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Employer Bulletin 50, the October 2014 edition of HMRC’s bi-monthly update, includes articles on issues including real-time information penalties, PAYE payment deadlines, vans benefit charge, the student loan threshold, and HMRC helplines. Extracts follow.
Employment payment summary
HMRC have made some changes to the employment payment summary (EPS).
Employer Bulletin 50, the October 2014 edition of HMRC’s bi-monthly update, includes articles on issues including real-time information penalties, PAYE payment deadlines, vans benefit charge, the student loan threshold, and HMRC helplines. Extracts follow.
Employment payment summary
HMRC have made some changes to the employment payment summary (EPS).
From October 2014, employers will be able to indicate on the EPS the tax month the EPS credit should be allocated against, using HMRC’s basic PAYE tools and commercial payroll software that has this functionality.
Validations will make sure tax months can be submitted only within the relevant dates, meaning an EPS credit and a full payment submission could both be related to the same tax month.
Another change will allow employers to submit a longer period of inactivity on one EPS.
HMRC have also increased the allowable period of inactivity to a maximum of 12 months, to help reduce the administrative burden for employers.
National minimum wage
The rates of national minimum wage applicable to pay reference periods starting on or after 1 October are:
- the main adult rate (for workers aged 21 and over) is £6.50
- the rate for workers aged between 18 and 20 is £5.13
- the rate for workers aged under 18 is £3.79
- the rate for apprentices is £2.73
Scottish rate of income tax
The Scottish rate of income tax will be introduced from 6 April 2016. It will be administered by HMRC as part of the UK-wide income tax system and applied to the non-savings income of those defined as Scottish taxpayers.
The definition of a Scottish taxpayer depends on where an individual resides, not where they work. Individuals who move around the UK without having an identifiable main place of residence for most of the tax year will need to count the number of days they spend in Scotland compared to the rest of the UK.
HMRC expect to contact individuals in autumn next year if their records indicate they are a UK taxpayer and their place of residence is in Scotland. Further information, including relevant tax codes will be issued in early 2016.
HMRC will tell employers whom they should treat as a Scottish taxpayer by identifying them with a Scottish tax code. Employers will need to operate tax tables and perform a tax calculation appropriate to the Scottish rate of income tax set by the Scottish parliament.
