Payroll giving guidance refreshed

HMRC have updated their direction for payroll giving agencies. Chapter 4 of Charities: Detailed Guidance Notes now explains the time limits for paying donations to charities and the report that ought to be sent to the taxman when donations cannot be passed on.

Agencies must pay donations to charities within 35 days if on or before the day of receipt the agency:

• knows the identity of the employee making the donation;
• knows the identity of the charity to which the donation is made; and
• has paid the nominated charity at any time in the last 12 months.

In all other cases, the agency must pay donations within 60 days.

PAYROLL ALLIANCE, the LexisNexis training service, has launched four surveys on the planned simplification of the administration of employee benefits in kind. The online polls will feed responses anonymously to the Treasury and HMRC:

• Voluntary payrolling of benefits in kind.
• Statutory exemption for trivial benefits.
• Exemption for paid and reimbursed expenses, replacing the existing dispensation arrangements.
• Abolishing the £8,500 threshold for lower paid employment and form P9D.

Issue: 4463 / Categories: News , Employees , Income Tax