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Softworld
Regulations, Acts, and everything else you
  need to know about payroll legislation




             Karen Thoms...
INDEX OF SLIDE TOPICS


 •   Attachment of Earnings
 •   Citizen News
 •   Employment Law
 •   Expenses & Benefits
 •   Fo...
INDEX OF SLIDE TOPICS

•   Online Filing
•   PAYE
•   Pensions Reform
•   Scotland
•   Statutory Payments
•   MISC
Attachment of Earnings




    IPP Policy & Research
            Name
Attachment of Earnings
Scottish Earnings Arrestment Orders

• Expected implementation date April 2010
• Stakeholders consu...
Attachment of Earnings
   Weekly Earning Arrestment Orders
Net Earnings                Deduction
Not Exceeding £95.77     ...
Attachment of Earnings
Monthly Earning Arrestment Orders
Net Earnings               Deduction
Not Exceeding £415         N...
Attachment of Earnings
    Daily Earning Arrestment Orders
Net Earnings               Deduction
Not Exceeding £13.64      ...
Attachment of Earnings
           CSA
New Developments:

• Web base provider for remittance
  information

• BACs and sing...
Citizen news




IPP Policy & Research
        Name
Citizen News
               ID Cards
• Jan 2010 - Tier 2 workers – skilled
  migrants from outside UK
• Post offices to be...
Employment Law News




   IPP Policy & Research
           Name
Employment Law
    Age Discrimination
• Heyday Challenge
  – High court ruled UK not breaching
    Age Discrimination legi...
Employment Law News
                NMW
• 1 October 2009
  – Employers will no longer be permitted to
    include tips as ...
Employment Law News
    Agency Workers
• EU Directive for equal treatment
• Temporary staff will have equal
  rights after...
Employment Law News
         Holiday Pay
• House of Lords rules holiday pay can
  be accrued while on sick leave
  – Worke...
Employment Law News
        Holiday Pay
• ECJ rules on Pereda v Madrid
  Movilidad SA case
  – Workers can re-claim holida...
Employment Law
           Redundancy Rates

• 1 October £380 per week
  – held until February 2011
Expenses and Benefits
Expenses and Benefits
   Advisory Fuel Rates
• HMRC say that they will no longer
  provide one month’s notice for
  employ...
Expenses & Benefits
            Payrolling

• HMRC still consulting with stakeholders
• Payrolling trial to take place Jan...
Expenses & Benefits
        Salary Sacrifice


• Times reports that tax relief on
  childcare vouchers to be
  abolished
 ...
Expenses & Benefits
       Salary Sacrifice


• Cycle to work scheme
  – HMRC confirms no exemption where
    legislation ...
Forms
Forms
                      P9
Tax Credits:
• Overpayments of TCs to be coded
• Trial April 2009
  – 5000 individuals volu...
Forms
              P46 (Ex-pat)
Introduced from 6th April 2009
• For Foreign nationals who have been seconded
  to work i...
Forms
                   P46 (Car)
Introduced from 6th April 2009
  – Employer can choose to send in replacement car forms...
Forms
               FMed 3

– Public consultation published May 2009
– Revised form hoped to be introduced in
  Autumn 20...
Forms
                  P60


• The IPP lobbying for electronic versions to
  be permitted
• Letter submitted August 2009
...
Online
Considerations
Online Considerations
    PAYE Desktop Viewer
• New service available 5 October
  2009
• Download from HMRC website
• Impr...
PAYE
PAYE
Tax Changes Budget 2009
• April 2010
  • Three bands 20%, 40% and 50%
  • Personal Allowances Nil over £100K
  • Pens...
PAYE
           Expatriate Employees
• All communication should now be addressed to one
office:

         Manchester Expat...
PAYE
            Student Taxation
• Abolish P38(S)
• Students will have a front loaded tax
  code
• Consultation to commen...
PAYE
    Repayments & Debt
• HMRC introduced a pilot scheme
  May 2009
  – To use debt collectors similar to the
    CSA
 ...
PAYE
         E82 Letters
• No PAYE scheme in operation?
• What to do if this affects you?
  – Contact HMRC to re-open the...
PAYE
  Date of Leaving – P45
• Does HMRC use this date?
  – Pension Commutations
  – Employment Law considerations
Pensions
Pension Reforms
    State Pension Age
• Equalisation of State Pension
  Age
  – 1995 Pensions Act
  – Impacts women from A...
Pensions Reforms
    State Pension Age
• National Insurance
  contributions
  – Currently women cease paying NI
    at age...
Pensions Reform
   Automatic Enrolment
• Pension Facility for employees
  – All employees must have the
    opportunity to...
Pensions Reform
   Automatic Enrolment
• Three documents published Sept 2009
  – Employer responsibilities consultation du...
Pensions Reform
      Personal Accounts

• Employers will:
   – Automatic enrol eligible workers
   – Phased in approach l...
Pensions Reform
     Personal Accounts

• The scheme:
  – Contribution limit £3,600 at 2005 levels
  – 8% for average earn...
Pensions Reform
             Personal Accounts
• Indicative dates:

• Autumn 09
   – Regulations consultation (Pack 2); de...
Statutory
Payments/Deductions
Statutory Payments/Deductions
   Additional Statutory Paternity Pay

• Consultation document published – closes 20
  Novem...
Miscellaneous
Miscellaneous
  Criminal Records Bureau
• The fee for a standard disclosure
  will drop from £31 to £26 from 1
  October 2...
Questions
Regulations, Acts, and everything else
           you need to know about payroll
                      legislation


     ...
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Regulations, Acts, and everything else you need to know about payroll legislation

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Karen Thomson, Associate Director of Policy & Research, Institute of Payroll Professionals

Legislation now and for the future including: Heyday challenge and its implications for payroll; Scottish Arrestment Orders; agency workers; pension reforms.

Published in: Business, Economy & Finance
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Regulations, Acts, and everything else you need to know about payroll legislation

  1. 1. Softworld Regulations, Acts, and everything else you need to know about payroll legislation Karen Thomson MIPPdip Associate Director of Policy, Research and Strategic Visibility
  2. 2. INDEX OF SLIDE TOPICS • Attachment of Earnings • Citizen News • Employment Law • Expenses & Benefits • Forms
  3. 3. INDEX OF SLIDE TOPICS • Online Filing • PAYE • Pensions Reform • Scotland • Statutory Payments • MISC
  4. 4. Attachment of Earnings IPP Policy & Research Name
  5. 5. Attachment of Earnings Scottish Earnings Arrestment Orders • Expected implementation date April 2010 • Stakeholders consulted September 2009 • Legislation expected to be presented to Ministers October 2009 • IPP submitted a survey response from members who did not oppose the proposals….
  6. 6. Attachment of Earnings Weekly Earning Arrestment Orders Net Earnings Deduction Not Exceeding £95.77 Nil Exceeding £95.77 but not £19% of earnings exceeding £346.15 exceeding £95.77 or £4 whichever is greater Exceeding £346.15 but not £47.57 plus 23% of exceeding £576.92 earnings exceeding £346.15 Exceeding £576.92 £100.65 plus 50% of earnings exceeding £576.92
  7. 7. Attachment of Earnings Monthly Earning Arrestment Orders Net Earnings Deduction Not Exceeding £415 Nil Exceeding £415 but not 19% of monthly earnings exceeding £1,500 exceeding £415 or £15 whichever is greater Exceeding £1,500 but not £206.15 plus 23% of exceeding £2,500 earnings exceeding £1,500 Exceeding £2,500 £436.15 plus 50% of earnings exceeding £2,500
  8. 8. Attachment of Earnings Daily Earning Arrestment Orders Net Earnings Deduction Not Exceeding £13.64 Nil Exceeding £13.64 but not 19% of earnings exceeding exceeding £49.32 £13.64 or £0.50 whichever is greater Exceeding £49.32 but not £6.78 plus 23% of earnings exceeding £82.19 exceeding £49.32 Exceeding £82.19 £14.34 plus 50% of earnings exceeding £82.19
  9. 9. Attachment of Earnings CSA New Developments: • Web base provider for remittance information • BACs and single transactions
  10. 10. Citizen news IPP Policy & Research Name
  11. 11. Citizen News ID Cards • Jan 2010 - Tier 2 workers – skilled migrants from outside UK • Post offices to be used as a pilot for easier access • Regulations to be laid in October for Tiers 1 and 5 but introduced 2010 and not 2011
  12. 12. Employment Law News IPP Policy & Research Name
  13. 13. Employment Law Age Discrimination • Heyday Challenge – High court ruled UK not breaching Age Discrimination legislation – Compulsory retirement age review brought forward to 2010
  14. 14. Employment Law News NMW • 1 October 2009 – Employers will no longer be permitted to include tips as part of the calculation for National Minimum Wage
  15. 15. Employment Law News Agency Workers • EU Directive for equal treatment • Temporary staff will have equal rights after 12 weeks • UK will have max 3 years to transpose the Directive • Prime Minister announces legislation in coming months
  16. 16. Employment Law News Holiday Pay • House of Lords rules holiday pay can be accrued while on sick leave – Workers who are denied holiday pay while on sick leave can claim to an unemployment tribunal for unauthorised deduction from wages under the Employment Rights Act 1996 – Employers will be required to top up PHI payments to ensure employees are on full pay while on holiday
  17. 17. Employment Law News Holiday Pay • ECJ rules on Pereda v Madrid Movilidad SA case – Workers can re-claim holiday if sick during their annual leave – Self certification rules accepted
  18. 18. Employment Law Redundancy Rates • 1 October £380 per week – held until February 2011
  19. 19. Expenses and Benefits
  20. 20. Expenses and Benefits Advisory Fuel Rates • HMRC say that they will no longer provide one month’s notice for employers – Retrospective calculations may be required
  21. 21. Expenses & Benefits Payrolling • HMRC still consulting with stakeholders • Payrolling trial to take place Jan 2010 • IPP working in partnership with PAS Ltd • Those already payrolling will be required to submit a return and possibly 2 P11Ds
  22. 22. Expenses & Benefits Salary Sacrifice • Times reports that tax relief on childcare vouchers to be abolished – IPP investigating future plans
  23. 23. Expenses & Benefits Salary Sacrifice • Cycle to work scheme – HMRC confirms no exemption where legislation prevents employees from joining scheme – therefore not deemed available to all
  24. 24. Forms
  25. 25. Forms P9 Tax Credits: • Overpayments of TCs to be coded • Trial April 2009 – 5000 individuals volunteered to TC code out • Under Powers, Deterrents and Safeguards – Condoc Repayments and Debt: The Next Stage – Proposal suggests recovery of small debt via PAYE
  26. 26. Forms P46 (Ex-pat) Introduced from 6th April 2009 • For Foreign nationals who have been seconded to work in the UK, while remaining employed by an overseas employer • NOT to be used in relation to migrant workers • P86 no longer accepted
  27. 27. Forms P46 (Car) Introduced from 6th April 2009 – Employer can choose to send in replacement car forms but must submit starter form and finish form – From 2010 employers must only submit forms when an employee is provided with a company car, and only when the employee no longer has the company car – IPP working with CBI to request voluntary admin burden reduction not compulsory – Decision expected mid October 2009
  28. 28. Forms FMed 3 – Public consultation published May 2009 – Revised form hoped to be introduced in Autumn 2009 – Form is expected to include GP expectation of return to work date – Once the form has been introduced it is expected that there will be further enhancements to the process
  29. 29. Forms P60 • The IPP lobbying for electronic versions to be permitted • Letter submitted August 2009 • Await response from HMRC
  30. 30. Online Considerations
  31. 31. Online Considerations PAYE Desktop Viewer • New service available 5 October 2009 • Download from HMRC website • Improved search and record keeping facilities
  32. 32. PAYE
  33. 33. PAYE Tax Changes Budget 2009 • April 2010 • Three bands 20%, 40% and 50% • Personal Allowances Nil over £100K • Pensions Tax Relief reduced
  34. 34. PAYE Expatriate Employees • All communication should now be addressed to one office: Manchester Expatriate Team 3rd floor Trinity Bridge House 2 Dearman’s Place Salford M3 5BG
  35. 35. PAYE Student Taxation • Abolish P38(S) • Students will have a front loaded tax code • Consultation to commence shortly • IPP members will be consulted • Expected 2011
  36. 36. PAYE Repayments & Debt • HMRC introduced a pilot scheme May 2009 – To use debt collectors similar to the CSA – Stakeholders opposed this pilot
  37. 37. PAYE E82 Letters • No PAYE scheme in operation? • What to do if this affects you? – Contact HMRC to re-open the scheme
  38. 38. PAYE Date of Leaving – P45 • Does HMRC use this date? – Pension Commutations – Employment Law considerations
  39. 39. Pensions
  40. 40. Pension Reforms State Pension Age • Equalisation of State Pension Age – 1995 Pensions Act – Impacts women from April 2010 – Letters issued to those women affected – National Insurance implications
  41. 41. Pensions Reforms State Pension Age • National Insurance contributions – Currently women cease paying NI at age 60yrs – From 2010 and beyond will cease when women reach their “new” State Pension Age – All cease at age 65yrs until further reforms to increase to age 68yrs
  42. 42. Pensions Reform Automatic Enrolment • Pension Facility for employees – All employees must have the opportunity to join a workplace pension scheme • Qualifying schemes – Details of proposals in Pensions Act 2008
  43. 43. Pensions Reform Automatic Enrolment • Three documents published Sept 2009 – Employer responsibilities consultation due by 5 November 2009 – Default investment options consultation due by 17 December 2009 – DWP’s response to automatic enrolment consultation document
  44. 44. Pensions Reform Personal Accounts • Employers will: – Automatic enrol eligible workers – Phased in approach likely to be large employers first – Minimum employer contribution of 3% likely to be phased in starting with 1% – Total minimum contribution for workers should equal 8% of the set band of earnings
  45. 45. Pensions Reform Personal Accounts • The scheme: – Contribution limit £3,600 at 2005 levels – 8% for average earner (£23,700) would be £1,900pa so within limit – Current regulations ban transfers in and out of the scheme except for special circumstances – Expected to be delivered electronically • Procurement process commenced for provider • IPP to respond to latest condoc
  46. 46. Pensions Reform Personal Accounts • Indicative dates: • Autumn 09 – Regulations consultation (Pack 2); detailed employer duties
  47. 47. Statutory Payments/Deductions
  48. 48. Statutory Payments/Deductions Additional Statutory Paternity Pay • Consultation document published – closes 20 November 2009 – Applies to babies due on or after 3 April 2011 – No extension to SMP to 52 weeks at this time – Partners/fathers taking 26 weeks will have 13 weeks paid and 13 weeks unpaid – Adoption – matched for adoption on or after 3 April 2011
  49. 49. Miscellaneous
  50. 50. Miscellaneous Criminal Records Bureau • The fee for a standard disclosure will drop from £31 to £26 from 1 October 2009 • CRB check to extend option for immigration check
  51. 51. Questions
  52. 52. Regulations, Acts, and everything else you need to know about payroll legislation Thank You Karen.thomson@payrollprofession.org Tel: 01228 590963

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