Tax-free meal expenses
With the need to complete P11Ds looming, it is important that all employers understand just what expenses they can pay tax-free without having to make any reports to the Inland Revenue.
The rules are simple, but must be properly applied by the employer to avoid a detailed inspection of all claims for up to six years.
Breakfast rate
The employee can receive £5 per day if they leave home before 6am and buys a meal away from home. Hut, only if they do not usually leave for work before 6am.
One meal rate
If the employee is away from their home or usual workplace for at least five hours and buys a meal then they can claim a £5 allowance.
Two meal rate
If the employee is away from their home or usual workplace for at least ten hours and buys a meal then they can claim a £10 allowance.
Late evening meal
If the employee has to work later than 8pm, having worked their normal hours and buys their meal, then they can calim £15; but only if they do not normally work late.
Combined allowances
It is entirely permissible to combine allowances. So if you normally work 9-5, and on one day have to work 5am to 9pm on a clients premises, then you are entitled to the Breakfast rate, the two meal rate and the Late evening meal rate or £30 per day.
To apply to pay these allowances, then employers need to complete form P11DX to be allowed by the Inland Revenue to administer the scheme.
For more advice, then please contact Angus.Labels: Staff
New PAYE penalties
The new penalties for late payment of PAYE and CIS will come into force on 5 April 2010, and will affect the PAYE due on 19 May 2009.
In essence the penalties will arise if you are late in making any payments of PAYE, but if there is only one late payment in the year then the penalty will be waived.
The penalty increases with each default up to a maximum of 4% of the PAYE paid late.
Virtually every employer will be affected, so you need to make sure that your procedures are changed to make the payments on time.
We will be working with our clients over the coming months to help you make these payments by BACS on the exact day that they are due.
In the meantime, we are urging employers to make sure that everything to do with employment, contractors and PAYE is fully up to date well ahead of the deadline.
The precise rules, and the very limited grounds for appeal against penalties, are detailed here.
Labels: Staff, Tax
New Minimum Wage rates
From 1 October 2009, the following minimum pay rates will apply:
| NMW Rate | Current rate | New rate |
| Main rate for workers aged 22 and over | £5.73 | £5.80 |
| Rate for workers aged 18-21 | £4.77 | £4.83 |
| Rate for workers aged 16-17 and over compulsory school age | £3.53 | £3.57 |
| Accommodation offset rate(Weekly maximum) | £31.22 | £31.57 |
| Accommodation offset rate(Daily) | £4.46 | £4.51 |
If you need help or advice on implmenting the NMW, then please contact Sue.Labels: Staff, Tax
National Minimum Wage
From 1 October 2008 the following NMW rates apply:-
- Workers aged 22 and over - £5.73 per hour
- Workers aged 18-21 - £4.77 per hour
- Workers aged 16-17 - £3.53 per hour
Labels: Staff
Holiday pay
From 1 October 2007, the statutory minimum annual holiday entitlement will rise from 4 weeks (20 days for those working a 5 day week) to 4.8 weeks (24 days). From 1 April 2009, all workers, including those working part time, will be entitled to 5.6 times their usual working week - capped at a maximum of 28 days.
Employees will not have to work for a qualifying period. They will be entitled to the increased entitlement in full as soon as they start work. You will be able to restrict the rate at which they take leave in their first year of employment.
You can include time off for bank and public holidays in the entitlement.
Part-time workers must receive annual leave equal to 4.8 then 5.6 times their usual working week, regardless of what days of the week they usually work.
The changes will not apply to you if by 1 October 2007 you:
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already pay all your full- and part-time employees for a minimum of 5.6 weeks of annual leave (though this figure can include bank and public holidays)
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do not allow payment in lieu of taking holiday
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allow the extra 1.6 weeks to be carried over for only one year - if you normally allow holiday to be carried over
You must calculate the increases proportionally, depending on when your leave year starts. You can round up partial days to the nearest full day or leave them as such. You will not be allowed to round down a partial day.
If both you and an employee agree to the arrangement, you will be allowed to carry over to the following year some or all of the additional holiday.
You must include the additional holiday when you work out average weekly working hours.
Labels: Holiday, Staff
New CIS scheme - contractors need support
Nicolson, Chartered Accountants, are leading the way in providing support to businesses needing assistance with the new CIS scheme.
Sue Nicolson said, "We act for many businesses who are either Contractors or Sub-Contractors and we quickly became aware of the difficulties posed by the new CIS scheme. We have researched the situation thoroughly and we have already assisted clients in setting up the proper arrangements to ensure that they comply with the numerous requirements of the Inland Revenue."
"Getting it wrong is not an option - the penalties are potentially horrendous. We are in a position to help all those who will be impacted by this scheme, providing telephone support, on-line verification on behalf of Contractors, and assistance in lodging returns on time to ensure that the risks are minimised."
"Contractors who want to benefit from our expertise can phone us to discuss what we can do for them - and avoid all the hassle."
Labels: Staff, Tax
Smokers beware
The European Union have recently confirmed that employers can refuse to employ smokers without being guilty of discrimination.
Following enquiries by an MEP, the Commission ruled that the case of an Irish employer refuse to accept applications from smokers was not discrimination that was prohibited by the treaty, and consequently was permitted.
Sue Nicolson, HR Partner, said, " I would always advise employers to seek advice before taking any similar stance to ensure they comply with the legislation".
Labels: Staff
