Q: I have just discovered that there is an error for the 2012/13 tax year. What should be done? A: How you correct figures for a previous tax year depends on how you submitted your end of year figures for that particular year. If you submitted a P35 and P14 returns then you will need to submit amended forms that show the difference between what was reported and what should have been reported. As you went live with RTI in March
Advisory Service is available 9a.m to 5p.m. Mondays to Thursdays, and 9a.m. to 4.30p.m. on Fridays. It is free to all CIPP members, students and attendees of approved CIPP courses and conferences in the last six months. Call 0121 712 1099, email
advisory.service@
cipp.org.uk or visit
www.cipp.org.uk for frequently asked questions.
Q: Which tax code must be applied when processing unapproved share options? We have two different situations that need to be processed – one for a current employee and the second is an ex-employee who is in receipt of a pension from us. I have been told that I should always apply BR. A: If the payment is made after the P45 has been issued, then the employer should always apply the tax code 0T on the non-cumulative basis. The BR code was only imposed for twelve months; once the change to the pay as you earn regulations at 2011 occurred the BR code was superseded by 0T non-cumulative. If the P45 has not yet been issued then you should operate the employee’s tax code that is in place at the time of calculation.
Q: Our staging date is 1 January 2014 and we run a weekly payroll which is processed on the Monday of each week for work completed for the previous week (Monday to Sunday). Payment goes into employee bank accounts on the Thursday of each week i.e. on Monday 30 December we will process the payroll for all work completed between 23 and 29 December and pay this to our employees on 2 January. Which pay period should we be using for assessing our workforce and for automatically enrolling our eligible workers – that which will be
8 PayrollProfessional
processed on the 30 December 2013 or the following 6 January 2014? A: The date the work was completed by the employees is not the issue here; rather it is when the payment is being made. The employer can, from 1 November 2013, choose to align the pay reference period either to “one that is aligned to the period by reference to which a person is paid their regular wage or salary” or to the tax period.
If you use the salary date as the reference, it means that in your situation the week would run from 26 December 2013 to 2 January 2014. Your staging date will fall during this period at which point you must assess all you employees and automatically enrol all eligible workers. However, if you used the tax period as the pay reference period, then in this instance it would start on 28 December 2013 and run until 3 January 2014. Your staging date will fall during this period at which point you must assess all you employees and automatically enrol all eligible workers. The Pensions Regulator updated its guidance to take account of changes brought in following their consultation in 2013. Guidance for employers can be accessed at
www.thepensionsregulator.
gov.uk/doc-library/automatic-enrolment- detailed-guidance.aspx. If you scroll to the bottom of the web page all guidance can be downloaded in a zipped file, alternatively you can pick and choose which section of guidance you may wish to access.
2013 your end of year figures for 2012/13 will have been included on the final full payment submission (FPS) for that year. To correct final year to date figures previously reported on a FPS you will have to report this new information via an earlier year update (EYU). As you want to change the amount of pay, income tax and national insurance contributions (NICs), your EYU should only record the difference between what you had originally submitted and what the figure should be. For example if you wanted to reduce taxable pay figure by £200.00, income tax by £20.00 and NICs by £10.00, then you would enter these figures as minus amounts.
If you are not able to submit an EYU using your software, you can submit the EYU through HM Revenue & Customs’ (HMRC’s) Basic PAYE Tools (BPT). You can send an EYU using BPT regardless of how many employees you have and whether you use another software product to run your payroll.
Q: I have recently taken over responsibility for a pensions payroll. Do I issue P60 certificates? A: Yes, the employer, annuity or pension company has the same requirement to provide a P60 end of year statement to all pensioners, as they would for all employees who remain on the payroll as at 5 April 2014.
Q: An employee formerly worked for the Armed Forces; however, it would appear that when he joined our company he was still employed by them but on termination leave. He tells me that he cannot be paid by us for the period 11–17 November 2013 but that he can be paid from 18 November 2013 which was the date he became free of his termination leave. Can you provide advice?
membershipfocus ADVISORY
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