Employees

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Late PAYE payments will incur in-year interest charges for the first time, HMRC have warned following last month’s introduction of a regime that replaces annual levies.

Firms that want to avoid the new-style charges, which also apply to the construction industry scheme, should settle with the Revenue by the due date – 19th or 22nd of the month – the difference between what they report on their full payment submission (FPS) together with CIS charges for the tax month, and the deductions reported on an employer payment submission (EPS).

Mothers’ Union (TC3414)

HMRC have published further guidance on eligibility for the employment allowance.

It includes clarification of “functions either wholly or mainly of a public nature”. Where more than 50% of the work of a business falls into the category, the allowance cannot be claimed. For example, a doctor’s surgery for NHS patients comprising 90% of a GP’s work.

Other areas include:

The first complete tax year under real-time information (RTI) for the majority of employers worked well, with only one major problem, according to the taxman.

HMRC have been conducting weekly end-of-year teleconferences with employer representatives since 31 March, at the request of Payroll Alliance, the LexisNexis service.

The department says information for 2014/2014 flowed through to its systems as expected, with the only significant obstacle being the Government Gateway server crash on 11 April.

HMRC now calculate tax credits awards through the real-time information (RTI) system.

The new set-up – effective from 6 April 2014 – means renewals notices will show the total gross pay for the year, which may be from more than one source.

Claimants should check that income details shown are correct and contact the Revenue as soon as possible if they think the information is wrong, the tax department said.

Some claimants may contact their employer or pension provider if they think the income is wrong. In which event, the employer or pension provider should: