membershipfocus advisory
A: This is clearly not a trial attachment (see
www.ctp.org.uk/employers/trial- attachments) so your employer has a duty to pay at least the national minimum wage (NMW) for the work done by this new employee, and you may be in breach of contract if you do not pay the employee at all. Just because the employee should not normally work in the termination leave period, does not mean that the employer does not have a legal duty and responsibility to pay the employee for the work he has completed. Your human resources team may want to revisit this event and look to put into place processes which would avoid this situation happening again.
Q: Is it possible for a P11D return to be produced without showing a car make or model, as I have been informed that this is called ‘car averaging’ and the employer (our client) is a car dealership? A: Only employers within the motor trade can apply car averaging for qualifying employees. The employer is, however, still free to apply the normal rules for reporting the company car benefit. Car averaging requires the employer to follow a seven-step averaging process which will: l identify the cars to be averaged; and recognising that this will vary throughout the year, the employer will need to take snapshot on a consistent date in each tax year on a night of the employer’s choice during the period 17-31 January of the previous tax year l separate the cars into groups that will be local, regional or national as identified in the step above l calculate the average price of the notional car in each group by taking the uncapped price of each car within the group, adding these together and dividing by the number of cars in the group l calculate the average CO2 emissions and appropriate percentage of the notional car in each group l determine the benefit charge for the notional car in each group l identify employees within these arrangements, and l allocate those employees to groups. The detail required for each step can be found within HMRC’s Employment Income Manual (
www.hmrc.gov.uk/manuals/ eimanual/
EIM23825.htm).
Q: Does the CIPP hold any salary benchmarking for payroll professionals? A: The CIPP does not currently have any information on salary benchmarking for the payroll industry. However, the following have salary guides which can be downloaded from their websites: l Hays recruitment (payroll falls under the accountancy and finance guide) l James Grey Associates / payroll jobs board. Their guides are based on the salaries offered and accepted by the payroll candidates registered with them. Hays presented at the CIPP Hot
Topics events during Autumn 2013 and confirmed that payroll salaries have increased by an average of fifteen per cent over the last twelve months!
Q: One of our clients is relocating approximately fifty miles away. The company is contemplating supporting those employees who continue to be employed with fuel cards or a garage account for fuel in the employee’s own car. Would this be considered a benefit in kind? A: Yes, this would be considered to be a benefit in kind and the employer would need to report this on a P11D return. It will also attract Class 1A NICs. The employee is using the fuel to travel between home and the new normal workplace which would be considered normal commuting and therefore has to be classed as a benefit.
Q: An employee will not provide the company with their correct national insurance number (NINo). Is there anything we can do about this? A: The employee has a legal duty to provide the employer with their NINo where they have one. If they do not provide this information to the employer HMRC will not be able to allocate contributions to the employee’s records. The employer should ensure they document that they have requested the NINo and if it is not forthcoming to leave the NINo box empty when entering their employee details to payroll. In the event that HMRC records can identify the employee’s missing NINo, the employer will be notified through the normal notification route of the correct number to use.
PP PayrollProfessional 9
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56