Important information for EMPLOYERS from HMRC

Paying HMRC Switch to Electronic We are encouraging all customers to pay electronically as it is safer, quicker and more cost effective. You can use the following methods: • Direct Debit • Online or telephone banking (including Faster Payments, Bacs, and CHAPS) • Debit/Corporate Credit card online. If you already pay electronically please review the reference information you have provided to your bank to ensure it is up to date. Find out more about paying us electronically at Paying HMRC. 8 Employer Bulletin December Issue 75 Contents Making payments to HMRC easier A green ‘pay now’ button will be added to the GOV.UK pay employers’ PAYE guidance page around 31 December 2018. When using the ‘pay now’ feature you will be offered various payment options to choose from. The information that you need to pay HMRC will depend on the payment method you choose, you will then be: • Taken to your Digital Tax Account/Business Tax Account to sign in and pay by Direct Debit; or • Provided with the information you will need to make a payment from your bank account (bank transfer) by Faster Payment, Bacs or CHAPS; or • Taken to the HMRC Online Payment Service to make a card payment


RTI payroll submissions Accurate and timely reporting of Pay As You Earn (PAYE) in real time is vital to ensure your employees pay the correct amount of tax and receive the amount of Universal Credit they are expecting. Incorrect and late payroll submissions can lead to increased and unnecessary contact for you from employees. You can avoid this by taking the following steps: • Submit your payroll on or before your employees’ pay day with accurate and up to date employee information to avoid delays in matching the payroll information to the correct individual record • Use the starter checklist on GOV.UK if the employee does not give you a recent P45 • Provide correct start dates and starter declarations for new employees • Please ensure that leaving dates are included for employees who leave your employment • Should you need to amend the final FPS submission for a period of employment ensure that the amended FPS includes the same leaving date as previously reported. Failure to do so will re-open the employment and can lead the issue of further codes • When changing employees’ payroll ID, ensure that the old payroll ID is provided and the change of payroll ID field is completed • If changing your payroll software do not include starter information and ensure that the year to date figures are correct. If your new software automatically assigns new Payroll IDs ensure that the old payroll ID is provided and the change of payroll ID field is completed. Further information on videos and webinars available to employers running payroll can be found in here. Getting it right first time can save us all extra work.

Student Loans – 6 April 2019 changes Changes to Student Loans from 6 April 2019 Increase in Student Loan Plan 1 and Plan 2 thresholds The Department for Education (DfE) has confirmed that from 6 April 2019 the thresholds will increase to: • Plan 1 – £18,935 • Plan 2 – £25,725. Student loan deductions will remain the same at 9% for Plan 1 and Plan 2 loans. Starter checklist The starter checklist will be updated to ask your employee if they have both Plan 1 and Plan 2 student loans. If your employee ticks that they have both, you should continue to deduct using only one Plan type at a time. If you do not know which Plan type to use then you should default to Plan 1 and check the student loan start notice (SL1) which we will send you. 9 Employer Bulletin December Issue 75 Contents Postgraduate Loan In the August edition of the Employer Bulletin we told you that DfE had launched a new loan product for England and Wales known as Postgraduate Loan (PGL). The earliest customers can start repayment of PGL is April 2019 and this will be repaid concurrently with any undergraduate student loans. The threshold for PGL for England and Wales will be £21,000, with deductions being taken at 6%. What does PGL mean for employers? • there will be new start and stop notices for PGL – the PGL1 and PGL2 • The starter checklist will be updated to include a section for PGL • Form P45 will not change. This will still only indicate whether an employee is already repaying a student loan. It will not indicate the employee’s plan or loan type. We would encourage you to ask your new employee to complete the new starter checklist to make sure deductions are being taken under the correct plan or loan type • Form P60 will be updated to include a new box for PGL deductions.


Top 10 mistakes employers make when paying the National Minimum Wage There are lots of reasons why an employer might find themselves not paying the National Minimum Wage (NMW) correctly. To help you avoid making mistakes we have drawn together a list of the most common reasons that cause underpayment. 1. Failure to apply the annual minimum wage rate increase as they go up each year on 1 April. 2. Missed birthdays as employees turn 18, 21 or 25 years old and move from one NMW rate to another. 3. Paying the apprentice rate to somebody who isn’t actually an apprentice. Recognised apprentices must have an apprenticeship contract and undergo an element of structured training. 4. Continuing to pay the apprentice rate for too long. The apprentice rate only applies to apprentices who are under the age of 19, or if aged 19 or over within the first year of their apprenticeship. 5. Making wage deductions for items or expenses that are connected with the job. This could include, for example, safety clothing, uniforms, tools etc. 6. Making wage deductions that are deemed to be for the employer’s “own use or benefit”. For example a Christmas club saving scheme. It doesn’t matter that the worker can choose to buy into the scheme and the employer doesn’t have to make a profit from it. 7. Charging a worker more than the stated offset rate for living accommodation, currently £49 a week. 8. Not paying for all the time worked such as time spent travelling, training or downtime at the employer’s disposal. 9. Not paying for additional time worked such as time spent clearing security checks once a worker’s shift has finished. 10. Including elements of pay that don’t count towards minimum wage such as tips and the premium element of pay associated with shift premium.


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