Horwath Clark Whitehill - Employers Briefing - January 2009

May 5, 2009 | Publisher: CroweClarkWhitehill | Category: Business & Jobs |  

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www.horwathcw.com Issue 30 January 2009 In this issue: Payrolling benefits-in-kind Advisory fuel rates from 1 January 2009 Health screening and medical check ups Interest on late-paid PAYE and NICs Employment status Statutory payments – new rates for 2009/10 ‘An Inspector Calls’ Approaching deadlines Payrolling benefits-in-kind HM Revenue & Customs’ (HMRC) consultation on the idea of payrolling benefits-in-kind ends on 20 January 2009. The idea would be for employers to tax employees each payday on the value of their benefits. This would do away with the need for P11D returns, but would involve employers in calculating the taxable value of the benefits each payday and not just annually as at present. HMRC says that its key objectives are these: ƒ to simplify the process to reduce the administrative burden and achieve cost savings for employers ƒ to provide a better experience for employees ƒ to increase HMRC’s processing efficiency ƒ to remove the uncertainty that arises from current arrangements. It seems highly probable that the consultation will be followed by trials of possible frameworks by volunteer employers. Sceptics among our readers may be forgiven for wondering if the real aim is not to reduce HMRC’s workload by transferring a major processing burden to employers. Advisory fuel rates from 1 January 2009 HMRC has revised its advisory fuel rates for company cars to take account of falling fuel prices. The new lower rates are effective from 1 January 2009. Details of the revised rates per mile are as follows: Remember that although the rates are termed ‘advisory’, HMRC regards any excess over these amounts as liable to tax and NICs. Equally, if employees reimburse their private journeys at lower rates, HMRC may conclude that the employer has paid for some of the employee’s private fuel and impose a fuel benefit scale charge. Health screening and medical check ups New regulations on health screening and medical check ups were introduced back in August 2007. They were immediately placed on hold when HMRC realised that some benefits treated as tax-free under the concessionary treatment that had existed hitherto would become taxable. In particular, the new regulations made the tax relief conditional on the health screening being offered to all employees on similar terms. The suspension continued to the end of the 2007/08 tax year, at which point HMRC extended it to cover the current 2008/09 tax year as well. It now looks as though the new regulations will be abandoned. HMRC has announced that further legislation will be introduced in the 2009 Finance Bill to regularise the tax treatment that existed prior to August 2007 and remove the ‘similar terms’ requirement. Interest on late-paid PAYE and NICs Employers who are late in paying their PAYE deductions and National Insurance Contributions can incur interest charges. In the case of PAYE tax and Class 1 NICs, interest runs from 19 April following the end of the tax year concerned. For Class 1A NICs on benefits in kind, the relevant date is 19 July. Interest runs from these dates to the eventual date of payment. It is calculated on a daily basis according to the prevailing rate. With effect from 6 January 2009, the rate has fallen to 4.5%. Previously it was 5.5%. Engine size Petrol Diesel LPG 1400cc or less 10p 11p 7p 1401 to 2000cc 12p 11p 9p Over 2000cc 17p 14p 12p www.horwathcw.com Issue 30 January 2009 Employment status HMRC has withdrawn its guidance leaflet IR56 and replaced it with two new factsheets. ES/FS1 gives guidance for workers, whilst ES/FS2 is for engagers. At the same time it has made some modifications to its online tool, the ‘Employment Status Indicator’ (ESI). The latest release implemented on 11 December 2008 makes some changes to the wording of certain questions and inserts some additional questions on equipment and materials, intended to achieve greater clarity. Engagers can use the ESI anonymously. Each enquiry is given a unique number in case there is a need to refer to it in future. HMRC has said it will adhere to any rulings made by the ESI, provided the engager gave full and accurate information when answering the questions asked by the program. Employers are advised to print copies of the input and results screens for future reference. Statutory payments – new rates for 2009/10 HMRC has announced the new rates of statutory payments that will apply from the start of the 2009/10 tax year: ƒ the weekly rate of Statutory Sick Pay will be £79.15 ƒ Statutory Maternity Pay continues to be 90% of average weekly earnings for the first six weeks; for the remaining weeks the standard rate will be £123.06, or 90% of average weekly earnings if less ƒ the weekly rates of Statutory Paternity Pay and Statutory Adoption Pay will be £123.06, or 90% of average weekly earnings if less. ‘An Inspector Calls’ This spring we are repeating the workshops that we ran last year on dealing with a visit by HMRC’s employer compliance officers. The two half-day training workshops will be held in our London office on Thursday 12 February 2009 (primarily for professional partnerships) and again on Tuesday 24 February 2009 (primarily for corporate clients). The cost per delegate will be £150 plus VAT (£172.50 in all), which includes copies of all slides and handouts, plus a hot buffet lunch. For more details contact Judy Vincent: judy.vincent@horwath.co.uk or call 020 7842 7319 (direct line). Approaching deadlines Date Action 19 January 2009 Deadline for payment of PAYE deductions, National Insurance Contributions, student loan deductions and subcontractor deductions for Month 9 unless paying electronically). Deadline for submitting paper versions of CIS300 subcontractor returns for Month 9. 22 January 2009 Deadline for electronic payments of Month 9 deductions. Deadline for electronic submission of form CIS300 for Month 9. 19 February 2009 Deadline for payment of PAYE deductions, National Insurance Contributions, student loan deductions and subcontractor deductions for Month 10 unless paying electronically). Deadline for submitting paper versions of CIS300 subcontractor returns for Month 10. 20 February 2009 Deadline for electronic payments of Month 10 deductions. Deadline for electronic submission if form CIS300 for Month 10. This information is published without responsibility on our part for loss occasioned to any person acting or refraining from acting as a result of any information published herein. © Horwath Clark Whitehill LLP January 2009 For further information: If you would like any further information on the contents of this newsletter or any other employment related issues, contact David Daly, Brian Robson or a member of our Employers’ Advisory Group in our London office: Horwath Clark Whitehill LLP St Bride’s House 10 Salisbury Square London EC4Y 8EH Tel: 020 7842 7100 Fax: 020 7583 1720 david.daly@horwath.co.uk brian.robson@horwath.co.uk

Horwath Clark Whitehill - Employers Briefing - January 2009.pdf

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Crowe Clark Whitehill is a top 20 UK accountancy firm providing exceptional assurance and business advisory services. We are a leading authority in five areas of excellence: Corporate, Not for profit, Professional Practices, Pensions Funds and Private Clients. Our goal is to build a long-term relationship with our clients and dedicate as much partner time as possible to meet their needs. We have over 60 partners and around 500 staff based in eight offices in the UK. Our firm is the UK member of Horwath International. As one of the largest global professional service organisations, Horwath International has more than 140 independent member firms operating from 560 offices around the world. With instant access to commercial intelligence worldwide, we can help our clients to succeed in both local and global markets.

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