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As reported in an earlier newsletter, the minutes of the 17 April 2008 meeting of HMRC’s Benefits and Expenses Sub Group reveal that there is a potential problem for some salary sacrifice schemes if they do not satisfy all of the statutory conditions on which their respective tax or NICs exemption depend. For example, the tax exemption that makes the “cycle-to-work” schemes possible requires that the scheme is made generally available to all employees. If specific groups of employees are excluded from the scheme, the exemption is not met and HMRC’s view is that the salary sacrifice scheme fails, with expensive consequences for the employer.
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Posted November 17th, 2008 | No Comments »
In June 2008, HMRC published a new factsheet on employment status for the benefit of workers. This has now been complemented by a fact sheet for employers. The new factsheet replaces the old IR56 booklet but is much shorter, on the assumption that employers will initially have used the online Employment Status Indicator (ESI) tool to check the employment status of a particular worker.
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Posted November 3rd, 2008 | No Comments »
In response to concerns raised by payroll software developers about the font sizes specified for the A4-size plain-paper P45 that comes into use from the end of October, HMRC has published a revised detailed specification for the benefit of payroll software developers. There is no change to the layout of the form, only a relaxation to the font sizes that may be used. A further revision to the specification is also being prepared to make the plain-paper P45 identical in all respects with the pre-printed versions. As a result of these revisions, some payroll systems will not be ready to provide the facility for employers to print out their own P45s until December or later.
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Posted October 27th, 2008 | 2 Comments »
The new A4-size P45, which comes into use from 27 October 2008, can be printed on blank A4 paper using in-house printers if the employer files Part 1 online. Some computerised payroll systems will introduce this facility before that end of the tax year; others may not provide it until the start of the new tax year.
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Posted October 6th, 2008 | No Comments »
Last week’s newsletter provided an overview of the new form P46(Pen) Notification of pension starting and how it will be used from April 2009. HMRC’s intention has been for the form to be used in all cases to report the tax code used by a pension payer (former employer or otherwise) for a new pensioner.
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Posted September 7th, 2008 | No Comments »
HMRC is introducing two additional P46 forms from 6 April 2009: Continue reading
Posted August 31st, 2008 | No Comments »
The increased personal allowance comes into effect from paydays falling on or after 7 September. The following new documents and booklets that reflect this change are now available to download from HMRC’s website:
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Posted August 25th, 2008 | No Comments »
A further series of questions and answers on the operation of salary sacrifice (SS) schemes has been published on HMRC’s website. Some of the questions appear to have been prompted by the recently published guidance on the changes to be made to the provision of benefits-in-kind during maternity leave from October 2008.
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Posted August 18th, 2008 | No Comments »
The Finance Act 2008 completed all of its stages before Parliament went into recess on 23 July. Most of the payroll-related measures included in the Act are not news but the following notes summarise the changes that are now in force. (The references after each item are the section number of the Act and, where known, the date from which the measure is effective in law.)
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Posted August 4th, 2008 | No Comments »
HMRC has provided two pages of information, one for individuals and one for employers, about the way in which the increase in the personal allowance will be introduced from 7 September 2008.
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Posted July 21st, 2008 | No Comments »
