Scottish Tax Arrangements - Address Determines Tax Status

1. Finance BriefApril 2016

2. Scottish tax arrangements It’s where you live, not where you work, that decides whether you’re a Scottish taxpayer. If you live in one place during a tax year, and it’s in Scotland, you’ll be a Scottish taxpayer. If you live anywhere else you won’t be. It’s your responsibility to notify HMRC and NHSBT if you change your address. If you move to or from Scotland, have more than one home, or don’t have a home, you’ll need to work out if you’re a Scottish tax payer (go to https://www.gov.uk/government/news/the-scottish-rate-of-income-tax). If the address the tax office (HMRC) holds for you is in Scotland, you’ll be sent a letter to check your address is correct. These letters started to go out in December 2015. You’ll be classed as a Scottish taxpayer if the address HMRC holds for you is in Scotland. Your April 2016 tax code will begin with the letter ‘S’ to show you’re a Scottish taxpayer. If you pay your Income Tax through your pay, HMRC will advise us to treat you as a Scottish taxpayer so you don’t need to do anything. If you fill in a Self Assessment tax return you’ll declare if you’re a Scottish taxpayer on the return.

3. Pension re-enrolment – May 2016 On 1st May 2013 Auto-enrolment was introduced in NHSBT. Under the Pension Act 2008, every employer must automatically enrol all employees who are not already in a qualifying scheme, such as the NHS Pension Scheme, into a workplace pension. For those who are not eligible to join the NHS pension scheme the NHSBT alternate scheme is NEST (National Employment Savings Trust). Under this legislation every 3 years employers have to re-assess employees who have opted out of the workplace pension scheme(s). In May 2016 NHSBT will re-asses employees - this will only affect those who opted out between 1st May 2013 to 30th April 2015. We will write to each employee impacted following this review. If you have any questions contact pay support

4. Introductory training for Managers & Supervisors - Finance and Procurement Our new one day training is being launched from May 2016 Dates through 2016 are now available on the OWD rolling calendar The day is aimed at those with responsibility for staff pay travel and expenses and non-pay expenditure. This programme is essential for all supervisors, line managers and any staff with authority for generating pay or non-pay expenditure.

5. New State Pension and increased NICs NHS Pension Scheme members The new state pension is being introduced in April 2016 At the same time the current reduced National Insurance contributions (contracted-out NICs) to for members of the NHS Pension Scheme are ending.  This means that from April 2016 those in the NHS Pension Scheme will pay the standard rate of NICs.  The impact of this is a reduction in take home pay from April 2016. To find out more information, including how your state pension may be affected or for a state pension forecast go to:- NHS Employers factsheet (http://www.nhsemployers.org/your-workforce/pay-and-reward/pensions/implications-of-the-new-state-pension) Government New State Pension (https://www.gov.uk/new-state-pension )

6. Payroll Errors – January 16 In February 16 there were 18 overpayments: 8 errors due to incorrect handling of pay protections by SBS, when the non-consolidated pay ceased in April 15 1 error due to incorrect input by Pay Support 7 manager errors: 2 Incorrect data submitted 2 late notification of termination 1 late notification of new starter 2 late notifications of absence This month has seen a good reduction in the number of overpayments. Thank you for your help and support in achieving this.

7. TRS – Total Rewards Statements Reminder: Total Reward Statement (TRS) available to view Your TRS for financial year 2014/15 is still available to view online. You will see a personalised summary of your full NHS employment package, including details of your basic pay, allowances and NHS Pension Scheme benefits. Later this year your 2014/15 TRS will be replaced by your TRS for 2015/16. Don’t forget to check out what benefits you have access to as an NHSBT employee by downloading your Total Rewards Statement (TRS) from the TRS Website. https://www.totalrewardstatements.nhs.uk/

8. Are your personal details correct? It is an employees responsibility to update us if any of the following details have changed. Bank account for pay Emergency contact details Home address & name If we hold the wrong details for you could be taxed incorrectly, paid into the wrong account or personal information may be sent to the wrong address Updating your personal details is simple. Just follow this link:http://peoplefirst.nhsbt.nhs.uk/personal-changes-2.htm

9. Accounts Payable Rapid Improvement Event The Accounts Payable team and key customers recently reviewed a key process for paying suppliers at NHSBT. After NHSBT employees have ordered goods or services and had that service delivered a ‘receipt’ needs to be recorded on I procurement. This ‘receipt’ enables the Payables team to pay the supplier. NHSBT employees do not always receipts promptly which can cause delays in payments to suppliers. The RIE team concluded that:- reminder emails to employees should be redrafted- reminder emails should escalate to managers if not actioned.- exception reporting should be produced for budget holders- targeted training will be provided ……………………………………………Thank you to all involved!

10. Finance Brief Survey We recently surveyed all recipients of the Finance Brief to determine how it could be improved.13/15 think the content is good or very good 11/15 think the format is good or very good 14/15 think the message is appropriate 9/15 think its isn't getting to a wide enough audience (not even reaching finance, should go to all budget holders, should get to the staff on the ground) 10/15 think a team talk format published on inside NHSBT would be good. Some concerns – message will be lost, no-one will follow links, ‘what is inside nhsbt?’ We will now work with Communications to build on the strengths and get finance brief to a wider audience.