Employers Bulletin Issue 20 - April 2005

Contents

Welcome

Welcome to another jam-packed issue of Employer’s Bulletin!

There's a real up-beat feel on our team at the moment and I think it's because we're back on the road with our nationwide series of EmployerTalk events. These are combined seminars and exhibitions where you have the chance to get one-to-one advice from Inland Revenue experts to help you to manage your payroll more effectively. See the EmployerTalk 2005 page below if you want to come to one.

We've lots of useful information, as well as the Budget News on the pages below. And we've news about the withdrawal of Tax Credits Payment Via Employer (PVE) - this should make life a little easier for you!

We're rapidly approaching the deadline for Employer's Annual Returns, with many of you looking to take advantage of the cash incentives for filing online. We've got important information about online filing and the incentives on the page below. You can find more up-to-the-minute news and information on our website. If you have any difficulty filing online please look there and check the FAQs. If you still have difficulty ring the Online Services Helpdesk - but only for online filing problems please.

This issue also has lots of help with Statutory Payments with articles on Statutory Paternity Pay, Statutory Sick Pay and the latest on the 'Alabaster' case. And we've a small article about Pension Simplification. There'll be more about it in future Bulletins.

There are some incorrect dates in a few of our helpbooks: the E12, E15 and E15 supplement. Details of the errors and the correct dates can be found at Stop Press - Latest News

And finally, I've got some good news about registering as a New Employer - since February it's got a lot easier. Only three months ago any new employer who contacted the New Employer's Helpline would have waited several weeks to get their PAYE reference and details of their PAYE office. Now the process is much, much easier and new employers get their information shortly after their first contact. Good news indeed!

The next issue of Bulletin will be with you in October.

Don Macarthur
Employer Programme Director

Magnetic Media Users

Using magnetic media, such as tape, CD ROM, disk or cartridge, to send your P14s is not online filing.

We have not sent you a magnetic tape version of the paper P35, as the P35(MT) has been withdrawn. We have sent you an ordinary paper P35 instead. If you do not file online you must use this paper P35. Fill it in, and tell us your magnetic media P14s are being sent separately.

If you have fewer than 50 employees and you submit your P14s by magnetic media you will not get a £250 incentive payment. If you have 250 or more employees and you use magnetic media you will receive a penalty for not filing online.

Electronic Payments

All employers must make sure their payments reach us on time. Electronic payments need to be with us by the 22nd of the month and we must have cleared funds no later than that day. If the 22nd is a non-bank working day your cleared funds need to be with us by the previous bank working day.

Banks vary in the length of time it takes them to process electronic payments. Please check with your own bank what their cut-off date and time is for getting the payment to us by the due date.

Large employers (250 or more employees) must pay electronically. The letter we sent you in November 2004 told you whether you are a large employer for the year 2005-06. If that letter told you for the first time that you are a large employer you must pay electronically from May 2005 onwards. Smaller employers who choose not to pay electronically and continue to pay by post must ensure their cheque reaches us by the 19th.

BACS Direct Credit

We have made it simpler to pay by BACS Direct Credit (including Internet and Telephone banking). From May 2005 you can make your normal monthly or quarterly payment of tax and NIC in a single amount.

Please only use your Accounts Office reference, in the format 123PA00012345, when making a combined tax and NIC payment. Don't add any word, characters or spaces to the 13-character reference as this may delay the payment being credited to your account.

Employers already making separate tax and NIC payments by BACS Direct Credit can continue to do so as now if they wish.

If you make all your payments by BACS Direct Credit you can stop us sending you payslip booklets. Just send us an email from our website.

You can find out more about electronic payment and also stop us sending you a payslip booklet at Payment of PAYE page.

If you're gonna do it, do it right. Do it online

Are you using your payroll software to its full potential? It may already be capable of sending us forms and returns online using our PAYE Online services.

As well as filing your Annual Returns (P14s/P35/P11Ds) our online services enable you to send forms in online during the year too. Good news for your employees as their new tax code could be back in your system in a matter of days rather than weeks.

Check your payroll software at

Even if your software isn't listed, it may still be able to file online. Contact your software supplier for more information.

If you don't have payroll software - we offer a free 'Online Return & Forms - PAYE' product that you can use once you have registered for PAYE Online for Employers.

Our product is suitable for employers with fewer than 50 employees. You can save personal information for all your employees, such as address, date of birth and National Insurance number. These details are then transferred automatically to the online form that you send to us for your employee.

Go online at PAYE Online services (Internet) for full details of what you can do.

Do it online

At the time of going to print 545,000 employers had registered to use PAYE Online for Employers.

Most employers file online between 10am and 4pm. If you can, try to send us your Return outside those hours, you might get a faster service. And it will help if you avoid the peak filing days, usually 18 and 19 May, as well.

£250 tax-free

Small employers (fewer than 50 employees) who file their 2004-05 Return online successfully can get £250 tax-free.

Small employers whose Returns are accepted, can deduct (self-serve) their £250 payment from a future payment to IR.

When we process the Return information later, we will credit the £250 to your payment record and send you written confirmation. If you haven't already self-served, you can ask us then to send you a cheque for the balance, after any outstanding debts have been settled.

We have introduced legislation so that we will not make the tax-free payments for filing an Employer's Annual Return online in the tiny minority of cases where we suspect the system is being abused.

The changes also clarify how the £250 payment will be applied or paid. If you ask for a repayment,we will set the £250 against any outstanding arrears of, for example, tax and National Insurance, and then repay the balance.

Quality checks

When you send your Return online, our computer will do some quality checks immediately.

You will get an on-screen message if your Return has been accepted (passed our checks). Electronic Data Interchange (EDI) users will get an email. If you send your Return in parts see aside.

We will also tell you if your Return fails these checks. If you filed:

  • online, you will get an on-screen message
  • via EDI, we will send you an email.

If your Return is on paper, and it fails our checks, we will send it back to you.

Either way, you must put your Return right and send it back by 19 May.

The rest of our quality checks will be done later. So we might still contact you about your Return, ask you to put right any problems and resubmit it. If this happens you will still be entitled to the tax-free payment for filing online and we will not send you a late filing penalty if your original return was filed by 19 May. Keep a copy (it doesn't have to be a paper copy) of the information you sent in case we have any questions later.

Don't phone to check the progress of your Return. We will contact you if there are any problems with it.

Sending the Return in parts

If you have to send your P14s separately from your P35, you can send them in online in batches (parts). Each time you send in a part, you will get a message telling you the whole Return has been accepted or rejected. This message refers only to the part just sent. Do not misinterpret this message as a successful submission of the whole Return. Every part of your Return (P35 and P14s) must be sent and accepted to get the £250 payment. We must have the whole Return by 19 May to avoid a late filing penalty.

Recently registered for PAYE Online for Employers?

When you activate PAYE Online for Employers all the tax code notifications etc we would normally post to you go to your secure mailbox, unless you opt out of receiving them online. See page 10 of February 2005 Bulletin for how to opt out or the Online filing handbook at Do it Online: online filing

Pension news

There are several changes in the pension tax rules being introduced next year, from 6 April 2006.

One major change will be that an employee will be able to take a pension from an occupational pension scheme and continue to work in the same job. At the moment most employees cannot take their pension until they leave their job. This change is to allow the flexibility to take pension while continuing to work.

Another change will be to the age at which pension benefits can be taken. Currently employees can take pension benefits at the age of 50 but this will be raised to 55 by 6 April 2010. Each retirement benefit scheme can decide when this change will come into effect. There will be transitional arrangements - see Pension Schemes - Home Page for details.

In the last edition of Bulletin we told you that you can now provide information and advice about pensions to your employees and they will not be taxed on it. You can find more about this at Expenses and benefits in kind: a guide to tax and NICs: home page

At the point of no Return

There are several changes in the pension tax rules being introduced next year, from 6 April 2006. Employees may come to you with questions because we have been looking at whether people who get most of their income through PAYE, or as a pension, and who otherwise have simple tax affairs, need to complete Self Assessment (SA) tax returns.

Following a change to the SA guidelines last April we have identified a number of people who no longer need to complete returns. We have been writing to them (letter SA251) to tell them about this change. The letter includes notes which explain how their affairs will be handled within the PAYE system and what needs to be done if their circumstances change.

Instead of an SA return, if an employee has expenses to claim or additional income we will, if we need to, send a Tax Review form (P810) form instead. Any extra tax due will normally be included in the following year's tax code. If anyone wants to continue receiving SA returns or has a change of circumstances that means they should complete them again they must tell their Revenue office.

For further information go to the April 2005 edition of Tax Bulletin.

Gender Change

Transsexuals are allowed to legally change their recorded gender under the Gender Recognition Act 2004, which came into effect on 4 April 2005. If an application is successful a full Gender Recognition Certificate is issued. A holder of a full Gender Recognition Certificate has all the same rights as other people of his or her acquired gender.

If one of your employees has made a successful application and they present you with their full Gender Recognition Certificate you will need to:

  • take a copy
  • update your personnel records to reflect the employees 'acquired ' gender and the title by which they want to be known and
  • review the employee's National Insurance contributions (NICs) position. This may change if the employee is aged 60 or over or has been paying reduced rate NICs.

The P14 should show the recognised gender at the date of completion not the gender at birth.

Further information and a list of FAQs can be found on the Gender Recognition page.

Tax Credits

We will be finalising claimants' awards for 2004-05 between now and the end of September. And, as they renew their claims, we will be setting their initial awards for 2005-06 based on their actual income and circumstances in 2004-05.

Budget changes will start in November (see p9), if you were paying tax credits at 5 April 2005 continue to do so using the last rate we told you. If we want you to stop paying or to amend the daily rate we will tell you, giving you the normal 42 days notice.

The tax credit payments made from 6 April are provisional for 2005-06 and we will review them when we get a renewal claim. Where we find that an employee's provisional payments for 2005-06 should be made at a higher rate than their payments for 2004-05, we will send a Payment Via Employer (PVE) Amendment Notice giving the normal 42 days notice.

In the next few months we will issue at least one stop or amendment notice for each employee receiving Working Tax Credit. In some cases you will receive two notices for the same employee; one will be as a result of finalised personal circumstances and the other will be as a result of reviewing their income. If you receive more than one notice for the same employee with the same effective date, pay tax credits in line with the notice with highest issue number.

If you want to know more about the renewals process see Employer's renewals.

Tax Credit funding

You can ask for any funding not used in 2004-05 to be carried forward to 2005-06. Please see the reverse of the Funding Notification form TC712 for further details.

Don't forget to renew your funding application (form TC716) if you need it to continue in 2005-06. You must return this to us by 20 May 2005 for funding to continue.

Contact Accounts Office Cumbernauld if you have any queries or you haven't received your form.

P60s

You must provide a form P60 to all employees in employment at 5 April who have received Working Tax Credit, whether or not they have paid tax or NI contributions in that year.

More Information

If you need information about paying tax credit, see the 2005 edition of Booklet E6 - Working Tax Credit paid with wages which is available on the enclosed Employer's CD ROM, our website, or available from the Orderline 0845 7 646 646.

For further help call the Employer's Helpline on 0845 7 143 143 (textphone 0845 602 1380).

If you have any questions about tax credit funding, call Accounts Office Cumbernauld 0845 602 3518

Budget Update

Beneficial Loans - interest rate for 2005-06

The official rate of interest used for calculating whether income tax should be paid by an employee on a subsidised loan provided by their employer is set to remain at five percent for 2005-06. This official rate will continue to apply for the whole of the tax year subject to review in the event of significant interest rate changes.

Company Car Tax

The level of carbon dioxide (CO2) emissions to qualify for the minimum company car benefit petrol percentage of 15% (the lower threshold) for 2006-07 and 2007-08 will remain at 140 grams per kilometre (g/km).

Company Car Fuel Benefit

The company car fuel benefit charge uses the same emissions-based percentage charge as the company car for which the free fuel is provided.

For free fuel the company car tax percentage is applied against a set figure (the multiplier). In 2005-06 the multiplier remains at £14,400.

Alternative Fuel Discounts

Cars that are capable of running on alternative fuel such as Liquid (or Liquified) Petroleum Gas (LPG), Compressed Natural Gas (CNG) or battery propelled cars, currently enjoy a discount from the equivalent company car percentage. There have been different calculations of the discounts for bi-fuel gas and petrol cars depending on whether they are manufactured or converted to run on gas as well as petrol before or after the type approval.

For 2006-07 the discounts for cars that run on alternative fuels will be simplified to:

  • cost of conversion disregarded for bi-fuel gas and petrol cars converted after type approval, no additional percentage discount (as now) and standard discount removed (currently 1%)
  • 2% standard discount for bi-fuel gas and petrol cars manufactured or converted before type approval (currently 1%);and
  • 3% standard discount for hybrid electric and petrol cars (currently 2%)
  • additional reductions for very low emission cars no longer apply, but the new rates of standard discount mean that no-one loses because of this simplificati6on measure.

The 6% discount for electric-only cars will be maintained.

Computer and Bicycle Loan Schemes

From 6 April 2005 the benefit in kind rules on employer provided computers and bicycles will change to ensure that when ownership transfers from the employer to an employee no benefit arises where it has:

  • previously been loaned to an employee by the employer and
  • the employee pays fair market value at the time ownership transfers.

Redundancy counselling and retraining

From 6 April 2005 both part and full-time employees will be able to receive outplacement counselling and retraining expenses tax-free when they lose their job, as part of a redundancy package. The duration of the retraining course covered by the exemption will be extended from one to two years. The employee will no longer be required to attend any course on a full-time or substantially full-time basis.

Pension Protection Fund

The Pension Protection Fund (PPF) was introduced by the Pensions Act 2004 (which is Department for Work and Pensions legislation), and will come into effect from 6 April 2005. The purpose of the PPF is to provide compensation to members of defined benefit occupational pension schemes that are unable to pay promised benefits because the sponsoring employer has become insolvent and the pension scheme is under-funded.

The PPF will be funded by levies on eligible schemes. The expectation is that the levies will be funded by employers. Employers will be entitled to tax relief on levy payments, and the relief will mirror that for contributions to schemes.

Income Tax Bands

The rates of tax are unchanged by the Budget but the bandwidths will be as follows:

  • Starting rate (10%) up to £2,090
  • Basic rate (22%) £2,091 - 32,400
  • Higher rate (40%) £32,401 and over

Personal Allowances remain as announced in the 2004 Pre Budget Report.

The National Insurance limits and thresholds change (from 6 April 2005) as announced in the 2004 Pre Budget Report too.

The taxable pay Tables have been revised to show the new bandwidths. The tax calculator on the enclosed Employer's CD ROM has been revised too. You should begin using the new tax Tables or the new CD ROM tax calculator on the first pay day after 17 May 2005.

You should already be using the revised NICs Tables as it's after 6 April.

If any of your employees' tax codes need to be amended as a result of the Budget changes, we will send you a P6 (T) form (either manually or online) for each employee. Make sure you use the P7X - Tax codes to be operated from 18 May 2005 to amend the tax codes at the right time. Remember these Budget changes are in addition to the tax code changes that you should have made at 6 April 2005 in accordance with the P9X - Tax codes from 6 April 2005.

All of these forms and tables are available:

  • on the enclosed Employer's CD ROM
  • on the Inland Revenue website and
  • from the Employer's Orderline.

Tax Credits - Payment Via Employer

The Chancellor announced in his Budget that the payment of Working Tax Credit via employers (PVE) would be phased out between November 2005 and April 2006. Before we make any detailed arrangements we will be consulting further with employers' representatives.

Nearer the time we plan to explain the change by:

  • writing to all employers who pay Working Tax Credit and
  • sending information direct to all affected employees.

Employers will have to inform employees shortly before the phasing out begins. In the meantime, unless we tell you otherwise please continue paying Working Tax Credit as usual.

Scholarship payments to employees

There will be an increase in the limit for tax exempt payments made by an employer to an employee attending full time education.

For payments made for the 2005-06 academic year, from 1 September 2005 the tax-free limit will be increased to £15,000. The payments will also be NICs free to the same limit.

How this works including details of the limit, conditions and exclusions are set out in an amended Statement of Practice 4/86 (SP 4/86). For further information see Budget Note REV 32 dated 16 March 2005.

Sick opt out

You can, under certain circumstances, opt out of operating the full Statutory Sick Pay (SSP) scheme. You will still need to apply some of the SSP rules and keep some records as your employees keep their underlying entitlement to SSP. This could link, in the long term, to any entitlement to Invalidity Benefit.

To opt out of SSP you must pay wages or occupational sick pay to your employee at a rate equal to, or more than the rate of SSP for the same days that SSP is due.

You don't need to ask the Revenue for permission to do this and you can do it for some employees and not others, or for some periods of sickness and not others.

All employers must keep the following records:

  • all dates of employee sickness lasting for four or more days in a row, and
  • all payments of SSP (earnings or occupational sick pay if you opted out) that you make during each 'Period of Incapacity for Work'.

You must also keep enough records to complete form SSP1 when needed and an SSP1(L) if requested by an employee.

You can find more information about this in Helpbook E14 - What to do if your employee is sick which is available on the CD ROM and on our website.

A pregnant pause

The Department for Work and Pensions (DWP) is awaiting a ruling from the Court of Appeal which will affect how the European Court of Justice (ECJ) judgement in the 'Alabaster' case should be applied to earlier periods.

The Alabaster ruling means that a pay rise that comes into effect at any time from the start of the set period for calculating SMP to the end of a woman's ordinary maternity leave or additional maternity leave has to be taken into account in calculating her 'Average Weekly Earnings'.

The Statutory Maternity Pay (SMP) Regulations have been amended because of the 'Alabaster' judgement and the changes apply from 6 April 2005. So for any pay rise after 6 April 2005 you must look at the effective date of the pay rise to see how it affects a woman's SMP entitlement.

The Court of Appeal heard the case again on the 8th and 9th of February 2005 and at the time of going to print their decision is awaited. No detailed advice will be provided on cases involving pay rises awarded prior to 6 April 2005 until DWP have received and had time to consider the Court of Appeal's judgement.

Guidance can be found in the Employer's Helpbook E15 (supplement) 'Pay and time off work for parents' (2005), or by contacting the Employer's Helpline.

DWP are putting a list of Frequently Asked Questions on the implications of the Alabaster ruling on their website

Sweet child of mine

We've had a number of queries about Statutory Paternity Pay (SPP). Here are a few points to help you understand it better. Helpbooks E15 and E16 have detailed guidance.

There are slight differences in the way SPP is operated depending on whether the child is born to a couple or is adopted.

Born to a couple

In these circumstances SPP can be paid to:

  • the biological father
  • the partner/husband who is not the baby's father or
  • a female partner in a same sex couple.

The employee must tell their employer of expectant 'fatherhood' straight away. The employer then gives the employee the SC3 form, which advises the employee taking on the 'father' role of the terms and conditions relating to SPP. It contains a declaration for the employee to sign.

For an entitlement to SPP there are two time-related conditions to be met:

  • the 'father' must have worked for you for at least 26 weeks up to and including the 15th week before the week the baby is due and
  • the 'father' must continue to work for you up to the date the baby is born.

Your employee should tell you when they expect to stop work by the Saturday of the 15th week before the baby is due. This is treated as an application for leave.

The employee can choose when to take the leave but it must be between the day the baby is born and end within 8 weeks of the birth.

You must not pay any SPP without the signed declaration on the SC3 form, although you can allow leave without it. The time limit for producing evidence for pay is 28 days before payment is to start.

See Helpbook E15 for guidance if the baby is born early.

Adopted

The conditions for SPP in the case of adoption differ slightly and these differences are set out below.

In Adoption cases SPP can be paid to an employee (male or female) who is:

  • a partner of someone adopting a child on their own, or
  • adopting a child with their partner.

The form that must be completed is the SC4, which contains a declaration of family commitment for the employee to sign. To be eligible for SPP Adoption the father must work for you until the child is placed with the adopter.

There are also time-related conditions for SPP Adoption:

  • the father must have worked for you for at least 26 weeks in the 'matching' week (the week the adoption agency told the adopter they had been matched with a child) and
  • the father must continue to work for you from the end of the matching week up to the date the child is placed with the adopter.

In all cases you must keep the following:

  • a copy of the declaration of family commitment
  • dates of payment
  • amounts of payment
  • the date the pay period began and
  • a record of any unpaid SPP and the reason for non-payment.

Employer's Diary April 2005

April 2005

When you receive this Bulletin

  • Register (if you need to) now to use PAYE Online if you want to file your P35 and P14s online
  • Check you have changed your PAYE codes as detailed on the P9X (on the Employer's CD ROM or available from the Orderline) and on any P9T forms you've received
  • Computer payroll users - make sure you have updated your payroll parameters, including new limits for NI, tax code changes etc
  • Make your payment, if you have not already done so, for:
    • month/quarter ended 5 April
    • any outstanding 2004-05 PAYE and Class 1 NICs. (Interest will be charged on any payments
      received late)
  • If you recently registered to use PAYE Online for Employers keep an eye out for your User ID
  • you need to activate the service within 28 days of registration

May 2005

  • May 3
    • Deadline for P46(CAR)(NEW) for quarter ended 5 April to reach the Revenue
  • May 17
    • Check you have changed your tax codes in line with the Budget changes on form P7X. For all pay days after today on use the new taxable pay tables (on the CD ROM or available from the Orderline)
  • May 19
    • Deadline for:
      • cheque payments for month ended 5 May to reach our Accounts Office
      • your 2004-05 Employer's Annual Return (P14s and P35) to reach your Revenue office. (We will apply penalties if forms are received late)
  • May 20
    • Deadline for electronic payments for month ended 5 May to reach our bank account
  • May 31
    • Last date for giving a form P60 to each employee working for you at 5 April 2005

June 2005

  • June 19
    • Deadline for cheque payments for month ended 5 June to reach our Accounts Office
  • June 22
    • Deadline for electronic payments for month ended 5 June to reach our bank account

July 2005

  • July 5
    • Last date for agreement of your PAYE Settlement Agreement for 2004-05 (if any)
  • July 6
    • Deadline for:
      • P11D(b) or any other return of Class 1A NICs, P9D and P11D for 2004-05 to reach the Revenue (penalties will be charged on any P11D(b) returns not received by 19 July 2005)
      • 2004-05 P9D/P11D to be given to relevant employees
  • July 19
    • Revenue Accounts Office deadline for:
    • cheque payments for month/quarter ended 5 July
    • cheque payments of Class 1A NICs (do not send payments to Class 1A Group in Longbenton for years 2000-01 onwards)
  • July 22
    • Deadline for electronic payments to reach our bank account for:
      • month/quarter ended 5 July
      • Class 1A NICs

August 2005

  • August 2
    • Deadline for P46(CAR)(NEW) for quarter ended 5 July to reach the Revenue
  • August 19
    • Deadline for cheque payments for month ended 5 August to reach our Accounts Office
  • August 22
    • Deadline for electronic payments for month ended 5 August to reach our bank account

September 2005

  • September 19
    • Deadline for cheque payments for month ended 5 September to reach our Accounts Office
  • September 22
    • Deadline for Electronic payments for month ended 5 September to reach our bank account

Benefits and Expenses

You must tell the Revenue about the expenses and benefits that you give your employees by 6 July.

There are several ways you can do this. You can use:

  • PAYE Online for Employers - Internet or Electronic Data Interchange to file your P11D or P11D(b). You can also file your P9D over the Internet. Visit PAYE Online for Employers
  • the Employer's CD ROM (on-screen forms option) to complete your P11D, P9D or P11D(b) forms and then print them off. If you install the CD ROM you can save your employees' details for next year
  • a paper list - if you agree it with your Revenue office in advance. You need to make sure the list has all the information needed. Including:
    • the National Insurance (NI) number of all employees
    • the expenses and benefits details that you would have put on a P11D form
    • items liable to Class 1A NICs. Booklet 480 (paragraph 25.6) has further information
  • individual paper forms.

You could apply for a PAYE Settlement Agreement (PSA), which is a voluntary agreement between you and your Revenue office. You agree to pay the tax and Class 1B NICs on certain expenses and benefits given to your employees. They normally apply to items that are minor, irregular or are impractical to operate PAYE, or apportion between your employees.

You can apply for a PSA before 6 July following the end of the tax year. Expenses and benefits covered by a PSA no longer need to be included on the P11D or P9D. Contact your Revenue office for more information.

You could reduce your reporting needs by applying for a dispensation. These apply to routine expenses that clearly involve no extra tax liability. See P11DX (PDF 35K).

A tip or two

The guidance for tips, troncs and service charges in relation to Tax and VAT is unchanged. The guidance relating to National Minimum Wage (NMW) and liability for NICs has been expanded and clarifies the meaning of 'allocated, directly or indirectly, by the employer' and how this affects the NICs liability on tips. It also confirms the NICs position when such payments form part of contractual pay or are used to meet obligations under the NMW.

Party, Party, Party

In some circumstances, if you wish to, you can include staff of another organisation in your PAYE Settlement Agreement (PSA). For example, where security or agency staff working at your premises are invited to a work function along with your own staff.

A PSA can be agreed for the third party staff even if the benefit for your staff is covered by the exemption for annual parties and functions at Section 264 Income Tax (Earnings and Pensions) 2003. You can find out more about this at Social functions page.

But where you organise a function solely for staff of another organisation and you wish to pay the tax bill, a Taxed Award Scheme should be used.

EmployerTalk 2005

Face to Face with our experts

EmployerTalk is a perfect opportunity for employers, payroll agents and accountants to attend presentations on topical matters, and speak, in confidence, to our experts on a wide range of specialist subjects.In 2004 around 13,000 people attended the events. These are a few of the typical comments we have received:

  • "I would definitely recommend it for anyone dealing with payroll"
  • "Excellent presentations and knowledge to back-up"
  • "The whole event was very informative with very courteous and helpful staff"
Dates
City/Town
Venue
4 May Cardiff City Hall
25 May Edinburgh Assembly Rooms
8 June Belfast Ramada Hotel
5 July Brighton Brighton Dome
7 July Newbury Newbury Racecourse
22 September Exeter Exeter University
5 October Nottingham East Midlands Conference Centre

These events are free of charge, but by invitation only as capacity at each venue is limited. You can find out contact details or book a place at EmployerTalk 2005 or ring Sam French on 0845 366 7878

Countdown to 19 May

Here are some simple tips to help you file your Employer's Annual Return, whether you file online or on paper:

  • File early
    • Your Employer's Annual Return is due by 19 May 2005 but you can send it in now.
  • Don't use temporary National Insurance Numbers (NINOs)
    • Try to get the right NINO in every case.
    • Don't use a temporary NINO - it begins with TN followed by a date of birth followed by the gender e.g. TN 190766F. We will reject your P14s if they show them.
    • If you can't get the right NINO leave the NINO box blank and complete the date of birth and gender boxes. If your employee doesn't give you their date of birth, use 01 01 1901 in the date of birth box.
  • Give us the right pay and tax details?
    • Don't use a letter 'O' when you mean zero (0)?
    • If you have pay and tax details for previous jobs during the tax year put them in the 'previous employment(s)' boxes?
    • Always complete the 'in this employment' boxes?
    • If the employee was working for you at 5th April and you know the pay and tax details for the year, including those for any previous job(s) complete the 'Total for year' boxes.
  • If you file online don't send in a paper version!
    • If you send in a paper Return and then an online Return we will treat your Return as being made by paper
  • Get help if you need it?
    • Use Helpbook E10 - Finishing the tax year up to 5 April 2005. Check out page 2 for help in meeting the Quality Checks. It's:
      • on the Employer's CD ROM
      • on our website at www.inlandrevenue.gov.uk
      • available from the Orderline.
    • Contact our Business Support Teams
    • Phone the Employer's Helpline
    • Phone the Online Services Helpdesk on 0845 60 55 999 if your query is about filing online

Helpline and Orderline numbers

Calls may be monitored for quality control and training purposes

Helpline (telephone advice) Orderline (order your forms and guidance)

General payroll matters:

Been an employer less than 3 years?
Been an employer more than 3 years?
  • Helpline 0845 60 70 143
    Mon-Fri 8am-8pm
    Sat-Sun 8am-5pm
  • Helpline 0845 7 143 143
    Mon-Fri 8am-8pm
    Sat-Sun 8am-5pm
Textphone 0845 602 1380
(for employers who are deaf or hard of hearing)
(only people with specialised equipment such as Minicom are able to use this number)
  • Orderline 0845 7 646 646 Mon-Fri 8am-8pm, Saturday 10am-1pm
  • Fax 0870 2 406 406 (Please use your Fax Order Form)
  • most of the forms you'll need can be downloaded from the Employer's CD ROM

Other helplines:

IR Online Services Helpdesk (including technical support for Employer's CD-ROM )
Helpline 0845 60 55 999
e-mail helpdesk@ir-efile.gov.uk

Mon-Fri 8am-10pm

 

Sat-Sun 10am-6pm

 
Payroll Accreditation process

    
0845 915 9146 Mon-Fri 9am-4pm  
Stakeholder Pensions    
Helpline 0845 7 143 143 Mon-Fri 8am-8pm Sat-Sun 8am-5pm
If we are sending you too many packs, CD-ROMs or Bulletins, or you have changed address, please contact the Inland Revenue office that you normally deal with and let them know. Thank you.

Accounts Offices:

Shipley 01274 530750
Cumbernauld 01236 736121

To find the number of your local Inland Revenue office, look in the phone book under 'Inland Revenue'.

Construction Industry Scheme (CIS)

Contractors

Helpline 0845 7 33 55 88

  • Mon-Fri 8am-8pm
  • Sat-Sun 8am-5pm

Orderline 0845 3000 551

  • 7 days a week 8am-10pm

Sub contractors

Helpline 0845 3000 581

  • 7 days a week 8am-8pm

Orderline 0845 3000 551

  • 7 days a week 8am-10pm

National minimum wage (NMW)

Helpline 0845 6000 678

  • Mon-Fri 8am-6pm

Orderline 0845 845 0360

  • 7 days a week, 24 hours

NICs: special topics

Contracted out Pensions

Helpline & Orderline 0845 9 150 150

  • Mon-Fri 8am-5pm

Non-residents

Helpline & Orderline 0845 9 154 811

  • Mon-Fri 8am-5pm

 

Employer Services

Visit the Employer's Website, here you will be able to access a wide variety of information for employers, and have access to the Internet version of the Employer's Orderline.

 

  Home Top | Menu