Monthly Archives for May, 2012

Key Dates

May 14, 2012
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Key dates in the financial calendar

o - 19 May 2012

o - PAYE and NIC due for the month ended 5th May 2012.

o - CIS return must be submitted for the month ended 5th May 2012

o - 31 May 2012

o - Last date for giving P60s to employees working for you on 5th April 2012

o - 6 July 2012

o - Deadline for filing P11Ds for tax year ending 5th April 2012 (copies should be provided to employees at this date)

o - 19 July 2012

o - PAYE and NIC due for the month ended 5th July 2012.

o - Class 1A NIC due for tax year ending 5th April 2012

o - CIS return must be submitted for the month ended 5th July 2012

o - 31 July 2012

o - Deadline for second Self Assessment payment on account for tax year ended 5th April 2012

Electronic payment of PAYE & NIC extends the due date to the 22nd of the month.

Additional Bank Holiday

May 14, 2012
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The Government has created a special bank holiday to mark the Queen’s Diamond Jubilee; however, whether your staff are entitled to the day off will depend on how your employment contracts are written.

All employees are entitled to a minimum of 28 days’ holiday a year – which is equivalent to 20 days annual leave plus eight bank holidays. In the past, many employment contracts have stipulated that staff are entitled to 20 days’ holiday plus bank holidays, but more and more businesses are now switching to stating that workers can take 28 days leave, including bank holidays.

The benefit of doing so is that if, like this year, the Government announces a new bank holiday, then that falls within – rather than on top of - employees’ existing leave entitlement. If that is the case, you are under no obligation to give staff that day off and can either insist that they work or close for the day and take it out of their leave entitlement.

For further information, please call the ELAS Advice Team on 0161 785 2000.

Non-payment of PAYE

May 14, 2012
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From 6th April 2012 HM Revenue & Customs (HMRC) will be able to ask employers to pay a security where there is serious risk that they won’t pay over their PAYE tax deductions or Class 1 National Insurance contributions (NICs).

The required security will usually be either a cash deposit from the business or director - held by HMRC or paid into a joint HMRC/taxpayer bank account - or a bond from an approved financial institution which is payable on demand.

HMRC will focus on employers who:

o - deliberately choose not to pay tax

o - evade tax by becoming insolvent and then set up a new company the next day in order to continue trading

o - have no qualms about building up large PAYE/NIC debts

o - do not respond to HMRC’s attempts to contact them

Real Time Information

May 14, 2012
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Real Time Information (RTI) is being introduced to improve the operation of PAYE. It will make the PAYE system easier for employers and HM Revenue & Customs (HMRC) to operate, and employees will receive information more quickly. Using RTI, employers and pension providers will tell HMRC about tax, National Insurance contributions (NICs) and other deductions when or before the payments are made, instead of waiting until after the end of the tax year.

Under RTI, employers and pension providers are not required to complete a form P46 and send it to HMRC when an employee does not have a P45. However, they will need to obtain the P46 information from the employee and use it to complete the starter information which will be sent as part of the RTI payment submission, with details of the employee's first payment, when the payroll is run.

Using RTI will also mean that employers and pension providers will no longer need to complete an end of year return (P35 and P14) or P38A supplementary return, as they will tell HMRC about all payments made each time their payroll is run.

At the year end employers and pension providers will be expected to:

o - indicate on their last payment submission on or before the 5 April that this is the final submission for the tax year

o - provide each employee and pensioner with a form P60

o - complete and file any forms P11D and P11D(b) due under the existing PAYE arrangements

A HMRC pilot of the RTI service has been introduced; however, it will not become compulsory for all employers until October 2013.