We received this cry for help recently – ‘My employee is entitled to Statutory Maternity Pay, but we can’t afford to pay it – what can we do?‘
Help is available from HMRC
If you can’t afford to make payments
You can apply for HM Revenue and Customs (HMRC) to pay you in advance if you can’t afford to make statutory payments.
How to apply for advance payment
Apply online to be paid in advance for:
- Statutory Maternity Pay (SMP)
- Statutory Paternity Pay
- Statutory Adoption Pay
- Statutory Shared Parental Pay (ShPP)
You can apply up to 4 weeks before you want the first payment
You can find more details here
The P45 is a certificate which contains earnings and tax payments over the financial tax year up until when an employee leaves a job, and it is issued to employees by the employer. Form P45 shows how much tax has been paid on their salary for the current tax year.
You must give all employees a P45 when they stop working for you. You can either:
You can’t download blank P45 forms
You can’t get a replacement P45. Instead, you can use a ‘Starter Checklist’ (link below) or ask your employee for the relevant details about their finances to send to HM Revenue and Customs (HMRC)
Use this form if you’re an employer and need to record information about a new employee for PAYE
You must tell HM Revenue and Customs (HMRC) when you take on a new employee and be registered as an employer.
Before you pay your new starter follow these steps:
Further information can be found here
With effect from the 2016 to 2017 tax year there are 2 plan types for student loan repayments:
- plan 1 with a 2016 to 2017 threshold of £17,495 (£1,457 a month or £336 per week)
- plan 2 with a 2016 to 2017 threshold of £21,000 (£1750 a month or £403 per week)
If you are unsure which plan to use, it is easy to find out by filling in the online survey here
More guidance for employers can be found here
If your employee’s tax code has ‘W1’ or ‘M1’ at the end
W1 (week 1) and M1 (month 1) are emergency tax codes and appear at the end of an employee’s tax code, eg ‘577L W1’ or ‘577L M1’. Calculate your employee’s tax only on what they are paid in the current pay period, not the whole year.
Updating for the new tax year
HM Revenue and Customs (HMRC) will tell you between January and March about any new tax codes to use for employees in the new tax year. This starts on 6 April.
If an employee’s tax code isn’t changing, HMRC won’t contact you and you should carry forward the employee’s tax code to the new tax year.
If your employee’s tax code ends with ‘M1’ or ‘W1’ (‘month 1’ or ‘week 1’), don’t carry this part of the code into the new tax year.
Click here for more information
As the financial year comes to an end on 5th April 2016, it’s time to look at the tasks that employers running a payroll need to complete for Her Majesty’s Revenue and Customs (HMRC). You need to report to HMRC on the previous tax year (which ends on 5 April), give your employees a P60 and prepare for the new tax year, which starts on 6 April 2016
HERE ARE THE 5 ESSENTIAL TASKS AND TIMESCALE:
|What you need to do
|Send your final payroll report of the year
||On or before your employees’ payday
|Update employee payroll records
||From 6 April
|Update payroll software
||From 6 April
|Give your employees a P60
||By 31 May
|Report employee expenses and benefits
||By 6 July
For more information detailed click here
GOOD NEWS FOR EMPLOYERS
Businesses will have their employer National Insurance bill cut by another £1,000 from April 2016, as the Employment Allowance rises from £2,000 to £3,000. The Employment Allowance gives businesses and charities a cut in the employer National Insurance they pay.
This means that businesses and charities will be able to employ 4 people full time on the National Living Wage and pay no National Insurance at all.