0T and NT tax codes explained

Using the right tax code for your employees is key to getting your payroll spot-on. HM Revenue and Customs (HMRC) issue tax codes, or PAYE codes for individuals that are then passed to employers or pension providers to enable them to deduct the correct amount of tax from income or pension payments.  In a situation where HMRC has insufficient information …

Employers not paying the minimum wage, watch out

While the vast majority of UK employers respect the rules and pay their employees at least the National Minimum Wage (NMW), there are still a small number of employers who choose to ignore this legal obligation. HMRC are currently in the process of identifying sectors they suspect as falling foul of the rules and targeting them to ensure that they …

Penalties under RTI

While Real Time Information (RTI) may currently look like an administrative mountain looming ahead of you, once you have everything up and running for RTI, there should be no real reason to worry about penalties. That said, delays and errors do happen, particularly at the start of any new regime, so it’s well worth knowing what lies ahead should you …

Reclaiming overpaid tax

Now that we have passed another tax year end there may be employees who now realise that for one reason or another they have paid too much tax. This can typically arise where you change jobs in a year or have more than one job and too much PAYE has been deducted. As an employee the simplest course is just …

Preparing your payroll data for Real Time Information

Under Real Time Information, due to be phased in over the next couple of years, the details you give to HM Revenue & Customs (HMRC) each time you pay your employees will be checked against HMRC records and stored on their National Insurance and PAYE Service (NPS). If the information you submit does not match, you could trigger the creation …

Preparing for RTI

With the planned implementation of Real Time Information (RTI) in 2013, HM Revenue & Customs (HMRC) are spreading the message to employers saying that it is now more important than ever to ensure employee details are recorded accurately. They say that it is important to always make sure any information that you send HMRC is correct, to help ensure that …

Real Time Information

In July 2010 HM Revenue & Customs (HMRC) published a discussion paper titled “Improving the Operation of Pay As You Earn (PAYE)”. This focussed on improving the timeliness of the transmission of information to HMRC as a way of reducing costs for both employers and HMRC and for improving customer service to bothe employers and employees. The paper introduced the …