Many businesses underestimate just how de-motivated staff get when payroll doesn't run smoothly payroll quote

Dataplan payroll blog

50% tax rate and Personal Allowance clawback - 09 Mar 10

The 5th April is nearly upon us. And this year there are two significant changes for higher earnining employees.

The first change is the highly publicised new 50% tax rate for income above £150,000. If you have employees paid at this level March sees your last chance to benefit from the lower rates in 2009/10.

There is a small window of opportunity left to apply a simple strategy. If you have any bonuses in the pipeline for your high paid employees you could advance them pay before 5 April 2010, with your employees benefitting by a 10% tax saving.

 

Are you dealing with Student Employees correctly - 05 Mar 10

As a payroll provider we are often asked what do I do if I hire a student over the holiday period. And with Easter fast approaching we enter a period where mistakes are commonly made.

Well the first point is simple. Unless you are hiring an employee solely during summer, winter or Easter holidays then as an employer you must tax them as a normal employee.

If you are hiring in those key holiday periods then there are circumstances when you may be able to pay them without deduction of PAYE but they will still be subject to NI.

Incorrect Tax Codes - 28 Feb 10

HMRC have again acknowledged there are problems with incorrect code notifications for 2010/2011.

It is recommended that all employees rigorously check notices to ensure they are correct. One alarming example is in respect of van fuel benefit. The correct charge for 2010/2011 is £550. However the notice of coding may show £1050.

HMRC have carried forward the charge for 2009/2010 of £500 and added it to the 2010/2011 charge.
 

Sickpay and annual leave - guidance announced - 15 Feb 10

The interaction between sick leave and paid annual leave is particularly complicated and does not necessairly follow logic from an employers perspective.

This has left many employers and payroll service providers confused over paying employees and what their entitlements are. We are delighted to see that the Department for Business, Innovation and Skills has launched further guidance following the European Court of Justice (ECJ) decisions in the Stringer and Pereda cases.

The guidance released in the wake of these cases makes it clear that:

Employer notification of Tax Codes - 14 Feb 10

HMRC will shortly commence the issue of notices of coding to employers for 2010/2011 on forms P9. As a result of problems encountered in January and February following HMRC's incorporation of the new PAYE computer, incorrect code notices have been issued to employees. As a result, where HMRC are aware of the problem, forms P9 will not be issued at this point.

Sick or Fit? - 31 Jan 10

From 6 April 2010, if Parliament approves the changes, a new ‘fit note‘ is going to be introduced in place of the traditional doctor’s sick note that we all know and love.

Late PAYE Payment Penalties - 22 Jan 10

For the first time HM Revenue and Customs are introducing monthly penalties for late payment of PAYE,NIC and CIS. The penalties are based on the number of defaults in a 12 month period. The first late payment will not incur a penalty however subsequent late payments will be penalised as follows:-
 

Save up to 44% with Workplace Car Parking Schemes - 19 Jan 10

The provision of parking to an employee for a car or motorcycle is exempt from Income Tax and National Insurance Contributions.

Status Disputes - 18 Jan 10

Status disputes are a specialised area of taxation. Unfortunately they impinge on one of the most common forms of taxation, Pay as you Earn (PAYE). In fact they are at its very heart as anyone working in payroll services will quickly realise.

Latest HMRC email scam - 14 Jan 10

Today has seen another round of scam emails from fraudsters purporting to be HMRC. If you receive an email like that feature below please delete it. HMRC are extremely security conscious and would under no circumstances email requesting details.

From: HM Revenue and Customs
Sent: 14 January 2010 10:47
To:
Subject: Notice of Underreported Income

Taxpayer ID: vacancies-00000110065038UK
Tax Type: INCOME TAX
Issue: Unreported/Underreported Income (Fraud Application)

Syndicate content