuresEmployment law latestLooking to the … Continue reading Payroll Question Time? – 6th November 2020

October 2020 HMRC Employer Bulletin

Dear @PAYadvice, [The] Employer Bulletin (October 2020, Issue 86) includes all of the latest COVID-19 updates to help [employers] continue to meet [their] payroll obligations to HMRC, including recent government announcements of additional support for businesses and employees. We’ve included the latest update on both the Coronavirus Job Retention Scheme and the Job Retention Bonus, … Continue reading October 2020 HMRC Employer Bulletin

Income Tax changes – Van benefit charge from 6 April 2021

From 6th April 2021, the cash equivalent of the van benefit charge for zero emission vans is nil. The government announced its intention to introduce this policy change at Budget 2020 as part of ‘Road to Zero’ targets. It will apply only to vans which cannot emit any CO2 when being driven.. This change supports … Continue reading Income Tax changes – Van benefit charge from 6 April 2021

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

Off-Payroll Working – government response

In a response to the House of Lords sub committee, the U.K. government are continuing with plans to progress the introduction of off-payroll working rules in the private sector which, as a result of #COVID19, was delayed from April 2020 until April 2021. They claim that the “off-payroll working rules are designed to ensure that … Continue reading Off-Payroll Working – government response