What’s new for employers 2011 Business Education & Support Team.

What’s new for employers 2011

Business Education & Support Team

What’s New for employers V2 | 2011 | 2

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.


Tax allowances 2011-12

• Personal allowance £ 7475.• Tax code 747L.

For P9X www.businesslink.gov.uk/payeformsandpublications


Tax bandwidths 2011-12

• Basic Rate 20% £1 to £35,000• Higher Rate 40% £35,001 to £150,000• Additional Rate 50% £150,001 and above.


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’.


New tax code

From 2011- 12• Code D1.


Coding changes - employees

From 2011- 12• Code 0T week1/month1.


Coding changes - pensions

From 2011- 12• Code 0T week1/month1.


National Insurance limits from 6 April 2011

£ per week Tax year2010-11

Tax year2011-12

Lower Earnings Limit £97 £102

Primary Threshold £110 £139

Secondary Threshold £110 £136

Upper Accrual Point £770 £770

Upper Earnings Limit £844 £817


National Insurance Contributions (NIC)rates from 6 April 2011

Tax year2010-11

Tax year2011-12

Class 1 Employee NIC 11% 12%

Class 1 Employer NIC 12.8% 13.8%

Class 1A Employer NIC 12.8% 13.8%

Class 1B Employer NIC 12.8% 13.8%

Additional NIC 1% 2%


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


Statutory Payment Rates

• Statutory Sick Pay £81.60.


Statutory Payment Rates

• Statutory Maternity Pay £128.73. (Standard rate)

• Statutory Adoption Pay £128.73.


Statutory Paternity Pay

• Ordinary Statutory Paternity Pay £128.73.• Additional Statutory Paternity Pay £128.73.


Small employer compensation

• Small employers relief (if applicable) 3%

Statutory Maternity Pay, Ordinary Statutory Paternity Pay, Additional Statutory Paternity Pay and Statutory Adoption Pay


Employer supported childcare – scheme conditions

• No longer need to be generally available to all.


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.


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)


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.


Equalisation of State Pension age (SPa)

For further information, go to:

Employerswww.businesslink.gov.uk/payeformsandpublicationswww.hmrc.gov.uk/paye/employees/changes/pension-age.htm

Employeeswww.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/DG_4017919


Regional employer NICs holiday for new business

• Available to eligible new businesses which start up in the period22 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


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


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/cdromBasic PAYE Tools www.businesslink.gov.uk/basicpayetool


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.


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.

http://www.businesslink.gov.uk/employeremailalerts


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.


Reminder for employers - online filing in year forms

From 6 April 2011

• Virtually all employers must send their Starter and Leaver forms online.


Employer Annual Return

• Electronic P60.


Employer Annual Return

• Is a NIL Return or no Return required?


Employees - subsistence expenses

The benchmark scale rates that apply from 6 April 2009 are as follows:

Description Amount (up to)

Breakfast rate £5

One meal (5 hour) rate £5

Two meal (10 hour) rate £10

Late evening meal rate £15


Employees - changing company car

From April 2011, we will once again accept online notifications of company car changes on form P46(Car).


Company cars - advisory fuel rates for company cars from 1 December 2010

Engine size Petrol, hybrid petrol and electric

Diesel LPG

1400cc or less 13 pence 12 pence 9 pence

1401cc to 2000cc

15 pence 12 pence 10 pence

over 2000cc 21 pence 15 pence 15 pence


Company cars - advisory fuel rates for company cars from 1 March 2011

Engine size Petrol, hybrid petrol and electric

Diesel LPG

1400cc or less 14 pence 13 pence 10 pence

1401cc to 2000cc

16 pence 13 pence 12 pence

over 2000cc 23 pence 16 pence 17 pence


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.


HMRC launches consultation

• Real Time Information (RTI).• Improving the operation of PAYE.• The consultation will run until 28 February 2011.


Payslip booklet now called payment booklet

Could you do without yours?

For more information www.businesslink.gov.uk/payingpaye


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.


Business Payment Support Line

If you have a bill you can’t pay

• Contact HMRC Business Payment Support Line

• 0845 302 1435.


Miscellaneous

VAT• The standard rate from 4 January 2011 is 20%.


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.


EmployerTalk Bitesize

• 16 February Watford• 2 March Doncaster• 10 March Burnley• 16 March Chester• 22 March Aberdeen.


Anyone self-employed?

Changes from April 2011Payments for your Class 2 National Insurance contributions will

become due on • 31 January and 31 July• the same as a Self Assessment tax bill.


Capital Allowances from 1 April 2012

• Annual Investment Allowance £25,000• Writing Down Allowance 18%• Special rate 8%


Limited Companies

• Registering for HMRC’s Online Services.


Tax Help factsheets

For more information www.businesslink.gov.uk/taxhelp


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 0845 764 6406• Business Education & Support Team 0845 603 2691• Agent Account Managers www.hmrc.gov.uk/agents/aam.htm


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.


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.


Evaluation

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What’s new for employers 2011 Business Education & Support Team.

Documents

Transcript of What’s new for employers 2011 Business Education & Support Team.