When a person starts in a new employment, the employer is required to determine whether the engagement constitutes a contract of service or a contract for services. In other words, the employer must decide whether the person is to be treated as employed or self-employed, for both PAYE tax and NICs purposes.
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Posted October 14th, 2009 | No Comments »
Towards the end of 2009 and during 2010, the first national identity cards will be issued to the general public, first in Manchester and then across the North West. Following a consultation exercise in 2008, the Government has made a number of Regulations related to the issuing of these cards.
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Posted October 8th, 2009 | No Comments »
The transfer of taxpayer data to the National Insurance Recording System (NIRS) was originally planned for summer 2008 but, according the new Employer Bulletin 31, it will not take place until “later this year”.
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Posted March 16th, 2009 | No Comments »
From 6 April 2009, the new “upper accrual point” (UAP) replaces the “upper earnings limit” (UEL) for the purpose of limiting the amount of earnings on which a contracted-out rebate or minimum contribution is payable and which are taken into account in calculating accrual entitlements for the state second pension.
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Posted February 16th, 2009 | No Comments »
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Posted February 16th, 2009 | No Comments »
Employers and their employees may enter into Agreements or Joint Elections in order to allow an employee, in anticipation of NICs liabilities arising on share option gains, to agree to meet the employer’s Class 1 NICs liabilities. The Joint Election approach involves a document that legally transfers the liabilities to the employer but only if it has HMRC approval.
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Posted November 24th, 2008 | No Comments »
In an interim decision given by the Special Commissioner on 23 October 2008 in the case Mason v HMRC, the Special Commissioner ruled that he was unable, pending further information, to uphold Mr. Mason’s appeal on statutory grounds but expressed the view that Mr. Mason has a “real, and very unfortunate, grievance” against the Secretary of State for Work and Pensions and HMRC.
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Posted November 17th, 2008 | No Comments »
From April 2009, Jobcentre Plus will align and lengthen payment periods for the majority of Working Age benefits. It will involve assigning a single benefit week ending day for each individual, regardless of the benefits they receive. Payment will be made fortnightly in arrears for a benefit week-ending day that is determined by the customer’s National Insurance number.
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Posted October 6th, 2008 | No Comments »
For the particular benefit of payroll system developers, HMRC has published samples of the P11 and P14/P60 forms that will be used for the 2009/10 tax year. They reveal the way in which NICs will be recorded and reported following the introduction, from April 2009, of the “upper accrual point” (UAP). The UAP is the new fixed-value threshold that lies between the earnings threshold (ET) and the upper earnings limit (UEL).
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Posted August 25th, 2008 | No Comments »
The National Insurance Contributions Act 2008 also completed all of its stages before Parliament went into recess on 23 July. Some of the measures involving the upper earnings limit and the new upper accrual point have changed somewhat since the original Bill was introduced. The following notes summarise the changes.
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Posted August 4th, 2008 | No Comments »
