HMRC Update SAP Users Group Conference 24 November 2014 · PDF fileHMRC Update SAP Users Group Conference 24 November 2014 ... • Tell us if things have changed –eg payroll

HMRC Update SAP Users Group Conference

24 November 2014

Phil Nilson

Employer Engagement Team

PT CPP

HMRC

Protective marking – Protect HMRC NL Standard | 15/01/2014

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HMRC Update

Agenda:

• Now!

• Soon!

• Later!

Protective marking – Protect

Now!

HMRC NL Standard | 15/01/2014

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RTI: Automated in-year late filing penalties

• RTI is now regarded as ‘business as usual’

• Data you send is being used successfully for:

• Universal Credit claims

• Tax Credits renewals

• End of Year reconciliation

• Automated in-year penalties introduced:

• from 6 October this year for those who employ 50 or more

• from 6 March 2015 for those with fewer than 50 employees

• We are sending defaulting employers Generic Notification Service (GNS) messages

• Penalty notices will be sent by post each quarter

• Accompanied by a new online appeals process


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Automated in-year late filing penalties

• Remember:

• The normal deadline for submissions is ‘on or before’ the day you pay employees

• If a payment qualifies for an exception, use the ‘Late Reporting Reason’

• Tell us if things have changed – eg payroll frequency, scheme has ceased, etc

• Further information is at:

• www.gov.uk/running-payroll/reporting-to-hmrc

• www.gov.uk/running-payroll/fps-after-payday

http://www.gov.uk/running-payroll/reporting-to-hmrc

http://www.gov.uk/running-payroll/fps-after-payday


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Automated late-payment penalties

• Introduced from April 2015

• To avoid:

• Pay on time!

• Pay the amount that’s due!

• Use the correct reference

• If you can’t pay, contact HMRC before the due date

• Further information is at:

• http://www.hmrc.gov.uk/payinghmrc/paye.htm

http://www.hmrc.gov.uk/payinghmrc/paye.htm


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Employer Payment Summary improvements

From October 2014:

• New data item 167 introduced: allows employers to identify against which tax month an EPS should be allocated

• Employers can now report ‘Periods of Inactivity’ up to a maximum of 12 months – increased from 6 months

• Both changes introduced as a result of listening to employers and payroll software developers


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Annual Tax Summaries

• During November and December, 16 million PAYE customers will be sent a new Annual Tax Summary

• They are for information only and show:

• taxable income

• how tax and NICs are calculated

• how the government uses taxpayers’ tax and NICs

• If any of your employees ask you for more information, refer them to https://www.gov.uk/annual-tax-summary

• In future, the vision is that all registered PAYE customers will be able to access Annual Tax Summaries online

https://www.gov.uk/annual-tax-summary


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PAYE guidance

• All of HMRC’s PAYE guidance has now moved to GOV.UK

• You can access PAYE Online services via GOV.UK

• If you have any feedback, please use the links at the bottom of the page


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PAYE for Employees: a new digital service

• Introduced from the end of October and supports the government-wide ‘digital by default’ agenda

• Allows registered individuals to go online to view, amend and add to details about their company car and car fuel benefits…

• …but some larger employers may decide to payroll their benefits

• The service will be extended between now and March 2015

• To learn more, go to GOV.UK and search ‘HMRC digital strategy: 2014’


Soon!


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Van Benefit Charge: Zero Emission Vans

• It was announced in Budget 2014 that the current exemption is to be phased out over the 5 years between April 2015 and April 2020

• If you have employees who drive zero emission vans and who have private use of these vehicles, please send the following information to [email protected]

• Employer name

• Employer PAYE reference

• Employee name

• Employee National Insurance number

• Deadline is 12 December 2014

mailto:[email protected]


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HMRC Helpline contact numbers

• HMRC moved its helplines to 0300/0345 numbers in September 2013

• In the meantime, we continued to deal with calls made to the old 0845 numbers

• That service will be withdrawn in December

• Employers Helpline: 0300 200 3200

• New Employers’ Helpline: 0300 200 3211

• See the full list in October’s Employer Bulletin


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Employer-provided BiKs and expenses

• Consultation exercises on the following have now ended

• Abolition of the £8,500 threshold

• Introduction of a Trivial Benefits exemption

• Introduction of real-time collection of tax on Benefits in Kind and expenses (Voluntary

Payrolling)

• Introduction of an exemption for paid or reimbursed expenses (which also replace

Dispensations)

• Thank you for your contributions…

• …further announcements will be made in the Autumn Statement


Later!


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Recording Scheme Contracted-out Numbers

• From April 2014 employers must record SCONs on FPS’ where NICs are paid under category letters: D, E, L, N or O (and, for the tax year 2015 to 2016 only, letters I, K and V for under 21s who are in contracted-out employment)

• The SCON can be found on the Employer’s Contracting-out certificate – or by contacting your Pension Scheme Provider

• In April 2014 we introduced a temporary SCON to help those employers who did not know the correct one…

• …that facility will be withdrawn at the end of March 2015 and employers must use the correct SCON


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NICs for employees aged under 21

From 6 April 2015:

• Employers do not need to pay secondary contributions for employees under the age of 21

• The rate will be 0% on earnings up to the new ‘Upper Secondary Threshold’ which – for the tax year starting 6 April – will be the same as the Upper Earnings Limit

• Secondary NICs remain payable on earnings above this threshold

• Class 1A and 1B NICs are not affected


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NICs for employees aged under 21

From 6 April 2015, there will be 7 new category letters for employees under 21:

• M – Not contracted-out standard rate

• Z – Not contracted-out deferred rate

• Y – Mariners not contracted-out rate

• P – Mariners not contracted-out deferred rate

• V – Mariners Contracted-out Salary Related rate

• I – Contracted-out Salary Related rate

• K – Contracted-out Salary Related deferred rate


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Income Contingent Repayment Student Loans

• From 6 April 2015 the ICR Student Loan threshold will rise from £16,910 to £17,335

• And please note: even though the rate of NICs for under 21s is reducing to ‘0%’, ICR Student Loan repayments are still due on earnings/income as usual


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Understanding your employee’s tax code

• Currently for K codes only, the law states that deductions cannot exceed 50% of income

• HMRC applies that rule administratively to all codes

• From 6 April 2015, the law changes to apply the limit to all tax codes

• Covers suffix codes, prefix codes and letter only codes


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Tax codes for new employees – a reminder

• Incorrect tax codes can lead to employees paying the wrong amount of tax is due – and can lead to contact from HMRC

• Ensure you get employees on the right tax code and starter declaration first time:

• Extract the relevant information from the employee’s P45

• If no P45 is produced, get you employee to complete HMRC’s ‘New Starter Checklist’. Find

this at www.gov.uk/new-employee/employee-information

• Then work out the correct tax code and starter declaration using HMRC’s new online tool at

www.gov.uk/new-employee-tax-code

http://www.gov.uk/new-employee/employee-information

http://www.gov.uk/new-employee-tax-code


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Transferable Allowance for married couples/civil partners

• Announced in the 2013 Autumn Statement

• From the tax year beginning 6 April 2015, a spouse or civil partner not liable to income tax can transfer £1,050 of the personal allowance to their spouse/civil partner – provided said partner is not liable to income tax above the basic rate

• The transferor’s PA will be reduced by £1,050; the recipient will be entitled to reduced income tax liability up to £210

• Look out for 2 new suffixes for those currently on an ‘L’ suffix code:

• ‘N’ for the transferor

• ‘M’ for the recipient


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Scottish Rate of Income Tax (SRIT)

• Introduced from April 2016

• Paid by Scottish Taxpayers

• Calculated by reducing UK basic, higher and additional rates by 10p in the pound – then the Scottish Parliament will set a single rate to be added to the reduced rates

• Scottish rate for tax year starting 6 April 2016 expected to be announced in draft budget in autumn 2015

• HMRC will contact individuals and employers


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Finally….

Any questions?


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Thank you

Documents

HMRC Update SAP Users Group Conference 24 November 2014 · PDF fileHMRC Update SAP Users Group Conference 24 November 2014 ... • Tell us if things have changed –eg payroll