Payroll Update

Payroll Update

1 Introduction
■ HM Revenue & Customs
■ Obligations of employer under a PAYE scheme
■ Records required for payroll
■ Electronic filing – Year end and in Year
■ Electronic payments

2 Income tax update
■ Tax rates, earnings bands and personal allowances
■ Update on PAYE tax legislation

3 National Insurance update
■ Update on bands and earnings limits
■ Reduced rate contributions
■ Contracted-out contributions
■ Employer-only rate

4 Employee status
■ Employed vs self-employed

5 Statutory sick, maternity and paternity pay
■ Statutory Sick Pay (SSP)
■ Statutory Maternity Pay (SMP)
■ Statutory Adoption Pay (SAP) and Statutory Adoption Leave (SAL)
■ Statutory Paternity Leave (SPL) and Statutory Paternity Pay (SPP)
■ Age discrimination and effect on payroll
■ Update on maternity/paternity rights

6 Benefits and expenses
■ Reporting expenses and benefits on Forms P11D and P9D
– The future for P11Ds
– Penalties
– Items to be omitted
– P11D dispensations
■ Extra-statutory concessions/ITEPA
■ PAYE Settlement Agreements (PSAs)
■ Calculation of tax and Class 1B NIC payable
■ Records

7 Calculation of taxable car and fuel benefits
■ List price
■ Percentage
■ Availability of car
■ Reduction in benefit
■ Fuel scale charges
■ Mileage rates for company cars
■ Use of own bicycles and motorcycles for business travel
■ Mileage allowances paid to employees using their own cars
■ Vans

8 Dealing with HM Revenue & Customs PAYE and NICO audits
■ Procedure for an HM Revenue & Customs audit
■ Danger areas for revenue review