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Employer deadline for providing P60s

02 Mar, 2017

It is not long until the end of the current 2016-17 tax year and employers have to complete their final PAYE submission for the tax year. It is also very important that employers remember to provide employees with a copy of their P60 form by 31 May 2016. A P60 must be given to all employees that are on the payroll on the last day of the tax year – 5 April 2017.

New compensation limits announced

28 Feb, 2017

The Employment Rights (Increase of Limits) Order 2017 has been laid before Parliament and will come into force from 6 April 2017. The Order increases the limits applying to certain awards of employment tribunals and to other amounts payable under employment legislation. The main changes are:

Tax Diary March/April 2017

24 Feb, 2017

1 March 2017 - Due date for Corporation Tax due for the year ended 31 May 2016.

2 March 2017 – Self Assessment tax for 2015/16 paid after this date will incur a 5% surcharge.

19 March 2017 - PAYE and NIC deductions due for month ended 5 March 2017. (If you pay your tax electronically the due date is 22 March 2017.)

19 March 2017 - Filing deadline for the CIS300 monthly return for the month ended 5 March 2017.

HMRC announces new support for mid-sized businesses

23 Feb, 2017

HMRC has used the publication of a new corporate report to announce new support services to the 170,000 mid-sized businesses operating in the UK. These businesses play an important role in developing entrepreneurship and creating new jobs. Mid-sized businesses are defined as those that have a turnover of more than £10 million and/or more than 20 employees. HMRC estimates that 19% of the UK workforce is employed by mid-sized businesses.

HRMC plans to add the following services in addition to its existing mid-sized business service offerings:

Using the Lifetime ISA

23 Feb, 2017

The new Lifetime ISA will be available from April 2017. The Lifetime ISA is designed to help those aged between 18 and 40 to save for a new home or for their retirement. The new scheme will see the government provide a bonus of 25% on yearly savings of up to £4,000 and these benefits continue until the saver's 50th birthday. This could mean an extra £1,000 for every £4,000 saved annually from the age of 18 to 50. In total this could see savers who invest the maximum contributions of £128,000 receive a maximum government bonus of £32,000.

Pension automatic enrolment

23 Feb, 2017

Automatic enrolment for workplace pensions is intended to encourage employees to start making provision for their retirement with employers, with government contributing to make a larger pension pot.

The timetable for employers to begin enrolling their staff started with the UK’s largest businesses in 2012, followed by medium, and then small and micro companies. It is expected that all employers will be part of the scheme by early 2018.

Minimum wage increases

23 Feb, 2017

The new National Minimum Wage (NMW) and National Living Wage (NLW) rates are due to come into effect on 1 April 2017. This is the first time that the NMW and NLW rates will be uprated in parallel. Historically, the NMW increased annually in October and explains the smaller than usual increase in the NMW as the last increases were only effective on 1 October 2016.

Genuine HMRC email alert

23 Feb, 2017

HMRC has issued an advisory note to let employers know that it is in the process of emailing an employer alert. These emails are headed Important information for employers and refer to Employer Bulletin 64. These emails are genuine and include valid links to pages on the GOV.UK website.

Online database of employment tribunal decisions goes live

20 Feb, 2017

The government’s promised new online database of employment tribunal decisions has finally gone live. It covers employment tribunal decisions in England, Wales and Scotland. At the moment, it includes 2017 decisions, plus some from 2016 and a couple from 2015. It is not yet known to what extent other existing decisions will be added to the database.

It has a search facility enabling users to search for particular decisions and it also has a facility allowing users to subscribe to email alerts.

Registration for online apprenticeship service is now open

20 Feb, 2017

The apprenticeship levy will come into force on 6 April 2017 and it requires UK employers to pay 0.5% of their wage bill that is in excess of £3 million to fund the costs of apprenticeship training and assessment. Businesses in England which are subject to the levy should now create an online “apprenticeship service” account as the registration process is officially open. The apprenticeship service is the platform through which payment of the apprenticeship levy will be managed. The new system for apprenticeship funding in England will then begin to operate from 1 May 2017.

Pension auto-enrolment penalties

16 Feb, 2017

Automatic enrolment into workplace pensions has been rolling out across the UK since 2012 beginning with the largest employers in the country. The first batch of small and micro employers started to enrol in the scheme in mid-2015. There are estimated to be 1.8 million small and micro employers in the UK.  It is expected that all employers will be part of the scheme by early 2018.

The Apprenticeship Levy

16 Feb, 2017

The new Apprenticeship Levy comes into effect from April this year at a rate of 0.5% of the employer's 'pay bill'. To exclude smaller employers a £15,000 annual allowance can be claimed. The effect of this limit means that only employers with a pay bill in excess of £3 million will be required to contribute to the levy. The £3 million limit also applies to companies who are connected to other companies or charities for Employment Allowance which in total have an annual pay bill of more than £3 million.