In this month’s enews we report on various issues many of which are relevant to employers. Please do get in touch if you would like more detail on any of the articles.
Real Time Information and paying HMRC
HMRC are reminding employers that they need to pay their PAYE liabilities ‘on time and in full’ although they are mindful that employers are still getting used to reporting under RTI.
The due dates for payment remain unchanged. Cheque payments therefore need to be received by the 19th of the month following the end of the tax month of deduction and cleared electronic payments by the 22nd.
Under RTI HMRC are aware of the amount of PAYE payment due as this is the:
- total amount shown on the Full Payment Submission(s) (FPS) for a tax month, including any corrections or adjustments submitted on or before the 19th of the following month
- less the amount shown on any Employer Payment Summary (EPS), also submitted on or before the 19th of the following month.
Where amended or additional EPS or FPS returns are made after the 19th of the month these will be reflected in the payment due for the following period.
HMRC also advise that employers should also use an EPS to tell them that there is no FPS to send (where no employees have been paid in the month) as, without it, HMRC will estimate what they believe is due and expect the employer to pay it in full. This estimate is known as the ‘specified charge’.
A specified charge will be issued for each month that the employer fails to report. A specified charge does not replace the need for an employer to send a FPS, as this still needs to be sent to report the actual deductions the employer has made.
Where an employer submits an FPS or EPS within seven days of the specified charge, these submissions will overwrite the specified charge. This means that an employer can pay the reported amount rather than the specified charge.
Employers can check their 2013/14 PAYE payment position by using the online PAYE Liabilities & Payments Viewer to confirm the real time submissions that HMRC have received and to check what is owed and been paid. This viewer will also include any specified charges.
Please do get in touch if you have any queries on payroll issues.
Internet link: HMRC news
Advisory fuel rates for company cars
New company car advisory fuel rates have been published to take effect from 1 June 2013. HMRC’s website states:
‘These rates apply to all journeys on or after 1 June 2013 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.’
The advisory fuel rates for journeys undertaken on or after 1 June 2013 are:
Engine size Petrol LPG 1400cc or less 15p 10p 1401cc – 2000cc 17p (18p) 12p Over 2000cc 25p (26p) 18p
Engine size Diesel 1600cc or less 12p (13p) 1601cc – 2000cc 14p (15p) Over 2000cc 18p
Please note that not all of the rates have been amended, so care must be taken to apply the correct rate. The amounts for the previous quarter are shown in brackets where the rate has been amended.
Other points to be aware of about the advisory fuel rates:
- Employers do not need a dispensation to use these rates.
- Employees driving employer provided cars are not entitled to use these rates to claim tax relief if employers reimburse them at lower rates. Such claims should be based on the actual costs incurred.
- The advisory rates are not binding where an employer can demonstrate that the cost of business travel in employer provided cars is higher than the guideline mileage rates. The higher cost would need to be agreed with HMRC under a dispensation.
If you would like to discuss your car policy, please contact us.
Internet link: HMRC advisory fuel rates
HMRC guidance for charity shops
HMRC have published new detailed guidance on claiming Gift Aid when goods are sold by, and the proceeds gifted to, charity shops.
The guidance is useful for charities and also those making donations as it details the circumstances when Gift Aid may be claimed by the charity and the position for the donor wishing to claim higher rate tax relief.
Internet link: Charity guidance
HMRC announce extension to relaxation on RTI
HMRC have announced that they will extend the temporary relaxation of the new reporting rules for businesses with fewer than 50 employees from October 2013 until April 2014 and that this relaxation will come to an end at this point.
The relaxation means that these businesses are still required to report using RTI, but are able to do so once a month, rather than each time they pay their employees. This gives small businesses that pay weekly (or more frequently), but who only run their payroll at the end of the month, some extra time to adjust to the new requirements.
HMRC’s Director General for Personal Tax, Ruth Owen, said:
‘The roll-out continues to exceed our expectations. I am delighted that 83% of SMEs and 77% of the smallest businesses are already on board. We will now write to the minority of employers who are not, to establish how we can help them meet the requirements of reporting in real time’
Please do contact us if you would like any assistance with payroll matters.
Internet link: Press release
Latest employment and pay statistics
The Office for National Statistics has announced the latest official labour market statistics. These are as follows:
- The employment rate for those aged from 16 to 64 for February to April 2013 was 71.5%, down 0.1% from November 2012 to January 2013. There were 29.76 million people in employment aged 16 and over, up 24,000 from November 2012 to January 2013.
- The unemployment rate for February to April 2013 was 7.8% of the economically active population, unchanged from November 2012 to January 2013. There were 2.51 million unemployed people, down 5,000 from November 2012 to January 2013.
- The inactivity rate for those aged from 16 to 64 for February to April 2013 was 22.4%, up 0.1% from November 2012 to January 2013. There were 8.99 million economically inactive people aged from 16 to 64, up 40,000 from November 2012 to January 2013.
- Between February to April 2012 and February to April 2013 total pay rose by 1.3% and regular pay rose by 0.9%.
Neil Carberry, CBI Director for Employment and Skills, said:
‘It’s encouraging to see businesses feel able to pay people a little more through one-off bonuses, as economic conditions appear to have brightened. The use of bonuses rather than base pay awards suggests firms are still being cautious.’
‘The labour market always lags a few months behind the economy, so it’s not surprising that overall, the picture on unemployment remains fairly flat.’
‘However, we expect to see improving economic conditions making a more positive impact on job creation later this year and it’s encouraging that once again the private sector more than offset the number of positions lost in the public sector during the first quarter.’
Internet links: ONS statistics Press release
New 0300 helpline numbers
HMRC have introduced new phone numbers for VAT, National Insurance, income tax and self assessment.
For most people the new numbers will reduce the cost of calling these helplines. The numbers are set out below for your information:
VAT
|
Line |
Old Number |
New Number |
| VAT Enquiries | 0845 010 9000 | 0300 200 3700 |
| VAT Online Services Helpdesk | 0845 010 8500 | 0300 200 3701 |
| VAT, Customs & Excise Welsh Language Line | 0845 010 0300 | 0300 200 3705 |
For those with hearing or speech impairments, the new textphone number for both VAT Enquiries and VAT Online Services Helpdesk changes from 0845 010 8500 to 0300 200 3719.
National Insurance
|
Line |
Old Number |
New Number |
| National Insurance enquiries for employees and individuals | 0845 302 1479 | 0300 200 3500 |
| National Insurance registrations | 0845 915 7006 | 0300 200 3502 |
| National Insurance deficiency enquiries | 0845 915 5996 | 0300 200 3503 |
| Newly Self-Employed Helpline | 0845 915 4515 | 0300 200 3504 |
| National Insurance enquiries for the self-employed | 0845 915 4655 | 0300 200 3505 |
| National insurance enquiries for non-UK residents | 0845 915 4811 | 0300 200 3506 |
| Contracted Out Pensions enquiries | 0845 915 0150 | 0300 200 3507 |
Income Tax and Self Assessment
|
Line |
Old Number |
New Number |
| Income Tax enquiries for individuals, pensioners and employees | 0845 300 0627 | 0300 200 3300 |
| Agent Dedicated Line | 0845 366 7855 | 0300 200 3311 |
| Tax back on bank and building society interest:Savings Helpline
The National Claims Office |
0845 980 0645 | 0300 200 3312 |
| 0845 366 7850 | 0300 200 3313 | |
| Self Assessment textphone service | 0845 302 1408 | 0300 200 3319 |
HMRC have confirmed that taxpayers may still use the 0845 numbers for about the next 18 months.
Other 0845 numbers will change in the coming months as part of a rolling program to give taxpayers cheaper access to HMRC helplines.
Internet link: HMRC news
Download Basic PAYE Tools
HMRC have updated their Basic PAYE Tools which is a software package designed to help those employers operating their own payroll.
The Basic PAYE Tools can be used by employers with nine or fewer employees. The tools calculate the tax and National Insurance Contributions for employees and enable the employer to report the necessary payroll information to HMRC under RTI.
HMRC are advising users to ensure they download the latest version of the tools and any updates. For more information visit the link below.
Internet link: HMRC Basic PAYE Tools