PAYE News – February 2015

In-year filing penalties for schemes with 49 or fewer employees will begin 6 March 2015
Automated in-year penalties for late payment will begin from 6 April 2015 for all employers. Are you paying HMRC correctly and on time? Further information is available: What happens if you don’t report to HMRC on time

Income Tax Allowances 2015/16

It was announced that the basic personal allowance for the tax year starting 6 April 2015 will be increased to £10,600 and the tax code for emergency use will be 1060L. As a result there will be a general uplift of tax codes with suffix ‘L’ which will be increased by 60.

Abolition of employer NICs for employees under the age of 21

From 6 April 2015 a new Upper Secondary Threshold (for employers) will be introduced at £815 per week. This has been introduced to facilitate the abolition of employer NICs for employees under the age of 21. From 6 April 2015 employers will no longer be required to pay Class 1 Secondary NICs on earnings paid up to the Upper Secondary Threshold to any employee under the age of 21.

Statutory Exception for Trivial benefits

From April 2015 a statutory exemption which be introduced to allow employers to identify and treat certain low value benefits given to their employees as ‘trivial’. Further information is available: Statutory exemption for trivial benefits in kind

Dispensations

From April 2016 the requirement for an employer to apply to HMRC for a dispensation for paid or reimbursed deductible expenses and benefits will be removed. The effect of this will be that there will no longer be any reporting requirement on employers, and employees will automatically receive the tax relief that they are entitled to. Further information is available: Exemption for qualifying expenses payments

Employment Allowance – have you claimed yours yet?

Eligible businesses and charities can reduce their Employer Class 1 National Insurance contributions (NICs) bill by up to £2000 every year by claiming the Employment Allowance. Once you have claimed your Employment Allowance for the tax year ending 5 April 2015 it automatically applies for future years, until you tell HMRC otherwise. If you haven’t claimed your Employment Allowance yet, there is still time. All you need to do is check your eligibility and then claim through your payroll.

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