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.
HMRC Software Development Support Team have now confirmed forthcoming changes to the validation of employees National Insurance numbers from 15th November.
Back in June this year DWP issued a number of unexpected prefix formats (for example the letters KC) which failed HMRC validation formats via RTI. The problem resulted in some employers being presented with what appeared invalid NINOs and HMRC systems rejecting the new formats. Now HMRC are updating their systems to accept on the basis of revised validation specification.
With an aging population and decreasing pension benefits, it is only to be expected that some people are being forced to work longer to cope with the rising costs of living.
For many, this may mean working past their State Pension age, and with this currently being on a tiered scale, rising up to 68 depending upon your date of birth, you can check your state pension here.
Are you concerned about the ever increasing burden of complying with changing tax regimes and the potential cost of simply making an error? Or have you been on the receiving end of an HMRC enquiry and have had to pay the cost of professional support, even if nothing untoward has been discovered?
