Employees with outstanding class 2 National Insurance contributions (NICs) from previous years may find the debt included in their PAYE code for 2014/15.
HMRC can collect overdue NICs by adjusting a taxpayer’s code, starting from April. Notices of coding will be issued between January and March.
Those with class 2 debts will have received a letter from the tax authority earlier in the year to request payment and warn that the sum could be recouped through the taxpayer’s PAYE code from April 2014 or passed to a private debt collection agency for recovery.
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False self-employment is again being targeted. Advisers should respond to the latest HMRC consultation
Special rules apply under the IR35 regime if intermediaries were unable to finalise timely calculation of deemed end-of-year payments to PAYE and National Insurance (NI) contributions.
Intermediaries have until 31 January to submit amended returns showing the final figures and to pay any additional amount, provided a payment on account of the estimated tax and NI for 2012/13 was made by 19 April 2013, supported by a P35 showing provisional figures.
Interest will then be levied on late payments made after 19 April 2013, but no penalties will be charged if:
Littlewood Hire Ltd (TC2975)
LexisNexis’s Payroll Alliance has launched an online survey on real-time information, after the payroll management information service’s members expressed concerns about adjustments they have had to make.
HMRC have confirmed that taxpayers in Scotland with benefit from an income tax break on their pensions at the local rate.
The announcement follows work between the department and pensions industry to identify ways to deliver Scottish basic rate relief through the relief-at-source (RAS) process.
The Scottish rate of income tax (SRIT) is expected to be implemented in April 2016, after being introduced in the Scotland Act 2012.
TBD Morris Environmental Ltd (TC3009)
Professional Golfers’ Association Ltd (TC2992)
Is the exemption for employee-shareholder shares effective for National Insurance purposes?
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