P11D Working Sheet 3 for 2005/06

Due to the changes to the tax rules for company vans from 2005/06, the Working Sheet provided to help employers calculate the cash equivalent values has been amended. The unavailability section has been simplified and the shared vans section amended to reflect the new reduction rules. A draft version of the form is available in the latest Notes for Payroll Software Developers.

P35 for 2006/07

The main change is the complete removal of boxes for tax credit payments in the "Summary of Payments" section, reflecting the scrapping of payment via employer (PVE) and HMRC taking direct payments instead.

The other change is the re-positioning of the "Deductions made from subcontractors" box. From 2006/07, form CIS36 Contractor's Annual Return will be replaced by CIS Monthly Returns. Although there will no longer be a requirement to enter the amount of "Deductions made from subcontractors" on the charge section of the P35, the box has been moved and retained to enable contractors to reconcile their payment position at the year end. A draft of the "Summary of Payments" section is included in the latest Notes for Payroll Software Developers.

P46: Employee without a form P45

A new form P46 has been developed to improve the accuracy of the information collected. The new Statements A, B and C will help employers allocate the emergency tax code accurately and allow the cumulative code to be used more frequently for employees who are working for the first time in the tax year.

A Statement D has also been added to enable former students to advise their new employer, where appropriate, to make Student Loan Deductions.

The Statements are now mutually exclusive - only one of Statements A, B or C should be ticked. The wording of the Statements and the employer's action are as follows:

Statement A: This is my first job since last 6 April and I have not been receiving taxable Jobseeker's Allowance or taxable Incapacity Benefit or a state or occupational pension.

Employer's action: the Emergency Code should be operated on a cumulative basis

Statement B: This is now my only job, but since last 6 April I have had another job, or have received taxable Jobseeker's Allowance or Incapacity Benefit. I do not receive a state or occupational pension.

Employer's action: the Emergency Code should be operated on a non-cumulative W1/M1 basis

Statement C: I have another job or receive a state or occupational pension.

Employer's action: code BR should be operated

If no box is ticked, or if the form is not signed by the employee, code BR should be operated.

The new Student Loan section says: "If you left a course of Higher Education before last 6 April and received your first Student Loan instalment on or after 1 September 1998 and you have not fully repaid your student loan, please tick box D".

A copy of the redesigned form is shown in the latest Notes for Payroll Software Developers.

...back to 4 August 2005


Sources:
Notes for Payroll Software Developers

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