Employers provide a remuneration package that can include benefits in kind, in addition to weekly or monthly salaries. Salary (money) is taxed through the PAYE Real Time Information system. This is a very efficient system for accounting for all employees earnings.
HMRC’s Employer Compliance officers undertake many thousands of PAYE inspections in any 12 month period. Although HMRC will state that the main purpose of the review is to police the system the main reason is to bring additional money into the Exchequer.
The introduction of the Apprenticeship Levy at the beginning of the 2017/18 tax year has certainly had a big impact on the payroll landscape.
In October 2017 I wrote a blog post that laid out what to do in the case of an employee’s wages being processed under an incorrect NI number.
The Scotland Act 2012 gave the Scottish Parliament the power to set the Scottish rate of income tax (National Insurance rates continue to be uniform across the United Kingdom). The Scottish rate of Income Tax came into effect from 6 April 2016.
Sorry for such a negative blog so early in the New Year!
Businesses can make a payment late to HMRC for a number of reasons, short term cash flow, staff holidays, the employer forgets. However what are the consequences of making a late payment or not paying at all?
It is understandably concerning for any business when they learn that an employee’s wages have been processed under an incorrect NI number. Of course, the scenario is even more worrying for the affected staff member, given the implications for their personal taxation.
At Dataplan, we recognise HMRC’s role as one of the biggest stakeholders in the work that we do. We therefore pride ourselves on investing in the knowledge and expertise necessary to assist our clients in this critical area.
