With the festive period upon us, some employers may want to provide their employees with a gift or bonus, but how will this affect your payroll? CHRISTMAS BONUSES All cash bonuses paid at Christmas count as earnings and must go through payroll in the normal way. Non-cash vouchers, and benefits with a money’s worth are […] Read more »
Don’t pay HMRC too early!
Since Real Time Information (RTI) started, some employers have been experiencing difficulties in reconciling the difference between the tax they think is due, and the tax HMRC think is due according to the RTI submissions. As I mentioned in my last blog, it is vital for employers to use their correct PAYE Accounts reference for […] Read more »
RTI: The importance of reporting Hours Worked
From October 2013, the new Universal Credits system will start to be introduced around the UK. This new benefits system will replace income support, housing benefit, job seekers allowance and employment and support allowance. Then, from April 2014, workers who are currently claiming tax credits will claim universal credits instead. It is therefore crucial that […] Read more »
Paying HMRC correctly
Since April 2013 and the introduction of RTI (Real Time Information), HMRC know exactly what each employer owes them every month and are quick to chase for late payments or apparent underpayments. We have seen many cases recently of our clients being sent demands for underpayments when in fact they have paid the correct amounts, […] Read more »
RTI…Is it working so far?
Since RTI started, we are told that the majority of employers have come on board and have been submitting successfully and all is working well. However, for many employers this has not been the case, and although they have reported RTI correctly, they have been inundated with apparent underpayments due to discrepancies between the employers […] Read more »
HMRC confirms number of RTI non-filers
Hundreds of thousands of companies have so far failed to report Real Time Information (RTI) to HMRC. HMRC say that 300,000 schemes have not made the switch to RTI as at 5th June. As a result those companies have been sent letters informing them of their legal requirement to have filed PAYE in real time […] Read more »
Wrong Payroll Dates for RTI?
Now that RTI is in it’s third month since going live, the reporting of PAYE in real time has highlighted to HMRC that some employers are not operating PAYE correctly. Employers must ensure that PAYE is calculated and reported according to their actual payment date: NOT the date the payroll is run and NOT the […] Read more »
Budget News
Personal Allowances The latest budget has confirmed that the basic personal allowance will be increased from the current £8,105 to £9,440 for 2013/14. The Coalition Government plan to ultimately raise the allowance to £10,000 from 2014/15. The additional tax rate of 50% is reduced to 45% for 2013/14 for taxable income over £150,000. National Insurance […] Read more »
Tax Year End Procedure 2013
The end of another tax year is approaching. This is a busy time for payrollers and there are numerous payment and reporting deadlines to be met if penalties are to be avoided. It is vital that employers and their agents understand what needs to be done and when, and that they have all the required […] Read more »
New Starters and RTI
With RTI imminent, the way employers report new starter information to HMRC will change. You will no longer submit P45s or P46s as all starter information will be reported on the first Full Payment Submission (FPS) for those employees. Previously, a new starter would provide their new employer with either a P45 or a P46 […] Read more »
Child Benefit Change for High Earners
From 7th January 2013, any taxpayer earning more than £50,000 a year who receives Child Benefit, or whose partner receives Child Benefit, will be liable to incur a new income tax charge. Anyone who has to pay the charge will need to pay an amount equivalent to some or all of the Child Benefit that […] Read more »