Real Time Information
Real Time Information (RTI) is here! It will completely change the way employers and pension providers send HMRC employee information. Under Real Time Information (RTI) employers and pension providers will tell HMRC about tax, NICs and other deductions when or before the payments are made, rather than at the end of each tax year.
HMRC State that RTI will:
Employers and pension providers will send this information to HMRC Online.
For further information visit www.hmrc.gov.uk/rti/index.htm
Increase in the National Minimum Wage Rate (all UK)
From 1 October 2012, new national minimum wage (NMW) rates will come into force.
The NMW applies to nearly all workers and sets hourly rates below which you must not allow pay to fall.
For pay reference periods (PRPs) beginning on or after 1 October 2012, you will have to pay all eligible workers the following:
NMW for apprentices
The apprentice rate, for apprentices under 19 or 19 and over and in the first year of their apprenticeship, will increase to £2.65 an hour.
Currently such apprentices are not entitled to the NMW.
To qualify to receive the NMW, the apprentice must either:
To find out more visit:
National Payroll Week 2011
It's National Payroll Week this week and The Paycompany is celebrating it by holding a coffee morning on Friday 9th September.
The office has been decorated with posters and balloons provided by the Chartered Institute of Payroll Professionals.
We would love to see you pop in anytime between 10 and 12 o’clock and have a chat over coffee and try one of our delicious chocolate cupcakes.
PAYE tax code applied to payments to ex-employees after form P45 issued
From 6 April 2011 the default tax code employers are required to operate on a payment made to an ex-employee after their P45 has been issued has changed from code BR (20% Basic Rate) to 0T (zero T) on a non-cumulative (Week 1/ Month 1) basis.
Under the Basic Rate tax code significant underpayments arose for many higher (40%) and additional (50%) rate taxpayers and presented HMRC with compliance issues and customers with underpayments at a later date.
Under code 0T W1/M1, tax is recovered at the basic, higher and additional rates of tax as appropriate. Where the additional payment is being made outside of the normal payroll run the tax code operated on the additional payment will not result in the right amount of tax being deducted in all cases. However, code 0T does in general bring the individual closer to the correct tax due figure when the year as a whole is reconciled, and protects both the exchequer and the individual from potentially large underpayments at the end of the tax year.
Automatic Enrolment , Pension Personal Accounts