Monthly Archives: June 2013

Download Basic PAYE Tools

HMRC have updated their Basic PAYE Tools which is a software package designed to help those employers operating their own payroll.

The Basic PAYE Tools can be used by employers with nine or fewer employees. The tools calculate the tax and National Insurance Contributions for employees and enable the employer to report the necessary payroll information to HMRC under RTI.

HMRC are advising users to ensure they download the latest version of the tools and any updates. For more information visit the link below.

Internet link: HMRC Basic PAYE Tools

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New 0300 helpline numbers

HMRC have introduced new phone numbers for VAT, National Insurance, income tax and self assessment.

For most people the new numbers will reduce the cost of calling these helplines. The numbers are set out below for your information:

 

VAT

Line

Old Number

New Number

VAT Enquiries

0845 010 9000

0300 200 3700

VAT Online Services Helpdesk

0845 010 8500

0300 200 3701

VAT, Customs & Excise Welsh Language Line

0845 010 0300

0300 200 3705

For those with hearing or speech impairments, the new textphone number for both VAT Enquiries and VAT Online Services Helpdesk changes from 0845 010 8500 to 0300 200 3719.

 National Insurance

Line

Old Number

New Number

National Insurance enquiries for employees and individuals

0845 302 1479

0300 200 3500

National Insurance registrations

0845 915 7006

0300 200 3502

National Insurance deficiency enquiries

0845 915 5996

0300 200 3503

Newly Self-Employed Helpline

0845 915 4515

0300 200 3504

National Insurance enquiries for the self-employed

0845 915 4655

0300 200 3505

National insurance enquiries for non-UK residents

0845 915 4811

0300 200 3506

Contracted Out Pensions enquiries

0845 915 0150

0300 200 3507

 

Income Tax and Self Assessment

Line

Old Number

New Number

Income Tax enquiries for individuals, pensioners and employees

0845 300 0627

0300 200 3300

Agent Dedicated Line

0845 366 7855

0300 200 3311

Tax back on bank and building society interest:
Savings Helpline

0845 980 0645

0300 200 3312

The National Claims Office

0845 366 7850

0300 200 3313

Self Assessment textphone service

0845 302 1408

0300 200 3319

HMRC have confirmed that taxpayers may still use the 0845 numbers for about the next 18 months.

Other 0845 numbers will change in the coming months as part of a rolling program to give taxpayers cheaper access to HMRC helplines.

Internet link: HMRC news

Latest employment and pay statistics

The Office for National Statistics has announced the latest official labour market statistics. These are as follows:

  • The employment rate for those aged from 16 to 64 for February to April 2013 was 71.5%, down 0.1% from November 2012 to January 2013. There were 29.76 million people in employment aged 16 and over, up 24,000 from November 2012 to January 2013.
  • The unemployment rate for February to April 2013 was 7.8% of the economically active population, unchanged from November 2012 to January 2013. There were 2.51 million unemployed people, down 5,000 from November 2012 to January 2013.
  • The inactivity rate for those aged from 16 to 64 for February to April 2013 was 22.4%, up 0.1% from November 2012 to January 2013. There were 8.99 million economically inactive people aged from 16 to 64, up 40,000 from November 2012 to January 2013.
  • Between February to April 2012 and February to April 2013 total pay rose by 1.3% and regular pay rose by 0.9%.

Neil Carberry, CBI Director for Employment and Skills, said:

‘It’s encouraging to see businesses feel able to pay people a little more through one-off bonuses, as economic conditions appear to have brightened. The use of bonuses rather than base pay awards suggests firms are still being cautious.’

‘The labour market always lags a few months behind the economy, so it’s not surprising that overall, the picture on unemployment remains fairly flat.’

‘However, we expect to see improving economic conditions making a more positive impact on job creation later this year and it’s encouraging that once again the private sector more than offset the number of positions lost in the public sector during the first quarter.’

Internet links: ONS statistics  Press release

HMRC announce extension to relaxation on RTI

HMRC have announced that they will extend the temporary relaxation of the new reporting rules for businesses with fewer than 50 employees from October 2013 until April 2014 and that this relaxation will come to an end at this point.

The relaxation means that these businesses are still required to report using RTI, but are able to do so once a month, rather than each time they pay their employees. This gives small businesses that pay weekly (or more frequently), but who only run their payroll at the end of the month, some extra time to adjust to the new requirements.

HMRC’s Director General for Personal Tax, Ruth Owen, said:

‘The roll-out continues to exceed our expectations. I am delighted that 83% of SMEs and 77% of the smallest businesses are already on board. We will now write to the minority of employers who are not, to establish how we can help them meet the requirements of reporting in real time’

Please do contact us if you would like any assistance with payroll matters.

Internet link: Press release

Advisory fuel rates for company cars

New company car advisory fuel rates have been published to take effect from 1 June 2013. HMRC’s website states:

‘These rates apply to all journeys on or after 1 June 2013 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.’

The advisory fuel rates for journeys undertaken on or after 1 June 2013 are:

Engine size

Petrol

LPG

1400cc or less

15p

10p

1401cc – 2000cc

17p (18p)

12p

Over 2000cc

25p (26p)

18p

Engine size

Diesel

1600cc or less

12p (13p)

1601cc – 2000cc

14p (15p)

Over 2000cc

18p

Please note that not all of the rates have been amended, so care must be taken to apply the correct rate. The amounts for the previous quarter are shown in brackets where the rate has been amended.

Other points to be aware of about the advisory fuel rates:

  • Employers do not need a dispensation to use these rates.
  • Employees driving employer provided cars are not entitled to use these rates to claim tax relief if employers reimburse them at lower rates. Such claims should be based on the actual costs incurred.
  • The advisory rates are not binding where an employer can demonstrate that the cost of business travel in employer provided cars is higher than the guideline mileage rates. The higher cost would need to be agreed with HMRC under a dispensation.

If you would like to discuss your car policy, please contact us.

Internet link: HMRC advisory fuel rates

Real Time Information and paying HMRC

HMRC are reminding employers that they need to pay their PAYE liabilities ‘on time and in full’ although they are mindful that employers are still getting used to reporting under RTI.

The due dates for payment remain unchanged. Cheque payments therefore need to be received by the 19th of the month following the end of the tax month of deduction and cleared electronic payments by the 22nd.

Under RTI HMRC are aware of the amount of PAYE payment due as this is the:

  • total amount shown on the Full Payment Submission(s) (FPS) for a tax month, including any corrections or adjustments submitted on or before the 19th of the following month
  • less the amount shown on any Employer Payment Summary (EPS), also submitted on or before the 19th of the following month.

Where amended or additional EPS or FPS returns are made after the 19th of the month these will be reflected in the payment due for the following period.

HMRC also advise that employers should also use an EPS to tell them that there is no FPS to send (where no employees have been paid in the month) as, without it, HMRC will estimate what they believe is due and expect the employer to pay it in full.  This estimate is known as the ‘specified charge’.

A specified charge will be issued for each month that the employer fails to report. A specified charge does not replace the need for an employer to send a FPS, as this still needs to be sent to report the actual deductions the employer has made.

Where an employer submits an FPS or EPS within seven days of the specified charge, these submissions will overwrite the specified charge. This means that an employer can pay the reported amount rather than the specified charge.

Employers can check their 2013/14 PAYE payment position by using the online PAYE Liabilities & Payments Viewer to confirm the real time submissions that HMRC have received and to check what is owed and been paid. This viewer will also include any specified charges.

Please do get in touch if you have any queries on payroll issues.

Internet link: HMRC news

HMRC gather extra £220m from high net worth individuals

HMRC have announced that their High Net Worth Unit, which deals with the tax affairs of 5,800 people with assets in excess of £20m, increased its yield from tax enquiries by 10% in 2012/13 to £220m.

Exchequer Secretary to the Treasury, David Gauke, said:

‘HMRC’s High Net Worth Unit provides the specialist attention they require in ensuring the wealthy pay the tax they owe. This Government has reinvested almost £1 billion in HMRC and expects them to deliver almost £22 billion in 2014/15.’

‘Since 2010, the unit has raised £582 million, increasing its revenue year on year which, at a time when the Government is focused on reducing the deficit, is delivering real results for the country.’

Internet link: HMRC press release