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National Minimum Wage & Sleep-ins

 

Not sure how the National Minimum Wage applies to ‘Sleep-in shifts’?  HM Revenue and Customs has produced an informative ‘webinar’ available on YouTube and below:

 

Updated guidance on Minimum Wage and Working Wage

The Department for Business, Energy & Industrial Strategy has produced new guidance on the National Minimum Wage and the National Living Wage.

 

The updayed guidance, entitled “National Minimum Wage and National Living Wage – Calculating the minimum wage” includes updated information on “Sleep-in” shifts to reflect recent court rulings.

 

You can download the new guidance (.pdf) here.

Pension Regulator prosecutes recruitment agency

The Pensions Regulator has prosecuted a Derby based business, the Directors and senior staff for offences under the Computer Misuse Act. The seven individuals all worked together to opt workers out of the NEST pension scheme, thus depriving workers of the recruitment agency of pension scheme membership.

 
Derby Crown Court, Judge Nirmal Shant QC told the defendants their “co-ordinated effort” had been an “attempt to steal a march” on their competitors and that “This amounted to a deliberate subversion of the automatic enrolment process. It was a deliberate attack on the integrity of the electronic systems of NEST.”

 
Such was the severity of the offences, that the company was fined £200,000 plus nearly £61,000 in costs. In addition, individuals were sentenced to prison sentences (suspended), community service, overnight curfews and costs.

 

Further information avaialable here.

 

 

Free training on sick pay and leave

Would you like to attend a free webinar providing training on sick pay and sick leave?
 
HMRC and ACAS are running a webinar entitled “Managing Sick Leave and Pay“. There will be a broef summary of Statutory Sick Pay entitlement, also how to manage sick leave and the impact it has on employment relations in the workplace.
 
You will be able to ask questions using the on-screen text box.
 
Friday 1 June, 9.00am to 10.00am
Tuesday 12 June, 3.00pm to 4.00pm
 
You can register, or find more information here

Bank Charges

 

If an employer reimburses or pays employees’ bank charges this counts as earnings (and is subject to income tax and National Insurance) unless the bank charges are the employers fault (eg because the employer paid the wages late). If the bank charges were the employers fault, there is no need to report the reimbursement to HMRC.

 

Further information at www.gov.uk/expenses-and-benefits-bank-charges

 

Technical information from HMRC available for income tax and National Insurance

New Student Loan Repayments rates this month

A reminder that one of the many changes this month is a change to the payroll repayment rates for those with Student Loans.

 
 
For borrowers repaying on Plan 1 – if earnings in the week or month exceed the highest amount of earnings shown in the tables you’ll need to deduct the ‘pay period threshold’ from total earnings in the week or month. Do this by:
       deducting £352.50 from weekly earnings for weekly paid employees, or deducting £1,527.50 from monthly earnings for monthly paid employees
       multiply the result (the excess) by 9% (0.09), round down this figure to the nearest whole pound.

 
For borrowers repaying on Plan 2 – if earnings in the week or month exceed the highest amount of earnings shown in the tables you’ll need to deduct the ‘pay period threshold’ from total earnings in the week or month. Do this by:
       deducting £480.76 from weekly earnings for weekly paid employees, or deducting £2,083.33 from monthly earnings for monthly paid employees
       multiply the result (the excess) by 9% (0.09), round down this figure to the nearest whole pound.

 
 

The new rates and further information is on the HMRC website

Changes to Pay In Lieu of Notice

Extract from the HMRC Employer Bulletin, April 2018 [link]

Payments in lieu of notice

Changes to the taxation of non-contractual payments in lieu of notice (PILONs) came into effect from 6 April 2018. All payments in lieu of notice on, or after 6 April 2018 are chargeable to income tax and Class 1 National Insurance Contributions (NICs), whether or not they are contractual payments. Detailed guidance can be found in the Employment Income Manual.

Accordingly, any Pay In Lieu of Notice payments processed by Payroll Check will always be subject to both income tax and National Insurance.

 

 

Key Payroll Dates

Some key payroll dates to note …

31st May 2018Statutory deadline for issuing P60s

6th July 2018Statutory deadline for P11Ds

19th / 22nd July 2018Payment of Class 1A NIC due

Happy New Tax Year!

Happy New Year!

A few links to help you with the start of the 2018/2019 tax year …

 
New Income Tax, National Insurance, SSP, SMP etc rates
https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2018-to-2019

 
P9X (tax code changes 6 April 2018)
https://www.gov.uk/government/publications/p9x-tax-codes

 
National Minimum Wage and National Living Wage
http://www.acas.org.uk/nmw

 
Changes to Pension Contribution rates
http://www.thepensionsregulator.gov.uk/minimum-contribution-increases-planned-by-law-phasing.aspx

 

Fake HMRC emails – be warned!

HM Revenue and Customs has issued a timely reminder about the potential for emails pretending to have been issued by HMRC.

HMRC will never notify a tax rebate by email or text. HMRC do not ask for personal or payment information by email or text.

If you have the slightest doubt that a HMRC email or text is fake, the advice is:
– do not open attachments, they could contain a virus
– do not click on links, they could take you to a fake HMRC site
– do not disclose personal/confidential information
– forward suspicious HMRC text messages to 60599 (charged at your network rate)
– forward suspicious emails to the HMRC phishing team at: phishing@hmrc.gsi.gov.uk

Further information at https://taxagents.blog.gov.uk/2018/04/05/spoof-hmrc-communications-tax-agent-blog and https://www.gov.uk/topic/dealing-with-hmrc/phishing-scams