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Frontier Software plc has won a contract to supply WEB Aruba with chris21, a comprehensive human resource integrated solution, together with additional modules: L&D21 Learning and Development and HR21 Employee Self Service Module.

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A wide variety of topics are covered in this week’s newsletter. A key article is a summary of the Government’s plans to restrict the tax relief on employer-supported childcare – including childcare vouchers – for employees paying tax at 40% or 50%. The changes will not occur until 2011/12 and there are yet a number of unanswered questions. To support this news item, our Employer FAQ this week looks at the childcare tax exemption that is not affected by these plans – the provision of on-site nurseries.

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Our recent review was unable to confirm the date when the new “fit notes” will come into use in Northern Ireland.  The necessary Regulations were made on 1 March 2010 and come into force, as in the rest of the UK, from 6 April 2010.

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In a newsletter at the end of December 2009 we announced the annual changes to various payments and awards that are reviewed annually on 1 February.  At the time it was expected that the same rates would apply in Northern Ireland from 15 February 2010.

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In a decision given on 23 February 2010 in the case Bebbington v Palmer (t/a Sturrey News), the London Employment Appeal Tribunal (EAT) dismissed the appeal and confirmed that the paper boy in question was not an employee for the purpose of employment rights and his claim for unfair dismissal could not therefore be heard.

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The 2010 CD-ROM was issued during February and installation errors are already being reported.  HMRC has issued the following instructions:

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HMRC’s online Employment Procedures Manual includes two Appendices (7A and 7B) that provide special modified procedures for PAYE tax and NICs.  Appendix 7A allows employers to make a formal agreement with HMRC in respect of tax-equalised employees coming from abroad that allows estimated NICs to be paid and reported and final correct payments to be made by 31 March following the end of the tax year.  Appendix 7B makes similar provisions for higher-paid employees working abroad.

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The official rate of interest is reduced from 4.75% to 4.00% from 6 April 2010.  There is no change to the official rates that apply in relation to Japan and Switzerland.  The official interest rate for a particular tax year is published annually in form P11D(INT) and is included on the Employer CD-ROM.  For unknown reasons, the P11D(INT) that is included on the 2010 Employer CD-ROM is for the 2008/09 tax year, not the 2009/10 tax year!

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In December 2009, HMRC changed the period of notice given to employers of the semi-annual adjustments to the advisory mileage rates for company cars.  Previously any changes had been introduced from January and July each year and a month’s notice was given in advance in each case, allowing employers to introduce the new rates up to a month before their official implementation date.

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From 1 May 2010, new EU Regulations will change the NICs rules for employees working in Europe and their employers.  The following guidance, based on some rather cumbersome material published by HMRC, is the current understanding of the changes but is subject to change.

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