Latest News

HMRC’s National Minimum Wage compliance campaign shifts to Glasgow

HMRC is understood to be shifting its National Minimum Wage compliance campaign to Glasgow  - but this is something all employers should take note of. 

National Living Wage and National Minimum Wage – how much should apprentices be paid?

Employers have a legal responsibility to pay anyone aged 23 or over at least the National Living Wage, and to pay anyone younger at least the National Minimum Wage (NMW), the amount of which varies depending on age and employment status.

Settling your PAYE liability to HMRC via Direct Debit

From September 2022 HMRC will allow you to set up a Direct Debit mandate to settle outstanding PAYE and NIC liability.

The changes made by HMRC, announced in the August 2022 issue of HMRC’s Employer Bulletin, will mean that after submitting your records to HMRC you now no longer have to set a reminder to transfer the payment.

Repeal of the 2017 and 2021 IR35 off-payroll changes

Where a worker provides their services to a client using an intermediary, such as a personal service company, the tax legislation requires that the nature of the arrangement is reviewed to determine whether the off-payroll rules apply. These rules apply to arrangements where, if the worker were to be engaged directly and not through the intermediary, they would be deemed to be an employee of the end client. Where the rules apply, those who would have been an employee if they were providing their services directly to the client, suffer largely the same income tax and national insurance contributions as employees.

National Insurance & Income Tax Reductions

Basic Rate of Income Tax

As part of the Spring Statement in March 2022 it had initially been announced that the basic rate of income tax would be reduced from 20% to 19% from 6 April 2024.  However, on 23 September 2022 the Government have now brought forward this reduction by one year. 

As a result, the reduced rate of 19% basic rate income tax will now apply from 6 April 2023.

Get to know the National Minimum Wage – the pitfalls and the penalties

This week our payroll team celebrated National Payroll Week and we thought it would be a perfect opportunity to clarify some of the specifics around the National Minimum Wage.

IR35 reforms – HMRC Room for Improvement

In 2016, HMRC estimated that only 10% of  PSCs (personal service companies) were applying the IR35 rules correctly, costing the exchequer £440 million in that year. To improve compliance, the government introduced reforms that shifted responsibility for making status determinations from the worker to the hiring body, which also became liable for any unpaid tax where it had failed to comply. These reforms initially applied to the public sector from April 2017 (affecting around 50,000 PSCs).

Spring Statement 2022 - Businesses

Whilst the support for Business was less apparent during Rishi Sunak’s Spring Statement, the focus was on consultation over the summer with a view to cutting taxes and encouraging investment for business in the Autumn.

Spring Statement 2022 - Individuals and Families

The Chancellor confirmed that from 6^th July he will raise the NIC threshold for employees and the self-employed, so that it matches the £12,570 income tax personal allowance, which will help many taxpayers who are currently facing a cost-of-living squeeze.

Spring Statement 2022 Overview - Capital, People, Ideas

As Rishi Sunak opened his Spring Statement his focus was understandably on the war in Ukraine and the devastating humanitarian impact.