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Ceridian Customer Conference 22 September 2010

Ceridian Customer Conference 22 September 2010. HMRC Update Richard McGuire Business Education & Support Team. Agenda. Budgets 2010 Changes from 6 April 2010 NPS – An update CD-ROM Looking ahead. 2010 : The year of two Budgets. 2010’s Budgets: Communications.

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Ceridian Customer Conference 22 September 2010

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  1. Ceridian Customer Conference22 September 2010 HMRC Update Richard McGuire Business Education & Support Team

  2. Agenda • Budgets 2010 • Changes from 6 April 2010 • NPS – An update • CD-ROM • Looking ahead

  3. 2010 : The year of two Budgets

  4. 2010’s Budgets: Communications • We did not issue an updated CD-ROM following either Budget • You were sent issue 35 of Employer Bulletin following the March Budget – the last paper copy we will issue • e-mail alerts

  5. Budget 2010: Announcements affecting employers Company cars and vans • For years from 6 April 2010 to 5 April 2015: • Full relief for cars and vans which cannot produce CO2 emissions when driven • Reduced charge for cars which have approved CO2 emissions of exactly 75g/km or less

  6. Budget 2010: Announcements affecting employers Company car tax from 6 April 2012: • Introduction of new CO2 g/km emissions limits • Company car tax bands extended down to new 10% band • All emission thresholds moved down by 5g/km

  7. Budget 2010: Announcements affecting employers Income Tax from 6 April 2011: • Personal Allowance to be increased by £1,000 to £7,475 • Basic rate limit - currently £ £37,400 – to be reduced; figure to be announced following publication of the Retail Prices Index for September 2010

  8. Budget 2010: Announcements affecting employers National Insurance Contributions from 6 April 2011: • Employees will pay 12% on earnings between the primary threshold and the Upper Earnings Limit; and 2% on earnings above the UEL • Employers will pay 13.8% on all earnings above the secondary threshold • The secondary threshold will rise by £21 a week above indexation

  9. Changes from 6 April 2010

  10. Penalties for late payment In this context, PAYE includes: • Tax • National Insurance Contributions • Construction Industry Scheme deductions • Student Loan deductions

  11. Penalties for late payment of PAYE The new penalties: • apply to any employer or contractor who does not pay on time and in full • replace the Mandatory Electronic Payment surcharge currently applied only to ‘large’ employers • apply to payments due on or after 19/22 May 2010…but will be assessed after the end of the tax year More information at: www.hmrc.gov.uk/paye/problems-inspections/late-payments.htm

  12. Penalties for late payment of PAYE: When we will charge penalties • Do not expect a letter each time you pay late • We will review employers’ and contractors’ payment records after the end of the 2010-2011 tax year; and • Issue first penalties from April 2011

  13. Penalties for late payment of PAYE: How to avoid them Pay on time! • don’t leave payment to the last minute • check on what day the 19th or 22nd falls • consider changing your payment method • sign-up for e-mail alerts • visit www.businesslink.gov.ukandsearch ‘key filing dates’

  14. Penalties for late payment of PAYE If you face difficulties paying: • Let us know as quickly as possible – but before the payment is due • Contact the Business Payment Support Service on 0845 302 1435 • Have to hand: • Your tax reference number(s) • Details of the tax involved • Details of when you expect to be able to pay

  15. Equalisation of State Pension age (SPa) • From 6 April 2010 the age at which women reach SPa will gradually rise to become the same as it is for men – 65 • The change will be phased in between April 2010 and April 2020 • All women born between 6 April 1950 and 5 April 1955 are affected • All women born on or after 6 April 1955 will reach SPa at age 65

  16. Equalisation of State Pension age (SPa) • DWP is writing to all women affected, advising them of their revised pension age • Women should notify their employers • NICs are due from women over age 60 up to their new SPa • Category C, employer-only NICs are due only in relation to employees working beyond their SPa

  17. Equalisation of State Pension age (SPa) For further information, go to: Employers • www.hmrc.gov.uk/guidance.cwg2.pdf • www.hmrc.gov.uk/paye/employees/changes/pension-age.htm Employees • http://pensions.direct.gov.uk/en/state-pension-age-calculator/home.asp

  18. NPS – An update

  19. National Insurance and PAYE Service (NPS) • In June 2009, NPS replaced the 25 year old PAYE IT system (COP) • Customer-centric so easier for HMRC as well as customers • Delivers a faster, more efficient and accurate service • In the majority of cases, queries can be answered at first point of contact, saving time and resources • Greater accuracy in our records as we update them with information from our customers • Reduces the burden on employers… • …but the transition from COP to NPS has highlighted some issues

  20. National Insurance and PAYE Service (NPS) Issues: • Annual Coding • Importance of quality of data • End of Year Reconciliation

  21. Notifying changes in personal information • It is vital that HMRC has correct personal information • National Insurance Number • Date of Birth • Full name • Address • Daytime telephone number • Employees and pensioners can now e-mail HMRC to tell us of changes to the final three • Go to www.hmrc.gov.uk/individuals/change-of-circs.htm • This will reduce the number of MS120 forms we send you

  22. CD-ROM

  23. CD-ROM • Download the September update from: www.hmrc.gov.uk/employers/cdrom/index.htm • Don’t forget to register for e-mail alerts at: www.hmrc.gov.uk/paye/forms-publications/register.htm

  24. CD-ROM 2010: Help and guidance Go to www.hmrc.gov.uk/employers/cdrom/index.htm for updates and Frequently Asked Questions Watch this space for future developments…

  25. Looking ahead

  26. National Minimum Wage: Changes from 1 October 2010 • The main rate of NMW will be payable to workers aged 21 and over • Revised rates come into force for all age bands • There will be a new NMW rate for apprentices

  27. NMW rates from 1 October 2010

  28. Electronic P60s • Employers to have the option to provide P60 information in paper or electronic format • The change comes into effect for the tax year 2010-11 onwards, meaning that the first P60 that can be provided electronically will be that for the year ending 5 April 2011 • The information recorded on form P60 is not changing • HMRC publication RD1 (Substitute forms P60) will be updated

  29. Additional Statutory Paternity Pay and Leave Will apply to: • Parents of babies due to be born on or after 3 April 2011; and • Partners of children matched for adoption on or after the same date

  30. Additional Statutory Paternity Pay and Leave From August 2010: • Technical specifications for Payroll software available From October 2010: • Guidance for employers and workers at • www.hmrc.gov.uk • www.businesslink.gov.uk • www.direct.gov.uk From April 2011: • Updated Helpbook E19 and ASPP calculator available at: • www.hmrc.gov.uk

  31. Shaping the future? ‘Improving the operation of Pay As You Earn (PAYE)’ • Discussion document issued 27 July 2010 • Comments to be sent by 23 September 2010 • Access via www.hmrc.gov.uk/consultations/index.htm • Discusses: • Real Time Information; and • Centralised Deductions

  32. Any questions?

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