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| Super Summer Online Training Offer |
We are pleased to announce some fantastic summer offers during the months of July and August.
If you book and pay for one of the online courses listed below before 31st August 2007, we will give you up to £400 off our normal course fee.
*Prices exclude VAT.
Telephone: 01295 225500
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News Items – at 16th July 2007
The PAYE Quality Standard Validation Specification that will apply to payroll year-end returns in respect of the 2008/09 tax year has now been published.
Further information:
Quality Standard and Business Validation Specification From April 2008 http://www.hmrc.gov.uk/ebu/qual_stand_08.pdf
Section 50 of the Employment Rights Act 1996 provides a right for employees to be granted time off by their employers to perform public duties. The nature of those duties is set out in the Act.
The Scottish Schools (Parental Involvement) Act 2006 replaced “school boards” with “parent councils”. As a result, the relevant wording of the Act is amended so that employees who sit on parent councils must be allowed time off during working hours to perform the duties required of them.
Further information:
The Time Off for Public Duties (Parent Councils) Order 2007 http://www.opsi.gov.uk/si/si2007/uksi_20071837_en.pdf
Payroll deadlines during the next month
July 19 – This is the deadline for payment of tax and NICs to the Accounts Office, for tax month 3 by employers who pay monthly, for tax months 1 to 3 by employers who pay quarterly, unless they make their payments electronically.
July 19 – This is the deadline for payment of Class 1A NICs to the Accounts Office in respect of benefits in kind reported by employers on forms P11D for the 2006/07 tax year, unless they make their payments electronically.
July 20 – (July 22 is a Sunday) – For employers who pay their tax and NICs to the Accounts Office electronically, this is the deadline for electronic payments, including payments of Class 1A NICs to be cleared into the HMRC bank account. Payments through BACS must be initiated by July 18 at the latest.
August 2 – This is the date by which any changes to the provision of company cars in the three months to July 5 must be reported using form P46(Car).
August 5 – This is the final day of tax month 4. Tax and NICs etc for payments made in the tax month to August 5 are due for payment to the Accounts Office by August 19, or by August 22 if paid electronically.
August 17 – (August 19 is a Sunday) – For employers required to pay tax and NICs etc to the Accounts Office monthly, this is the deadline for payment to be received by the Accounts Office, unless made electronically.
August 22 – For employers required to pay tax and NICs to the Accounts Office monthly, this is the deadline for electronic payments to be cleared into the HMRC bank account. Payments through BACS must be initiated by August 20 at the latest.
Payroll FAQ's
Small Employers’ Relief Scheme
The rate at which employers can recover payments of SMP, SPP and SAP is currently 92%. This means that 92% of the statutory payments made during a tax month (6th of one month to the 5th of the next) can be deducted from all of the payments due each month or quarter to the HMRC Accounts Office.
However, special provisions apply to small businesses. Under the Small Employers’ Relief (SER) scheme, small employers can recover 100% of SMP, SPP and SAP paid out to an employee, plus a further 4½% in compensation for the employers’ NICs paid on the statutory payments. To qualify for the SER scheme, the business must have a liability for employee and employer Class 1 NICs of not more than £45,000 in the ‘qualifying year’. If the first payment of SMP, SPP or SAP to a particular employee qualifies under the SER scheme, all of the subsequent payments to that employee do, even if the payments overlap two tax years.
The ‘qualifying year’ is the last complete tax year before the first day, the Sunday, of
- the qualifying week in the case of a birth, or
- the matching week in the case of adoption.
For qualifying weeks and matching weeks starting during the 2007/08 tax year, the qualifying tax year is 2006/07.
Employers that have been operating for less than twelve months in the qualifying year can take the total employee and employer NICs in the qualifying year, divide by the number of months as an employer and multiply by 12. A new employer without a qualifying year can do the same using the NICs to date in the current year. If the result in each case is not more than £45,000, the SER scheme can be used.
In the situation where arrears of SMP, SPP or SAP have been paid to an employee due to a recalculation of average earnings as the result of
- in the case of SMP, a pay rise that takes effect at any time between the start of the relevant period used to determine average earnings and the end of the employee’s maternity leave, or
- in the case of SPP and SAP, a backdated pay rise that takes effect at any time during the relevant period,
the appropriate percentage of the arrears may be claimed after they have been paid. The recovery percentage is the rate in force at the effective date of the pay rise.
Recovery is achieved by reducing the amount of NICs due for payment to the HMRC Accounts Office by the amount to be recovered. If the amount being recovered is greater than
- the total of the NICs due, the amount of tax shown on the payslip should then be reduced
- the total of the NICs and tax due, a NIL return should be sent to the Accounts Office and the remainder recovered the following month.
No explanation has to be given for the reduction – the recovery is accounted for on the year-end P35 Annual Return.
Revenue’s latest eBrief provides a summary of the main changes included in the latest Revenue On-Line (ROS) release on 9 July 2007.
Dual agents - the facility is provided for employers to nominate two different agents or payroll firms to administer their payroll affairs. This applies to customers who wish to have one agent nominated to look after the payroll for their employees and another agent to file their Payroll returns - e.g. P30, P35 etc.
Access control by form - Using the Admin Services facility, ROS administrators can now allocate permissions to holders of sub-certificates by form type. A particular sub-certificate holder could now have permission to file P45s but not to file other forms - e.g. P30s or P35s etc.
Amended ROS Debit Instructions - ROS now provides a facility to amend an ROS Debit Instruction (RDI) to add tax types not already associated with the RDI and to amend all details of the bank account associated with an existing RDI - i.e. bank account number, bank sort code and bank account name.
New Employee Form to include P46 - This is an enhancement to the New Employee Form (P45 Part 3). Using this revised form, employers can now notify Revenue of a new employee’s commencement, regardless of whether or not the employee has provided a P45 Part 3 from the previous employer. Where possible, Revenue recommends that employers use the P45 Part 3 option to minimise delay in the issue of a new tax credit certificate for the employee.
Revenue hopes to provide access to these PAYE Online Services to practitioners for their PAYE clients before the end of 2007.
Further information:
Revenue eBrief No. 34/2007 http://www.revenue.ie/ebrief/ebrief34_07.htm
Revenue On-Line Service http://www.ros.ie/PublisherServlet/home
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