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| Payroll Staff Wanted |
Client in Camberley London needs up to 10 payroll people at all levels, for new team.
Client in central Birmingham needs one new member to join their team.
If you can help at all please contact Reg Ruffle at reg@hrdps.co.uk or 01295 225500.
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In-House - Special Offer
During June, July and August 2007 we are offering some serious discounts for any In-house course:
Special Price of £797 per day
+ £25 per head (normally £50)
+ Tutor Expenses and VAT
Telephone: 01295 225500 |
Last Minute Special Offers
Below are some reduced price courses only available to our newsletter readers:
*Prices exclude VAT.
Telephone: 01295 225500
News Items – at 30th May 2007
Sorry no news items this week - see below for FAQ's
Payroll deadlines during the next month
June 5 – This is the final day of tax month 2. Tax and NICs etc for payments made in the tax month to June 5 are due for payment to the Accounts Office by June 19, or by June 22 if paid electronically.
June 19 – 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.
June 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 June 20 at the latest.
Payroll FAQ's
Market Value
The concept of “market value” appear throughout the Benefits Code and related reporting rules, in connection with assets transferred, assets made available, living accommodation, classic cars, securities and shares, and readily convertible assets. The same definition, i.e. “the price it might reasonably have been expected to fetch on a sale in the open market at that time” applies in all of these different situations.
Market value is also significant in the context of P9D reporting. With the exception of vouchers, credit cards and living accommodation, the provision of benefits to employees who have an earnings rate of less than £8,500 for a tax year is not reportable under the rules of the Benefit Code. However, if a benefit is provided that has “money’s worth”, i.e. it can be turned into cash in the hands of the employee, it must be reported on form P9D. The value of the benefit for reporting purposes is its “market value”, or second-hand value.
It must be noted that the market value of an asset is not necessarily the same as the price paid for the employer to acquire the asset. The statutory definition above refers to the market value when it was “first applied in the provision of any benefit”, not the market value “on the day of purchase”. Compare the following examples:
- the market value of a computer that is given to an employee to use a week after it was purchased may be considerably lower than its purchase price
- the market value of a computer that is purchased by an employee at a retail store using the employer’s credit card and who starts to use it immediately is the price paid for the computer
- the market value of a computer that is built by a computer manufacturer and given to an employee to use is the price that the computer may be obtained on the open market, probably somewhat less than the manufacturer’s recommended retail price. Note that this is more than it cost the company to make the computer.
Other values that are sometimes used by employers to determine market value but that are not reliable guides are:
- the highest amount bid by employees in an in-house auction for unused company property
- the book value of an item in the company's accounts.
There are no rules about where an employer should obtain the “market value” of any particular item. The following suggestions may be useful but, in the event of an HMRC compliance audit, the employer should be able to justify in some sensible manner the source of the market value figure that was used to determine the reportable value of a benefit.
- Exchange & Mart magazine, or website at www.exchangeandmart.co.uk
- specialist magazines and websites for the type of asset in question, e.g. www.whatcar.com and www.carsource.co.uk
- local and national newspapers and magazines with classified sections
- local second-hand dealers for the type of asset in question
- the prices at which items have sold on Ebay, at www.ebay.co.uk
- general web search for “second hand” in the UK
- local and national estate agents
- Glass’s Guide, at www.glass.co.uk.
Readers Newsletter Forum
If you have any HR or payroll related questions that you think other people who receive this newsletter will be able to answer, please email us and we will add your question to our newsletter.
An area dedicated to readers of the newsletter to enable you to:
- share your comments or views on anything in the newsletter
- to ask a question of other readers, or the tutor team
- to relate a humorous event or story related to HR or payroll
- to provide a useful tip, or seek advice on a software problem
- or maybe to simply provide recruitment information
contact: daniel.ruffle@hrdps.co.uk or reg@hrdps.co.uk
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