Transcript What's new for employers 2009
What’s new for employers 2011
Business Education & Support Team
Contents • • • • • • • • Tax allowances.
National Insurance rates.
Statutory Payment rates.
Additional Statutory Paternity Pay.
Regional Employer NICs Holiday for New Businesses.
Employer supported child care.
Late payment Penalties.
Miscellaneous.
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Tax allowances 2011-12 • • Personal allowance £ 7475.
Tax code 747L. For P9X www.businesslink.gov.uk/payeformsandpublications What’s New for employers V2
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Tax bandwidths 2011-12 • • • Basic Rate 20% Higher Rate 40% Additional Rate 50% £1 to £35,000 £35,001 to £150,000 £150,001 and above.
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Paying tax at the 50% rate in 2010-11 • • • • 50% rate introduced from 6 April 2010 for taxpayers with taxable income of more than £150,000.
Right amount of tax should be deducted if income is from one source only….
….but if from two or more sources, an underpayment is likely to arise.
HMRC is writing to such taxpayers warning them of the potential underpayment; letter will be headed ‘Paying tax at the 50% rate in 2010 2011’.
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New tax code • From 2011- 12 Code D1.
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Coding changes - employees • From 2011- 12 Code 0T week1/month1.
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Coding changes - pensions • From 2011- 12 Code 0T week1/month1.
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National Insurance limits from 6 April 2011 £ per week Lower Earnings Limit Primary Threshold Secondary Threshold Upper Accrual Point Upper Earnings Limit Tax year 2010-11 £97 £110 £110 £770 £844 Tax year 2011-12 £102 £139 £136 £770 £817 What’s New for employers V2
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National Insurance Contributions (NIC) rates from 6 April 2011 Class 1 Employee NIC Tax year 2010-11 11% Tax year 2011-12 12% Class 1 Employer NIC Class 1A Employer NIC Class 1B Employer NIC Additional NIC 12.8% 12.8% 12.8% 1% 13.8% 13.8% 13.8% 2% What’s New for employers V2
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Abolition of Contracted Out Schemes Contracted Out Money Purchased Schemes (COMP) schemes, Appropriate Personal Pension (APP) Schemes and APP Stakeholder Schemes: • • • All close from 6 April 2012.
NI Category letters F,G,H,K,V and S cease to be valid. All other schemes are not affected.
For more information go to: www.dwp.gov.uk/docs/emp-contracting-out-factsheet-pdf What’s New for employers V2
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Statutory Payment Rates • Statutory Sick Pay £81.60.
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Statutory Payment Rates • • Statutory Maternity Pay (Standard rate) Statutory Adoption Pay £128.73. £128.73.
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Statutory Paternity Pay • • Ordinary Statutory Paternity Pay Additional Statutory Paternity Pay £128.73.
£128.73.
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Small employer compensation • Statutory Maternity Pay, Ordinary Statutory Paternity Pay, Additional Statutory Paternity Pay and Statutory Adoption Pay Small employers relief (if applicable) 3% What’s New for employers V2
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Employer supported childcare – scheme conditions • No longer need to be generally available to all.
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Employer supported childcare – tax relief • • • • Changes for employees joining after 6 April 2011.
Employer will need to carry out a basic earnings assessment.
Equalizes the tax saving available for all employees regardless of the rate of tax they pay.
Existing scheme members are unaffected by the changes.
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Plastic National Insurance number (NINo) cards • HMRC has ceased sending out replacement cards; a letter is sent instead.
• • We expect to withdraw plastic cards around October 2011.
If an employee can’t produce a NINO, go to: www.hmrc.gov.uk/forms/ca5403.pdf(employee) or www.hmrc.gov.uk/forms/ca6855.pdf(employer) What’s New for employers V2
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Equalisation of State Pension age (SPa) • • • • From 6 April 2010 the age at which women reach SPa will gradually rise to become the same as it is for men – 65.
The change will be phased in between April 2010 and April 2020.
All women born between 6 April 1950 and 5 April 1955 are affected.
All women born between 6 April 1955 and 5 April 1959 will reach SPa at age 65.
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Equalisation of State Pension age (SPa) For further information, go to: Employers www.businesslink.gov.uk/payeformsandpublications www.hmrc.gov.uk/paye/employees/changes/pension-age.htm
Employees www.direct.gov.uk/en/Pensionsandretirementplanning/ StatePension/DG_4017919 What’s New for employers V2
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Regional employer NICs holiday for new business • • Available to eligible new businesses which start up in the period 22 June 2010 to 5 September 2013.
The new business must make an application to take part in the scheme.
For more information www.businesslink.gov.uk/nicsholiday What’s New for employers V2
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National Minimum Wage • Changes effective from 1 January 2011: Travel and subsistence expenses that are eligible for tax relief will not count towards NMW pay.
• Further details can be found at: www.bis.gov.uk/nmw What’s New for employers V2
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Basic PAYE Tools – formerly Employer CD-ROM • • CD-ROM updates from November 2010.
From February 2011 – Basic PAYE Tools.
CD-ROM November update www.hmrc.gov.uk/employers/cdrom Basic PAYE Tools www.businesslink.gov.uk/basicpayetool What’s New for employers V2
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Basic PAYE Tools • If you used the Employer CD-Rom during 2010-2011, in order to successfully transfer data across to the new tools, you must download the latest update to the 2010 CD-ROM.
Go to: www.hmrc.gov.uk/employers/cdrom • Technical specifications required to run the Basic PAYE Tools can be found in the Online Employer Bulletin which was published on 14 February.
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Employer email alert • Go to www.businesslink.gov.uk/hmrcemployeremailalerts • Each registration will last for up to one year, then we will email you to re-register.
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Employer email alert • • • • You will need: employer PAYE reference employer name an email address phone number and contact name.
NB: This is not the same as registering for HMRC’s Online Services.
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Reminder for employers - online filing in year forms • From 6 April 2011 Virtually all employers must send their Starter and Leaver forms online.
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Employer Annual Return • Electronic P60.
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Employer Annual Return • Is a NIL Return or no Return required?
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Employees - subsistence expenses
The benchmark scale rates that apply from 6 April 2009 are as follows: Description Amount (up to)
Breakfast rate One meal (5 hour) rate Two meal (10 hour) rate Late evening meal rate £5 £5 £10 £15 What’s New for employers V2
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Employees - changing company car From April 2011, we will once again accept online notifications of company car changes on form P46(Car).
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Company cars - advisory fuel rates for company cars from 1 December 2010 Engine size Petrol, hybrid petrol and electric Diesel LPG
1400cc or less 1401cc to 2000cc 13 pence 15 pence 12 pence 12 pence 9 pence 10 pence over 2000cc 21 pence 15 pence 15 pence What’s New for employers V2
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Company cars - advisory fuel rates for company cars from 1 March 2011 Engine size Petrol, hybrid petrol and electric Diesel LPG
1400cc or less 1401cc to 2000cc 14 pence 16 pence 13 pence 13 pence 10 pence 12 pence over 2000cc 23 pence 16 pence 17 pence What’s New for employers V2
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Changing the way HMRC handles incoming mail • • • We intend to scan incoming post. Some original documents will be returned.
Others will be securely destroyed unless you ask for their returned within 40 days of receipt. What’s New for employers V2
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HMRC launches consultation • • • Real Time Information (RTI).
Improving the operation of PAYE.
The consultation will run until 28 February 2011.
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Payslip booklet now called payment booklet Could you do without yours?
For more information www.businesslink.gov.uk/payingpaye What’s New for employers V2
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New late payment penalties for PAYE • The new penalties will apply to any employer or contractor who does not pay on time and in full. • • • •
Tips
Check what day of the week the 22nd falls on.
Check with your bank how long it takes payments to clear.
Unless paying by CHAPS, put a reminder in your diary/calendar at least 4 working days before this deadline.
Don’t leave it to the last minute.
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Business Payment Support Line If you have a bill you can’t pay • Contact HMRC Business Payment Support Line • 0845 302 1435.
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Miscellaneous • VAT The standard rate from 4 January 2011 is 20%.
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VAT Online Filing 2012 • • Currently you have to file your VAT returns online and pay electronically if: You registered your business for VAT after 1 April 2010.
Your annual VAT inclusive turnover is more than £100,000.
From 1 April 2012 this requirement will apply to ALL businesses.
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EmployerTalk Bitesize • • • • • 16 February 2 March 10 March 16 March 22 March Watford Doncaster Burnley Chester Aberdeen.
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Anyone self-employed?
Changes from April 2011 • • Payments for your Class 2 National Insurance contributions will become due on 31 January and 31 July the same as a Self Assessment tax bill. What’s New for employers V2
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Capital Allowances from 1 April 2012 • • • Annual Investment Allowance Writing Down Allowance Special rate £25,000 18% 8% What’s New for employers V2
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Limited Companies • Registering for HMRC’s Online Services.
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Tax Help factsheets For more information www.businesslink.gov.uk/taxhelp What’s New for employers V2
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Further help and guidance • • • • • • Business Link www.businesslink.gov.uk/taxhelp Basic PAYE Tools www.businesslink.gov.uk/basicpayetool New Employer Helpline 0845 6070 143 Employer Orderline Business Education & Support Team 0845 764 6406 0845 603 2691 Agent Account Managers www.hmrc.gov.uk/agents/aam.htm
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Contacting HMRC • • There is now just one number for employees to ring for help with tax enquiries 08453 000 627.
And only one for employers 08457 143 143.
• • • And we have made changes to our Contact Centre opening hours: No Sunday opening.
Monday – Friday: 8am to 8pm.
Saturday: 8am to 4pm.
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Today we have covered • • • • • • • • Tax allowances.
NIC rates.
Statutory Payment rates.
Additional Statutory Paternity Pay.
Regional Employer NICs Holiday for New Businesses.
Employer supported child care.
New Penalties.
Miscellaneous.
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Evaluation And finally, to assist us in improving our workshops would you please complete the evaluation sheet.
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