HMRC Update SAFE Computing Conference. 28 November Phil Nilson Employer Engagement Team PT CPP HMRC

Transcription

1 HMRC Update SAFE Computing Conference 28 November 2014 Phil Nilson Employer Engagement Team PT CPP HMRC

2 HMRC Update Agenda: Now! Soon! Later! 2

3 Now! Protective marking Protect HMRC NL Standard 15/01/2014 3

4 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 4

5 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: 5

6 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: 6

7 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 7

8 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 In future, the vision is that all registered PAYE customers will be able to access Annual Tax Summaries online 8

9 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 9

10 PAYE for Employees: a new digital service Introduced from the end of October and supports the governmentwide 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:

11 Soon! Protective marking Protect HMRC NL Standard 15/01/

12 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 mailbox.zeroemissionvans@hmrc.gsi.gov.uk Employer name Employer PAYE reference Employee name Employee National Insurance number Deadline is 12 December

13 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: New Employers Helpline: See the full list in October s Employer Bulletin 13

14 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 14

15 Later! Protective marking Protect HMRC NL Standard 15/01/

16 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 16

17 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 17

18 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 18

19 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 19

20 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 20

21 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 Then work out the correct tax code and starter declaration using HMRC s new online tool at 21

22 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 22

23 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 23

24 Finally. Any questions? 24

25 Thank you 25