| The
new tax year is now under way and along with it comes the usual
changes in legislation. The most significant change is the introduction
of E-Filing, said to be the biggest change in the Inland Revenue
since the introduction of PAYE. We will outline the most appropriate
changes in this newsletter but if you have any concerns regarding
PAYE or NIC, you can always call us on our usual number. On that
note, and with many apologies for the short notice, our telephone
number will be changing on 17th May to 01424 739239. Our fax number
will remain the same. |
|
Electronic
payment of PAYE/NIC
All Employers with more than 250 employees
must send their monthly remittances electronically with effect from
6 April 2004. First payment will be due on 21 May 2004. The due
date has been extended from 19th to 22nd to acknowledge that an
employer may be disadvantaged as a result. Note: if you are registered
with Pro-Pay’s BACS bureau, we can transmit these payments for you.
|
|
Notice
to Temp/Recruitment Agencies
|
|
Notice to Temp/Recruitment Agencies With effect from 6 April you
will notice that we are automatically producing P45s for employees
who have not worked for 13 weeks. This is due to the change in IR
regulations 2003 stipulating that the agency ceases to employ an
agency worker at the end of a period of 3 months during which no
payments have been made. |
|
Duplicate
P60’s
|
| Duplicate
P60’s The Revenue has taken a fresh look at its policy on issuing
duplicate P60s and it now has no objection to employers giving duplicates
to their employees |
|
National
Minimum Wage
|
Just
a reminder!
£4.50 per hour for workers 22 plus
£3.80 per hour for workers 18-21
These rates took effect on 1.10.03
These rates will change again on 1st October 2004 with a new rate
being introduced for 16 & 17 Year olds |
|
|
Cash
Incentives
|
Did
you know that the Inland Revenue will be offering cash incentives
to small employers with effect from April 2004?
The good news is that commencing April 2004, the Inland Revenue
are introducing cash incentives over a period of 5 years to encourage
all businesses with less than 50 employees to file their year-end
returns by Internet. These are made up as follows:
| 2004/05
return |
£250 |
| 2005/06
return |
£250 |
| 2006/07
return |
£150 |
| 2007/08
return |
£100 |
| 2008/09
return |
£75 |
Compulsory
e-filing dates depend |
Students
and Tax
Do Students pay tax? Do Students pay National Insurance?
How to deal with students working for you raises a lot of questions.
In answer to the above, YES and YES. All income is subject to tax
and national insurance. Confusion arises out of which tax form a
student should
complete—P38(S) or P46. The answer again is quite simple.
If the student is working during term time ie at weekends and evenings,
then they must complete a P46. If the student is working during
Summer/Christmas/Easter vacations ONLY then they may complete a
P38(S). Hope this clears that one up for you. |
|
on
the number of employees an employer has.
| No
employees |
Which
Year |
Deadline |
| 250
or more |
2004/05 |
19
May 2005 |
| 50-249 |
2005/06 |
19
May 2006 |
| Less
than 50 |
2009/10 |
19
May 2010 |
|
You
should all shortly be receiving forms FBI2 authorising Pro-Pay to
act as your agent to file returns electronically. Please return
them to us as soon as possible.
We will then ensure that those employers with 250 employees or more
will comply with the new regulations and those employers with less
than 50 employees take advantage of the government incentives. |
Pro-Pay Limited
28 Wilton Road
Bexhill on Sea
East Sussex
TN40 1EZ
Tel: 01424 734267
Fax: 01424 733742
Email: info@pro-pay.co.uk |
