hmrc update sap users group conference 24 november 2014 · pdf filehmrc update sap users group...
TRANSCRIPT
HMRC Update SAP Users Group Conference
24 November 2014
Phil Nilson
Employer Engagement Team
PT CPP
HMRC
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HMRC Update
Agenda:
• Now!
• Soon!
• Later!
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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
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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
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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
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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’
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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
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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
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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
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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