Real Time Information or RTI is now well and truly here and business owners are having to make sure they are properly ready for it. One of the requirements of RTI is that every employer will need to have payroll software to enable them to report PAYE information to HMRC in real time. While this [...]
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 [...]
HM Revenue & Customs (HMRC) have announced that PAYE payments will be made to a single bank account from the beginning of the 2013/14 tax year. From Tax Month 1 of 2013/14 payments should be made only to the Accounts Office Cumbernauld bank account. This will affect employers who make PAYE payments to HMRC by: [...]
Sir Paul Chambers devised PAYE tax codes in the UK, back in the mid 1940’s following a trial system that ran between 1940 and 1941. Effectively a way of collecting advance tax payments, it’s not surprising that this way of dealing with tax was conceived during the Second World War when the treasury was facing [...]
Recent research shows that there has been a significant rise in HM Revenue & Customs (HMRC) investigations related to tax code errors used by employers on payslips. The firm who carried out this research, Pinsent Masons, revealed that there were nearly 1600 investigations in the year 2011-2012. In their view, “cost-cutting measures and outsourcing by [...]
The Chartered Institute of Payroll Professionals (CIPP) recently exposed that over a quarter of employees are in the dark with regard some of the details on their payslip; almost 15% don’t check their payslip and over one in twenty employees never even look at it. These finding were the result of research carried out by [...]
The PAYE processes in operation in the UK today are pretty much unchanged since the whole concept was introduced back in 1944. In today’s climate whereby many people rely on various sources of income, it seems strange that this system, which agreeably has worked well since the mid 1940’s can still be efficient and effective [...]
Following the systems difficulties suffered by Nat West and RBS banks there are many businesses where PAYE payments made for the 19 or 22 June may have reached HM Revenue & Customs late. Given the current PAYE late payment penalty rules this may be a problem. Paying your PAYE late is not a big deal [...]
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 [...]
Penalties for late payment of PAYE were introduced in April 2010 but as there is no current absolute mechanism for HM Revenue & Customs (HMRC) knowing when a payment is late until at least after the last payment for 2010/11 is due there have been no penalties levied as yet. Anyway it is difficult to [...]
