Category: Taxation

Open consultation: Pensions tax relief administration: call for evidence

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 →

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 →

Permanent protection from higher tax for military personnel in Scotland

Thousands of British Armed Forces personnel will continue to be protected from income tax rises passed by Holyrood. More than 7,000 troops left out of pocket by higher taxes in Scotland will again be protected in the next financial year. An annual payment will continue to be provided to serving personnel earning £28,443 or more … Continue reading Permanent protection from higher tax for military personnel in Scotland →

Tax gap falls to lowest recorded rate

Since 2010, the government has introduced over 100 measures to tackle tax avoidance, evasion, and other forms of non-compliance, that secured and protected over £220 billion that would otherwise have gone unpaid. In 2018 to 2019, HMRC secured a record £34.1 billion in additional tax through activity tackling tax avoidance, evasion and non-compliance. There is a long-term downward trend in the … Continue reading Tax gap falls to lowest recorded rate →

Update – Coronavirus (COVID-19) tests – tax and NI free

Following some criticism of the original HMRC confirming a tax and Class 1A liability, the government are making a legal change. HMRC have confirmed the following on Thursday 9th July 2020. Coronavirus tests provided by the government, as part of its national testing scheme, are not treated as a benefit in kind for tax purposes. … Continue reading Update – Coronavirus (COVID-19) tests – tax and NI free →

Find out more about the Job Retention Bonus Scheme

8th July 2020 Dear @PAYadvice, Today the Chancellor announced the introduction of the Job Retention Bonus. This is a one-off payment of £1,000 to employers that have used the Coronavirus Job Retention Scheme (CJRS) for each furloughed employee who remains continuously employed until 31‌‌‌ ‌January 2021. The bonus will provide additional support to retain employees. … Continue reading Find out more about the Job Retention Bonus Scheme →

Update to Expenses and Benefits during #COVID19 #coronavirus (updated 8th July 2020)

HM Revenue and Customs have updated guidance (6th July 2020) in relation to 'Coronavirus (COVID-19) tests' and 'Personal Protective Equipment (PPE)'. Then a further update was applied on 8th July removing the section on ‘Coronavirus (COVID19) tests. Expenses and Benefits during COVID-19 The following was removed on Wednesday 8th July 2020 Coronavirus (COVID-19) tests Coronavirus … Continue reading Update to Expenses and Benefits during #COVID19 #coronavirus (updated 8th July 2020) →

Mandatory MOT testing to be reintroduced from 1st August 2020 #COVID19 #coronaviris

Mandatory MOT testing is reintroduced from 1st August 2020 as COVID-19 restrictions are slowly lifted. MOT ensure that vehicle parts, including tyres, seatbelts, brakes, lights and exhausts, are in proper working order. Due to the #coronavirus outbreak, drivers were granted a 6-month exemption from MOT testing in March to help slow the spread of the … Continue reading Mandatory MOT testing to be reintroduced from 1st August 2020 #COVID19 #coronaviris →

P45 & P60 stationery being withdrawn

HMRC are to withdraw the facility for employers to order blank P45s and P60s from 1st August 2020. The HMRC forms were provided free of charge. Only 3% of employers ordered HMRC provided stationery in 2019. Most employers either print their own P45s using A4 plain paper black and white images, or use approved P60 … Continue reading P45 & P60 stationery being withdrawn →

Penalties and appeals #HMRC #coronavirus #COVID19

Support available during the Coronavirus (COVID-19) pandemic - Late filing and payment penalties HMRC is supporting taxpayers during the Coronavirus (COVID-19) pandemic... [Taxpayers] should continue to pay and file on time... However, HMRC understands that some... will find it difficult to meet deadlines. For example, they may not have access to their business premises or be … Continue reading Penalties and appeals #HMRC #coronavirus #COVID19 →

Withdrawn job offer #COVID19 #coronavirus

In light of #COVID19 #coronavirus, can an employer withdraw a job offer? ACAS indicate that an employer can withdraw a offer of a job. However, if the offer had been accepted, then there may be a potential breach of contract. So there some question over whether the offer was conditional or unconditional. More information can … Continue reading Withdrawn job offer #COVID19 #coronavirus →

Returning to work – Cycle to work boost #COVID19 #coronavirus

“One form of transport which has seen a significant increase is cycling – it is great to see people switching to a clean, green mode of transport with significant public health benefits” - Grant Shapps (4th June 2020) Grant Shapps Back on 9th May the government launched its campaign for a new era of walking … Continue reading Returning to work – Cycle to work boost #COVID19 #coronavirus →

Drivers granted 7 month photocard licence extension #COVID19 #coronavirus

Drivers with a photocard driving licence due to expire between 1st February and 31st August 2020 will be granted a 7 month extension from the date of expiry the DVLA has announced 4 June 2020. This will help drivers to make necessary journeys without having to obtain a new photograph to renew their licence. Normally … Continue reading Drivers granted 7 month photocard licence extension #COVID19 #coronavirus →

Latest direction on the #coronavirus Job Retention Scheme #COVID19 20th May 2020

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 →

Off-Payroll rules progressing for April 2021 private sector introduction

The government are progressing the introduction of off-payroll working / deemed employment / IR35 changes in the private sector to mirror tax and NI activity that has applied in the public sector for the past few years. Originally intended for introduction from April 2020 and delayed by #coronavirus #COVID19, an amendment to the finance bill … Continue reading Off-Payroll rules progressing for April 2021 private sector introduction →

Disguised remuneration Loan Charge – 20th September 2020 deadline

PAYadvice (as an AML HMRC regulated agent) can assist with the filing of the Loan Charge form on your behalf. If you need our assistance please make contact stating ‘Loan Charge’ within your contact message. HMRC have confirmed that any outstanding disguised remuneration loans that are subject to the Loan Charge must report the details … Continue reading Disguised remuneration Loan Charge – 20th September 2020 deadline →

Self Assessment – Affected by #COVID19 – Defer your July payment – #coronavirus

New HMRC guidance explains how Self Assessment customers who have been affected by #coronavirus can defer their payment on account that would normally be due in July. For those who need to defer, remember to cancel any direct debits set up to make this payment. HMRC will automatically treat it as a deferral if they … Continue reading Self Assessment – Affected by #COVID19 – Defer your July payment – #coronavirus →

Waiving Income or Salary as a result of #COVID19

Employers, directors and employees may want to waive their rights to salaries and bonuses during the Covid-19 pandemic to support their own business or donate to good causes related to Covid-19. Where directors give up part of their salary or bonus to a third party or direct that the money be used in a particular … Continue reading Waiving Income or Salary as a result of #COVID19 →

Filing deadlines (P11D, PSA etc) and #COVID19 #coronavirus

P11D deadlines are looming As a result of #coronavirus lockdown and increased home-working arrangements, many payroll and reward professionals are concerned with some of the rapidly arriving submission and distribution deadlines and whether they can be met. Access to documentation, records, and interaction with benefit providers may be difficult! Ability to print forms and distribute … Continue reading Filing deadlines (P11D, PSA etc) and #COVID19 #coronavirus →

Exemption for #coronavirus related reimbursed home office expenses #COVID19

The UK government have announced in the House of Parliament and the House of Lords tax concession for employers reimbursing employee purchased equipment for home working backdated to 19th March 2020. Exemption for coronavirus related reimbursed home office expenses:Written statement - HCWS237 Jesse Norman (The Financial Secretary to the Treasury) To support employees who are … Continue reading Exemption for #coronavirus related reimbursed home office expenses #COVID19 →

Scottish Tax Changes come into force from 11th May 2020

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 →

P11D 6 July 2020 deadline to still apply! #COVID19 #coronavirus

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/874060/P11D_expenses_benefits_2020.pdf PAYadvice has made representations to HMRC on the various deadlines and any planned extensions. Employers find themselves in positions of having limited access to expenses and benefit records in the lead up to the P11D reporting season. Can payroll and benefit administrators have everything ready for the 2020 deadlines? HMRC indicate on information published … Continue reading P11D 6 July 2020 deadline to still apply! #COVID19 #coronavirus →

Volunteer fuel and mileage costs #COVID19 #coronavirus

Some employers are supporting furloughed employees who volunteer for charities and to support organisations such as the NHS etc. HMRC have clarified the tax position of reimbursements by the employer for fuel and mileage costs associated with volunteering. HMRC confirm 6th May 2020 the following: To support volunteer work by your employees, you may agree … Continue reading Volunteer fuel and mileage costs #COVID19 #coronavirus →

Company car during #COVID19 #coronavirus lockdown – HMRC clarification

HMRC has issued clarification (6/5/2020) on the treatment of company cars for those home-working or furloughed where the vehicle is not actively being used. Company car ‘availability’ Your employee may have been furloughed or is working from home, because of coronavirus, and provided with a company car which they still have. You should treat the … Continue reading Company car during #COVID19 #coronavirus lockdown – HMRC clarification →

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. →

New P46(Car) form released

HMRC have released (28th April 2020) the updated P46(Car) for use from 6th April 2020 for those employers reporting company car benefit on form P11D. For those who formally payroll benefits in kind including company cars, do not use this form but report car details on the Real Time Information, Full Payment Submission. Using the … Continue reading New P46(Car) form released →

Employer Bulletin (April 2020, Issue 83)

https://www.gov.uk/government/publications/employer-bulletin-april-2020 The HMRC have issued the April 2020 bulletin issue 83. The highlight subjects: Links to #COVID19 you tube resourcesSSP rebate schemeSupporting employeesUpdate on benefits and tax creditsWorkplace pension remindersSalary SacrificeNew Starter checklistScottish Income Tax (starting 11th May 2020)Company car changesEtc Employer Bulletin 83 - April 2020 #COVID19 HMRC you tube PAYadvice.UK 24/4/2020

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 →

Employers! Furloughed? Are you preparing for the grant claim? You need an online HMRC account to claim? Apply now! #COVID19 #coronavirus

The Coronavirus Job Retention Scheme (CJRS) Have you furloughed some staff and anticipate applying for the CJRS grant? You need to ensure that you have online access for your PAYE scheme, or utilise your authorised tax filing agent (referred to as a 64-8 authorised agent who will also be regulated for Anti-Money Laundering). Setup of … Continue reading Employers! Furloughed? Are you preparing for the grant claim? You need an online HMRC account to claim? Apply now! #COVID19 #coronavirus →

Contingent workers in the public sector #coronavirus #COVID19

The Cabinet Office have issued guidance on how payments to suppliers of contingent workers impacted by COVID-19 should be dealt with where the party receiving the contingent worker’s services is a Central Government Department, an Executive Agency of a Central Government Department or a Non-Departmental Public Body. The guidance operates similar to the Coronavirus Job … Continue reading Contingent workers in the public sector #coronavirus #COVID19 →

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 →

NHS returners being targeted by unscrupulous tax avoidance schemes #COVID19 #coronavirus

https://www.gov.uk/guidance/tax-avoidance-promoters-targeting-returning-nhs-workers-spotlight-54 ..’unscrupulous promoters of tax avoidance schemes are targeting workers returning to the National Health Service (NHS) to help respond to the coronavirus (COVID-19) outbreak’ ....All of these schemes have one thing in common and that is to attempt to disguise the true level of your earnings, which would ordinarily be subject to Income Tax … Continue reading NHS returners being targeted by unscrupulous tax avoidance schemes #COVID19 #coronavirus →

At last! The updated tax calculation specification #Budget2020

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 →

GPA – uniting payroll #COVID19 #coronavirus #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 →

VAT deferral #COVID19 #coronavirus

https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19 If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to: defer the payment until a later datepay the VAT due as normal HMRC will not charge interest or penalties on any amount deferred as a result of the … Continue reading VAT deferral #COVID19 #coronavirus →

New Income Support Scheme for Self-employed #COVID19 #coronavirus

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme The scheme allows the self employed to claim a taxable grant worth 80% of trading profits up to a maximum of £2,500 per month for the next 3 months. Who can apply Self-employed individual or a member of a partnership and: submitted Self Assessment tax return for 2018-19traded 2019-20are trading when you apply, or … Continue reading New Income Support Scheme for Self-employed #COVID19 #coronavirus →

HMRC issue guidance on expenses and benefits related to #Homeworkers #COVID19 #coronavirus

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 →

Avoid the SCAMS #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 →

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 →

Off-Payroll working measures delayed until April 2021 – #COVID19 #coronavirus

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 →

Scottish tax changes applicable from Monday 11th May 2020

The Scottish government have confirmed that the ‘management of the income tax.. for Scotland ... is the responsibility of HMRC. Due to the timing of the Scottish, Welsh and Westminster Budgets...an update will be issued and an agreed date .. provided as soon as possible in 2020/21’. Scottish Parliament HMRC have today confirmed that the … Continue reading Scottish tax changes applicable from Monday 11th May 2020 →

When will Scottish tax changes go ahead?

So the Westminster budget has happened and the personal allowance for the UK left at £12,500. So no change for England, Northern Ireland and Wales. The Scottish Parliament have approved changes to Scottish taxation, yet the GOV and HMRC have issued last years values and not the Scottish Parliament set bands and thresholds! What is … Continue reading When will Scottish tax changes go ahead? →

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! →

Scotland the brave – Scottish Income tax changes proposed for 2020

The Scotland Act 2016 conferred on the Scottish Parliament the power to set all income tax rates and bands for the non‐savings non‐dividend (NSND) income of Scottish taxpayers. The responsibility for defining the income tax base, which includes the setting or changing of income tax reliefs and exemptions, including the Personal Allowance, remains with the … Continue reading Scotland the brave – Scottish Income tax changes proposed for 2020 →

Scottish budget set for Thursday 6th February 2020

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 →

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 →

Check your Pension Scheme tax relief

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 →

#CIPPACE19 HMRC panel session

Colin Shingler and Gerry McShane answer questions in relation to a number of payroll and PAYE challenges at the CIPP conference 3rd October 2019. Employers still experience difficulty with the P45 process, however, HMRC state that there is no immediate plans to remove the P45 and that it works well in many cases. However, a … Continue reading #CIPPACE19 HMRC panel session →

Off-Payroll Working (IR35) government response published, changes going ahead for April 2020

Thursday 11th July 2019 and HM Revenue and Customs have published the governments response to the consultation along with draft regulations and TIIN etc. At the Chartered Institute of Payroll Professionals (CIPP) meeting in London, HMRC representatives outlined some of the principles of this new obligation on engagers and the potential implications on payroll operation … Continue reading Off-Payroll Working (IR35) government response published, changes going ahead for April 2020 →

New starter declaration C tax code 0T/1 – is it OK?

Tax code 0T is likely to be wrong in many cases The HMRC data quality team have been investigating what they consider to be employer error on Real Time Information (RTI) Full Payment Submission (FPS). One of those so called errors are the over 1/2 million new starters that have their first FPS starter record … Continue reading New starter declaration C tax code 0T/1 – is it OK? →

You’re not a Scottish Tax payer

A query investigated this week from a Scottish employers auditor was why a Scottish resident tax payer had not been calculated at the Scottish starter tax rate of 19% when in the first month of their employment. The reality is that you cannot be a Scottish tax payer until HMRC say so! Equally the auditor … Continue reading You’re not a Scottish Tax payer →

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 →

Welsh Tax code prefix C

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/801966/Jim_Harra_letter_to_Welsh_Finance_Committee.pdf HMRC are indicating that some employers have not applied the issued C prefix to their payroll application. RTI data is indicating that: - either the C prefix is missing - the Welsh and rest of the UK tax rates (excepting Scotland) are the same this tax year - S prefix is being reported instead … Continue reading Welsh Tax code prefix C →