Payroll Services – Employer Bulletin

Payroll Services – Employer Bulletin

Following the latest edition of the Employer Bulletin (Issue 42) from H M Revenue & Customs, we have highlighted some areas for your attention. The bulletin is available to download from www.hmrc.gov.uk/paye/employer-bulletin/index.htm.

Real Time Information (RTI)

HMRC will be requiring real time reporting of PAYE information by the vast majority of employers from April 2013, and all employers will be routinely reporting information in real time before October 2013.

National Minimum Wage

The national minimum wage rates are increased from 1st October 2012 as follows:

The main rate for workers aged 21 and over has increased from £6.08 to £6.19

The rate for workers aged 18-20 has remained at £4.98

The rate for workers aged 16-17 has remained at £3.68

The apprentice rate has increased from £2.60 to £2.65

Week 53 Payments

In some tax years, the way dates fall mean that you will end up making one more payment than usual if your employees are paid weekly, fortnightly or four-weekly, meaning you will make a 53rd, 27th or 14th payment in the tax year.

Since an individual’s personal allowance is calculated on the basis of 52 weekly, 26 fortnightly and 13 four-weekly paydays, this may lead to an underpayment in tax.

If an employee has been advised by HMRC that they have underpaid, you should confirm to them that you have not made an error in your payroll and advise them to read the notes enclosed with the calculation or go to www.hmrc.gov.uk/incometax/p800.htm for further information.

Electronic Payment Deadline Falls On A Weekend

When an electronic payment deadline (the 22nd of each month) falls on a weekend, you need to have cleared funds in H M Revenue & Customs bank account by the Friday before. For example, in December 2012, the deadline of the 22nd falls on a Saturday, so H M Revenue & Customs require cleared funds by Friday 21st December, unless you are able to arrange a Faster Payment.

No Payment Due?

To avoid reminders, you need to tell H M Revenue & Customs that your PAYE liability for the month is nil. To do this, just complete the online form at www.hmrc.gov.uk/nilpayedue.

New Form P46 (Short)

H M Revenue & Customs have now created a single page version of form P46. If you file online, you can use this form to collect necessary information from new employees who do not have a form P45. If you are exempt from online filing, you should continue to use the 2 page P46 as you do now.

The P46 (Short) can be found at http://www.hmrc.gov.uk/forms/p46.pdf.

Important Note: This form is for internal employer use only and should not be submitted to H M Revenue & Customs.

Workplace Pensions Reform

From October 2012, large employers must automatically enrol all their eligible workers into a workplace pension scheme if they are not already in one and pay at least a minimum contribution into a scheme.

Workplace pensions law is changing and eventually over one million employers will be affected. You can find out more about the new employer duties in an introduction to workplace pension changes at http://tinyurl.com/tpr-10-hmrc.

  • Request a call back

    Your name*

    Your telephone number*