.png)
.png)
Extracts from the bulletin follow; for the complete version readers can visit www.hmrc.gov.uk/employers-bulletin/index.htm.
Student loans
The procedure for starting and stopping student loan deductions is to change from 6 April 2008. At the moment employers have to start student loan deductions on the first pay day falling 42 days or more after the date of issue shown on the start notice form SL1. They have to stop deductions on the first pay day falling 42 days or more after the date of issue of the stop notice, form SL2.
From 6 April 2008 the law is changing and the 42 day lead-time is being removed. From this date, employers must start student loan deductions on the first available pay day after the SL1 start date, and stop deductions on the first available pay day after the SL2 stop date.
Pension payments
PAYE should now be operated on all current and future pensions irrespective of the amount being paid. Starting with the end of year return for the current tax year, i.e. 2007-08, employers must:
- Submit a form P14 for all pensions paid in the year, irrespective of the amount.
- Where formal tax codes are not in operation and the pension is being paid without deduction of tax, continue to pay it gross until HMRC advise the correct code to be applied.
- Include the amounts paid in the end of year return for 2007-08 using a default code of NT on the P14.
HMRC will review all P14s showing code NT and confirm that this is to remain, or change it to reflect the proper tax position for that pension.
New online tools
There are three new online tools for employers available on the Business Link website, www.businesslink.gov.uk. These are:
- written statement of employment tool;
- redundancy calculation tool using the statutory redundancy scheme;
- employment law checklist tool.
P45 developments
From April 2008, all P45s and P46s (and similar pension information) whether sent online or on paper must meet HMRC's updated quality checks.
HMRC say that it would be helpful if employers entered employees' dates of birth and gender on P45s and P46s (and similar pension forms), as well as providing their National Insurance number wherever possible. The date of birth helps HMRC to match employee information with their records if they do not have the correct National Insurance number. Employees' dates of birth and gender will both have to be shown on all P45s, P46s and pensions information from April 2009. Age discrimination law does not make it illegal to ask for, hold, or disclose to HMRC a person's date of birth.
Employer Bulletin issue 27, October 2007
