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A coding notice problem was highlighted recently by some correspondents to the PayPerShop Forum and similar issues were raised in the press and elsewhere. Employers were receiving multiple and conflicting coding notices for individual employees. In response to the problems, HMRC issued the following explanation: Continue reading
Posted February 4th, 2010 | No Comments »
Early in 2009 HMRC announced that it was changing its bankers from the Bank of England to Citi and Royal Bank of Scotland Group and that new sort codes and accounts numbers were being introduced in April 2009.
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Posted January 27th, 2010 | No Comments »
This is an adjustment to the item that appeared in the last newsletter of 2009. The explanation confused the way in which HMRC will handle two tax changes from April 2010, namely (1) the new 50% additional rate of tax and (2) the reduction to the personal allowance for individuals with an annual income of £100,000 or more.
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Posted January 15th, 2010 | No Comments »
A new “additional” higher tax rate of 50% is introduced for the 2010/11 tax year and applies to all taxable income, including savings income, above the £150,000 higher rate limit. The Finance Act 2009 made no reference to this change; it should be expected to be included in the Finance Bill for 2010.
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Posted December 23rd, 2009 | No Comments »
The 2009 Pre-Budget Report documents made reference to “PAYE scheme pooling”. This arrangement would allow large connected employers to combine or “pool” their PAYE scheme references, returns and payment obligations in order to reduce administration time and costs.
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Posted December 18th, 2009 | No Comments »
The Finance Act 2008 made provision for HMRC to accept payment of taxes by credit card but imposed a requirement for the taxpayer to pay a fee that covers the costs incurred by HMRC in handling the payment.
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Posted December 4th, 2009 | No Comments »
In previous newsletters we have suggested that tax code D1 would likely be used to force deduction of tax under PAYE at 50% when this new higher rate is introduced in April 2010. Tax code D0 is currently used where all of an employee’s earnings are taxable under PAYE at the 40% tax rate. The current computer specifications for PAYE tax table routines define the use of tax codes D1 and even D2 for higher rates of tax. Most, if not all, computerised payroll systems are capable of handling tax code D1.
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Posted September 23rd, 2009 | No Comments »
A press release issued by HMRC on 2 September provides guidance to students on the procedures that allow them to be paid without having tax deducted if they earn less than the personal tax allowance during the 2009/10 tax year.
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Posted September 9th, 2009 | No Comments »
In March 2008, HMRC published a consultation document entitled Modernising PAYE Processes for Students. It addressed concerns that, as a result of changing student work patterns, the P38(S) procedures may no longer address the needs of most working students. In particular
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Posted July 15th, 2009 | No Comments »
Question 6 in the Part 3 – Checklist section of the P35 Employer Annual Return is poorly worded and confusing. There are two parts to the question: Continue reading
Posted May 25th, 2009 | No Comments »
