payrollnews RTI help for micro employers
ALTHOUGH THE vast majority of employers are finding real time information (RTI) reporting straightforward, HM Revenue & Customs (HMRC) recognises that a small proportion of micro employers and their agents still need more time to adapt. In December 2013, HMRC announced a package of help developed with employers, agents, payroll software providers, representative bodies and the DWP. Existing micro employers (i.e. nine or fewer employees) – and, where appropriate, their agents – who need more time will have up to two years to adapt their processes to ensure they are ready to report all payments in real time before April 2016. These employers (and their agents) will be able to report pay as you earn (PAYE) information on or before the last payday in the tax month until April 2016. All employers will be required to report PAYE each time they pay their employees by April 2016 (unless an exception applies, e.g. in some limited circumstances employers have a week to report payments to casual workers). All employers starting to operate PAYE after 6 April 2014, as well as existing employers with ten or more employees, will need to
report each time they pay their employees from April 2014. The package also includes: improved guidance, including best practice scenarios; and ongoing work with the software industry to harness technology to develop new ways to report PAYE information on or before the date they pay their employees e.g. by exploring use of mobile apps.
Scottish rate income tax
THE GOVERNMENT has decided that, in order to ensure that, as far as possible Scottish taxpayers receive the correct amount of relief into their pension pot, relief at source (RAS) will be paid at Scottish rates of income tax for Scottish taxpayers. This will mean the pensions industry being able to differentiate between Scottish and rest of the UK taxpayers in their records and make RAS claims at both Scottish basic rate and the basic rate applicable to the rest of the UK. HMRC intends to provide information to pension scheme administrators to allow them to identify which of their members are Scottish taxpayers.
Currently it is planned that from April
2018 the industry should be ready to make RAS claims at the Scottish basic rate. In the meantime, to ensure that pension scheme members who are Scottish taxpayers are not disadvantaged, from April 2016 pension scheme administrators can continue to claim RAS at the UK basic rate of tax for all members and HMRC will identify Scottish taxpayers and make any adjustment (depending on the rate set by the Scottish government), to the relief given direct with the scheme member. This will be done either through the self-assessment process or PAYE coding.
And, briefly… l Student loan threshold – The annual threshold for tax year 2014/15 will be £16,910. l TUPE – The Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2013 will come into force on 31 January 2014. l NMW guidance – The Department for Business, Innovation and Skills (BIS) has (re) published guidance – Calculating the Minimum Wage. l AE guidance – The Pensions Regulator has published a new version of the employer detailed guides on automatic enrolment (AE) reflecting the changes that took effect on 1 November 2013 (
www.thepensionsregulator.gov.uk/doc-library/automatic-enrolment- detailed-guidance.aspx). l DEA guidance – The DWP has published updated guidance for employers on direct earnings attachments (DEAs) (
www.gov.uk/government/publications/direct-earnings- attachments-an-employers-guide). l CWG2 (2013) updated – A revised version of the Employer further guide to PAYE and NICs has been issued by HMRC (
www.hmrc.gov.uk/guidance/cwg2.pdf).
Zero hours contracts A CONSULTATION exercise has been launched by BIS which seeks further evidence on the problems identified around the use of zero hours contracts. The closing date for responses is 13 March 2014. The consultation invites responses to a number of potential actions the government could take to address the identified problems. Views are sought in particular on maintaining a fair balance between the flexibility provided by zero hours contracts and ensuring adequate protection for individuals who experience some of the issues identified. To address exclusivity clauses (which prevent an individual from working for another
employer, even if the current employer is offering no work) in zero hours contracts, views are sought on the following options: l banning the use of exclusivity clauses in contracts that offer no guarantee of work l government issuing guidance on the fair use of exclusivity clauses l encouraging production of an employer-led code of practice on the fair use of exclusivity clauses, with an additional option to seek government sponsorship of that code, or l relying on existing common law redress which enables individuals to challenge exclusivity clauses. To improve transparency over zero hours contracts, views are sought on the following
options: l improving the content and accessibility of information, advice and guidance l encouraging a broader, employer-led code of practice which covers the fair use of zero hours contracts generally, and l whether and how government could produce model clauses for zero hours contracts. After considering the responses, the government will publish a formal response to the issues identified through this consultation, including information on what further action it intends to take.
PayrollProfessional 19
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