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Payroll


Off-Payroll Working Rules (IR35) Going Ahead

The draft Finance Bill clauses issued for consultation on 11 July include legislation to extend the “off-payroll” working rules to the private sector from 6 April 2020. These changes will have significant implications for workers providing their services through personal service companies and also the end-user organisations that engage such workers. End users will be […]

Read more August 8th, 2019

Using a PAYE Settlement Agreement To Pay Some Of Your Employee’s Tax

PAYE settlement agreements (PSAs) are arrangements under which an employer can settle the income tax and National Insurance liabilities on benefits in kind and expenses payments provided to employees and officeholders. Setting up a PSA avoids passing on an unexpected, and potentially demotivating, tax charge to employees. Where a PSA has been agreed with HMRC, […]

Read more July 12th, 2019

Changes To National Minimum Wage April 2019

National Minimum Wage (NMW) and National Living Wages (NLW) increased from 1 April 2019. Please see the table below for the new rates: Employers should review the ages of employees to ensure they are paid the correct gross pay when carrying out your payroll procedures. At Shapcotts we check an employee’s age as part of […]

Read more April 24th, 2019

Disguised Remuneration Loan Charge Starts April 2019

This new charge will apply to certain loans to directors and employees that are still outstanding at 5 April 2019 and new arrangements put in place after that date. The charge will affect arrangements involving loans made via Employee Benefit Trusts (EBTs) and similar disguised remuneration schemes adjudged by HMRC and the courts to be […]

Read more April 9th, 2019

Personal Service Company Changes From April 2020

In the Autumn Budget the Chancellor announced that the “off payroll” workers rules that currently apply in the public sector would be rolled out to the private sector in 2020. The government have now issued a consultation paper that sets out proposed tax and national insurance changes that will impact on those supplying their services […]

Read more April 9th, 2019

Scottish Income Tax Rates For 2019/20

The Scottish Parliament has the power to set income tax rates on non-savings and non-dividend income for Scottish taxpayers. It has been confirmed that the 5 band structure and tax rates (19%, 20%, 21%, 41% and 46%) will remain the same for 2019/20. The thresholds for lower tax rates will rise in line with inflation […]

Read more April 8th, 2019

Collecting Unpaid Tax For 2017/18 Through Your PAYE Coding

Under certain circumstances, it is possible to arrange the collection of unpaid tax through your PAYE coding rather than making a balancing payment on 31 January. This will depend upon the amount outstanding and the amount of income taxable under PAYE. There is a further condition that the return is submitted to HMRC online before […]

Read more December 7th, 2018

Notify HMRC Of EBT And Similar Loans By 30 September

HMRC have published revised guidance on settling tax liabilities in relation to the use of disguised remuneration schemes involving Employee Benefit Trusts (EBTs) and similar arrangements. In order to settle on preferential terms before the outstanding loan charge arises on 5 April 2019, taxpayers must register with HMRC and provide all of the required information […]

Read more September 11th, 2018

Working In The “Gig” Economy

The House of Commons Work and Pensions Committee has recently published a report calling on the Government to close the loopholes that allow “bogus” self-employment practices, which burden the welfare state but reduce the tax contributions needed to sustain it. This follows the “Matthew Taylor” inquiry which took evidence during February and March 2017 from […]

Read more August 9th, 2017

Reporting To HMRC Every Quarter To Go Ahead In 2018

The Government and HMRC remain committed to the “Making Tax Digital” (MTD) project with more information being sent online to HM Revenue and Customs (HMRC) by employers, pension funds, banks and other institutions. The next big step will be the introduction of quarterly reporting of income and expenditure by businesses and landlords from 2018. HMRC […]

Read more October 20th, 2016