Articles and information in relation to UK Payroll for business, employers and employees.
Pensioners and their loved ones are being urged to take-up Pension Credit, as a new campaign is launched to help those of pension age with the cost of living. New statistics show many pensioners could be missing out on Pension Credit, a vital financial boost that can be worth over £3,300 a year. Starting April … Continue reading Eligible pensioners urged to apply for Pension Credit
From Wednesday 6th April 2022, the Health and Social Care Levy will begin to raise billions to tackle the Covid backlogs and reform adult social care From Wednesday 6th April 2022, the Health and Social Care Levy comes into effect and begins to raise billions to help tackle the Covid backlogs and reform the adult … Continue reading Health and Social Care Levy to raise billions for NHS and social care
Do you operate a banded pension scheme using qualifying earning? Have you checked that the start and end points meet the requirements in operation for pay reference periods commencing 6th April 2022. Since the introduction of pension AE the qualifying earnings Lower Threshold has matched the National Insurance Lower Earnings Limit (LEL). Often pension schemes would … Continue reading Check your Auto Enrolment Pension scheme
PAYadvice endeavours to keep you as up to date as possible with the latest and developing changes impacting payroll and HR. The latest version 22.9 includes the announcements made at the spring statement 2022 which took place on 23rd March 2022.: The increase to primary threshold from 6th July 2022The increase to the Employment Allowance … Continue reading April 2022 – New Tax Year resources
The government have confirmed that the Pension Auto Enrolment thresholds have all been frozen at the April 2021 levels. For the first time the Lower Earnings Threshold (LET) separates from the National Insurance Lower Earnings Limit (LEL) which rises from 6th April 2022. Automatic enrolment: review of the earnings trigger and qualifying earnings band for … Continue reading Pension AE threshold for 2022/2023 frozen
New rules to ensure savers are fully informed of their options when seeking to access their pension pots became law Monday 17th January 2022. The “Stronger Nudge to pension guidance” measures, which come into force on 1st June 2022, will require occupational pension schemes to present guidance as a routine part of accessing pension savings. … Continue reading New measures introduced to protect savers and boost pension guidance take-up
New measures to protect small pension pots from being eroded by charges were laid in Parliament Monday 10th January 2022. The new rules come into force from April 2022. This mean pension savings invested in the default funds of schemes used for Automatic Enrolment with a value of £100 or less will be exempt from … Continue reading Small pension pot protection
The next review of State Pension age has been launched. The review considers whether the rules around pensionable age are appropriate, based on the latest life expectancy data and other evidence. The Pensions Act 2014 requires government to regularly review State Pension age, and in accordance with law, this latest Review must be published by … Continue reading State Pension Age review
A new type of pension scheme delivering reliable returns – and potentially boosting retirement incomes for millions, will soon become a reality after regulations were laid in Parliament. The new Collective Defined Contribution pension will see both the employer and employee pay into a collective fund, with pensions paid out from this shared pot. Benefits … Continue reading New CDC pension scheme one step closer
The next review of State Pension age has been launched by the Government. The Review is to consider whether the rules around pensionable age are appropriate, based on the latest life expectancy data and other evidence. The Pensions Act 2014 requires government to regularly review State Pension age, and in accordance with law, this latest … Continue reading Second State Pension Age Review
Plans to protect small pension pots from being eroded by charges will be introduced in April 2022. Hundreds of thousands of people will benefit from the new rules outlined by the Department for Work and Pensions (DWP) Tuesday 9th November 2021, which will introduce a threshold at which pensions providers will no longer be able … Continue reading New rules put pension savers’ interests first
New measures to protect pension savers and help stop scam transfers in their tracks became law Monday 8th November 2021. The new regulations, which come into force on Tuesday 30th November 2021 mean suspicious transfers can be stopped from ending up in the hands of a fraudster, as pension trustees and scheme managers get new … Continue reading New measures protect pension savers from scams
Following concerns expressed to government on a purported tax relief anomaly between the Net Pay Arrangement where tax relief at the employees prevailing tax rate is given versus Relief At Source where a 25% top up is applied regardless. The government was concerned about the potential for a low-earning individual’s take-home pay to be affected … Continue reading Pension tax relief response – new NPA top-up
employers warned not to neglect their automatic enrolment responsibilities as use of TPR powers returns to pre-pandemic levels New figures released today show how the overall use of The Pensions Regulator’s automatic enrolment enforcement (AE) powers is back to pre-pandemic levels following necessary measures introduced last spring to support employers through the early months of … Continue reading New figures show The Pension Regulator (TPR) continues to ensure employers are meeting their pension duties
The Secretary of State for Work and Pensions explains uprating for State Pension and Industrial Death Benefit in relation to the general level of earnings for 2022 to 2023. Oral statement to Parliament With permission, Madam Deputy Speaker, I will make a statement on the annual up-rating of State Pensions and survivors’ benefits in Industrial … Continue reading Annual review of State Pension and Industrial Death Benefit rates
In the agent update 87, the HMRC remind agents about an arrangement where a company creates an unfunded pension obligation to pay a director of the company a pension. The company may then transfer their obligation to pay the director a pension to a relative or another individual closely associated with the director. The arrangements … Continue reading Using unfunded pension arrangements
In its response to the consultation on how to implement the normal minimum pension age increase and the proposed protections framework, the government will legislate in the Finance Bill to increase the normal minimum pension age from 55 to 57 on 6th April 2028. This is the age at which most members of registered pension … Continue reading Increasing the normal minimum pension age: consultation response
A new type of pension scheme, with the potential to provide better retirement outcomes and stability, moves a step closer. The new, Collective Defined Contribution (CDC) schemes, will offer savers an income in retirement and also ensure that costs are predictable for employers. They work by both employers and employees contributing to a collective fund, … Continue reading A new way forward for workplace pensions
Plans to support savers seeking access to their pension pots agave been outlined in a change to ensure people are fully informed before moving their money. Currently, when people want access to their savings, their pension scheme is only required to tell them that free, impartial guidance is available from Pension Wise. New “Stronger Nudge” … Continue reading Savers urged to be savvy before shifting savings
The States of Guernsey Committee for Employment & Social Security is seeking to reassure employers and pension providers that they will be given sufficient time to prepare for the incoming Secondary Pensions legislation. The original aim was for the legislation, which is currently being drafted, to come into effect from January 2022, but the Committee … Continue reading Guernsey delay introduction of new Secondary Pension to 2023
Government plans to protect small pension pots by limiting the level at which fees can be charged on them will be outlined today. Proposals include introducing a threshold of £100 or below which a person cannot be charged a flat fee by their pensions provider, helping limit the erosion of small pot pensions and protect … Continue reading Pension fee shake-up
The Pensions Regulator is reminding employers that while the workplace has changed due to the pandemic, their workplace pensions duties have not. All employers have a legal duty to automatically enrol eligible staff into a workplace pension and pay in the correct contributions for them. While these are uncertain times for all employers, they must … Continue reading Employers: Your business might have changed, but your workplace pension duties haven’t.
Savers will have a much clearer picture of their pension pots from next year, thanks to government plans to introduce simpler annual statements. Under new regulations to be outlined this week, the government will require pension schemes to issue their members two-page documents highlighting in simple terms key information including the size of the saver’s … Continue reading Simpler information to transform pension understanding for savers
Pension Automatic Enrolment (AE) was introduced in October 2012 to require employers to provide and contribute to workplace pensions for eligible employees. Employees are eligible if they earn more than £10,000 a year, are aged between 22 years and State Pension age (SPa) and are not already enrolled in a qualifying workplace pension. The proportion … Continue reading Nearly 8 out of 10 UK employees (78%) had a workplace pension in April 2020.
HMRC have published further guidance (29th April 2021) to clarify the position on agency and contractors who are employees of umbrella organisations. Working through an umbrella company Those employed by umbrellas can find out about how and what they will be paid if they are an agency worker or contractor and work through an umbrella … Continue reading HMRC publish guidance for those employed by umbrellas
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
New figures published 18th February 2021 demonstrate how The Pensions Regulator (TPR) is continuing to robustly protect savers. The latest compliance and enforcement bulletin which details enforcement activity carried out between October and December 2020, shows TPR’s use of statutory powers has increased by nearly 50% overall from the previous quarter in line with expectations. … Continue reading Pension enforcement activity rises protecting savers
The biggest shake-up of UK pensions for decades was confirmed Thursday 11th February 2021 as the Pension Schemes Bill received Royal Assent. The Bill, now an Act, will bolster protections for savers and further the government’s green agenda by supporting progress towards net zero. Minister for Pensions, Guy Opperman: This is a historic day for … Continue reading Landmark moment for UK pensions as Bill receives Royal Assent
HMRC have added further clarification to the furlough guidance in relation to salary sacrifice arrangements and the calculation of the reference salary for the Job Retention Scheme. They clarify that: You cannot include the following when calculating wages: payments made at the discretion of the employer or a client - where the employer or client … Continue reading Salary Sacrifice and furlough reference salary
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
Thanks to automatic pension enrolment, over 10 million employees have already been enrolled into a workplace pension. But nobody should save into a pension only to find their hard-earned savings eroded completely away by charges. Minister for Pensions @GuyOpperman: "Protecting savers and giving them value for their money is my priority. No-one should find their … Continue reading New protections for small pension pot fees
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
The pensions industry had been called on to publicly pledge to combat pension scams. Providers, trustees and administrators are urged to help protect savers thinking of cashing in their pensions by ensuring they can spot the warning signs of a scam and are informed of any risks when they look to make a transfer. The … Continue reading Combat Pensions Scam pledge
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
Saver protections will be bolstered by government plans revealed today to “nudge” people towards taking pensions guidance. The proposals follow successful trials, and will require occupational pension schemes to steer members towards taking Pension Wise guidance when they seek to access their pension. The Pension Wise service provides free, impartial guidance to help over 50s … Continue reading Nudge to knowledge: Government to boost pensions guidance take-up
Convoluted pension statements are set to be a thing of the past as the Pensions Minister today unveils innovative plans for simple, annual pension statements The move will build on the enormous success of Automatic Enrolment by improving millions of savers’ understanding of their pensions. Boiling it down to the basics, these two-page statements will … Continue reading Simple Pension Statements
Around a million pensioners across the UK will receive £140 off their fuel bills, thanks to government efforts working with energy firms to cut their costs. Eligible Pension Credit customers who qualify for the discount were identified after the Department for Work and Pensions cross-checked its records with energy suppliers. Customer data was matched with … Continue reading A million pensioners to benefit from £140 winter fuel bill discount
Work and Pensions Secretary, Thérèse Coffey, has introduced a technical Bill in the House of Commons that will give the Government the ability to increase the State Pension next year. Under current legislation, the State Pension can only be increased if there has been a rise in average earnings in the relevant period of the … Continue reading Pension boost protected by new bill
The Government has launched a cross-sector Working Group with industry to assess and make recommendations, as an interim step, on ways to tackle deferred, small pension pots. At a virtual launch event on Tuesday 22 September, the Minister for Pensions and Financial Inclusion, Guy Opperman, outlined his vision for the Working Group, the challenge of … Continue reading Government launches cross-sector Working Group to help address multiple small pension pots
The Queen (oao Delve and Glynn) (Appellants) v The Secretary of State for Work and Pensions (Respondent) The state pension was introduced in 1909 with the same pension age for everyone. In 1940 the age of entitlement for women was reduced from 65 to 60 but retained at 65 for men. The Pensions Act 1995 … Continue reading Women loose state pension age appeal
The government is concerned about the potential for a low-earning individual’s take-home pay to be affected by the method of pensions tax relief operated by their pension scheme. The government is keen to explore this issue further to understand what deliverable options for change may exist. This call for evidence seeks views on how certain … Continue reading Open consultation: Pensions tax relief administration: call for evidence
Guy Opperman The landmark Pension Schemes Bill, bolstering protections for savers and furthering the government’s progress towards net zero greenhouse gas emissions, has cleared its first hurdle in the House of Lords. The Bill will be taken through the House of Commons later this year. A headline measure in the Bill is mandating pension schemes … Continue reading Pension Schemes Bill proceeds
The Pension Regulator (TPR) has updated its COVID-19 guidance as a result of flexible furlough commencing from 1st July 2020. This new guidance recognises that: from 1st July 2020, staff on furlough under the Coronavirus Job Retention Scheme may work part of the time for their employerfor claims starting on or after 1st August 2020, … Continue reading Flexible furlough – the Pension Regulator updates to guidance
The chancellor, Rishi Sunak, has issued a new direction to HMRC in the operation of the coronavirus Job Retention Scheme. Rishi Sunak The guidance under ‘Check which employees you can put on furlough to use the Coronavirus Job Retention Scheme’ has had further updates. Added new detail to reflect the new direction on what duties … Continue reading Latest direction on the #coronavirus Job Retention Scheme #COVID19 20th May 2020
The Pension Regulator TPR have issued both added and new guidance for employers on pension obligation and salary sacrifice implications for employees who have been furloughed. Automatic Enrolment and DC Pensions - COVID19 guidance for employers Salary sacrifice pension and furlough The TPR explain the implications of salary sacrifice pension arrangements for employees and their … Continue reading Pension contributions 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
The Pension Regulator (TPR) have updated and added to their #COVID19 information and provided further clarity in relation to employers who have furloughed staff. The TPR state that they ‘will take a proportionate and risk-based approach towards enforcement decisions, in light of these challenging times, with the aim of supporting both employers and savers’. So … Continue reading Furlough and Pension contribution obligations #COVID19 #coronavirus
Scammers are attempting to capture your personal detail to commit fraudulent activity. HMRC are warning about text messages that look similar to the stay at home message from GOV.UK that falsely indicate a tax refund. Helping protect your members from scams The Pension Regulator (TPR) are concerned that during this difficult period, many may be … Continue reading Avoid the SCAMS #COVID19 #coronavirus
Andy Nicholls is reporting at #CIPPACE19 that a number of employers are applying the wrong tax relief to their workplace pensions. The tax relief terms are confusing and may be misunderstood. Net Pay Arrangement have tax relief through pay. They are not pension contributions from net pay. Relief At Source schemes have no payroll tax … Continue reading Check your Pension Scheme tax relief
Andy Nicholls of The Pension Regulator has been providing an update at the #CIPPACE19 annual conference. Over 1.5 million employers have in place workplace pensions as a result of Pension Auto Enrolment. Further changes are proposed to reduce the age range covered (reducing to 18) and reducing the lower threshold of qualifying earnings to zero.
Guy Opperman, Minister for Pensions and Financial Inclusion said: “Pensions are one of the largest and most important investments we’ll ever make, and robbing someone of their retirement is nothing short of despicable.” “We know we can beat these callous crooks, because getting the message out there does work. Last year’s pension scams awareness campaign … Continue reading Avoid the Pension Scammers – don’t be fooled
Committee room 1 of the House of Lords and today's discussion around pension interface standards, data quality and future pensions law considerations. Can both the pensions and payroll industry benefit from the use of APIs and a common standard? Would that ever be achieved without a legal compliance framework? The consistency of data requirements across … Continue reading Payroll and Pension standards and API interfaces – essential for future success?
Today in committee room 2a of the House of Lords, Payroll and Pension professionals under the chair of Baroness Altman discussed the challenges of multiple disparate pension interfaces that UK PLC have had to face with the onset of Pension Auto Enrolment. It is time for the industry to set a single contributions interface format … Continue reading Pension APIs
On my way from Peterborough to the Department for Work and Pension celebration event at the Palace of Westminster. It only seems like yesterday since being sat in the then Pension Minister, Steve Webb office along with PIP to discuss the challenges of AE for employers, payroll and pension providers. As a result the process … Continue reading Pension Auto Enrolment celebration event 30th April 2019
PAYadvice.UK 