What’s new for employers 2011 Business Education & Support Team

What’s New for employers V2 | 2011 | 2 Contents Tax allowances. National Insurance rates. Statutory Payment rates. Additional Statutory Paternity Pay. Regional Employer NICs Holiday for New Businesses. Employer supported child care. Late payment Penalties. Miscellaneous.

What’s New for employers V2 | 2011 | 3 Tax allowances Personal allowance £ Tax code 747L. For P9X

What’s New for employers V2 | 2011 | 4 Tax bandwidths Basic Rate20%£1 to £35,000 Higher Rate40%£35,001 to £150,000 Additional Rate 50%£150,001 and above.

What’s New for employers V2 | 2011 | 5 Paying tax at the 50% rate in % rate introduced from 6 April 2010 for taxpayers with taxable income of more than £150,000. Right amount of tax should be deducted if income is from one source only…. ….but if from two or more sources, an underpayment is likely to arise. HMRC is writing to such taxpayers warning them of the potential underpayment; letter will be headed ‘Paying tax at the 50% rate in ’.

What’s New for employers V2 | 2011 | 6 New tax code From Code D1.

What’s New for employers V2 | 2011 | 7 Coding changes - employees From Code 0T week1/month1.

What’s New for employers V2 | 2011 | 8 Coding changes - pensions From Code 0T week1/month1.

What’s New for employers V2 | 2011 | 9 National Insurance limits from 6 April 2011 £ per week Tax year Tax year Lower Earnings Limit £97£102 Primary Threshold £110£139 Secondary Threshold £110£136 Upper Accrual Point £770£770 Upper Earnings Limit £844£817

What’s New for employers V2 | 2011 | 10 National Insurance Contributions (NIC) rates from 6 April 2011 Tax year Tax year Class 1 Employee NIC11%12% Class 1 Employer NIC12.8%13.8% Class 1A Employer NIC12.8%13.8% Class 1B Employer NIC12.8%13.8% Additional NIC 1% 2%

What’s New for employers V2 | 2011 | 11 Abolition of Contracted Out Schemes Contracted Out Money Purchased Schemes (COMP) schemes, Appropriate Personal Pension (APP) Schemes and APP Stakeholder Schemes: All close from 6 April NI Category letters F,G,H,K,V and S cease to be valid. All other schemes are not affected. For more information go to:

What’s New for employers V2 | 2011 | 12 Statutory Payment Rates Statutory Sick Pay£81.60.

What’s New for employers V2 | 2011 | 13 Statutory Payment Rates Statutory Maternity Pay£ (Standard rate) Statutory Adoption Pay£

What’s New for employers V2 | 2011 | 14 Statutory Paternity Pay Ordinary Statutory Paternity Pay£ Additional Statutory Paternity Pay£

What’s New for employers V2 | 2011 | 15 Small employer compensation Small employers relief (if applicable) 3% Statutory Maternity Pay, Ordinary Statutory Paternity Pay, Additional Statutory Paternity Pay and Statutory Adoption Pay

What’s New for employers V2 | 2011 | 16 Employer supported childcare – scheme conditions No longer need to be generally available to all.

What’s New for employers V2 | 2011 | 17 Employer supported childcare – tax relief Changes for employees joining after 6 April Employer will need to carry out a basic earnings assessment. Equalizes the tax saving available for all employees regardless of the rate of tax they pay. Existing scheme members are unaffected by the changes.

What’s New for employers V2 | 2011 | 18 Plastic National Insurance number (NINo) cards HMRC has ceased sending out replacement cards; a letter is sent instead. We expect to withdraw plastic cards around October If an employee can’t produce a NINO, go to: or

What’s New for employers V2 | 2011 | 19 Equalisation of State Pension age (SPa) From 6 April 2010 the age at which women reach SPa will gradually rise to become the same as it is for men – 65. The change will be phased in between April 2010 and April All women born between 6 April 1950 and 5 April 1955 are affected. All women born between 6 April 1955 and 5 April 1959 will reach SPa at age 65.

What’s New for employers V2 | 2011 | 20 Equalisation of State Pension age (SPa) For further information, go to: Employers Employees StatePension/DG_

What’s New for employers V2 | 2011 | 21 Regional employer NICs holiday for new business Available to eligible new businesses which start up in the period 22 June 2010 to 5 September The new business must make an application to take part in the scheme. For more information

What’s New for employers V2 | 2011 | 22 National Minimum Wage Changes effective from 1 January 2011: Travel and subsistence expenses that are eligible for tax relief will not count towards NMW pay. Further details can be found at:

What’s New for employers V2 | 2011 | 23 Basic PAYE Tools – formerly Employer CD-ROM CD-ROM updates from November From February 2011 – Basic PAYE Tools. CD-ROM November update Basic PAYE Tools

What’s New for employers V2 | 2011 | 24 Basic PAYE Tools If you used the Employer CD-Rom during , in order to successfully transfer data across to the new tools, you must download the latest update to the 2010 CD-ROM. Go to: Technical specifications required to run the Basic PAYE Tools can be found in the Online Employer Bulletin which was published on 14 February.

What’s New for employers V2 | 2011 | 25 Employer alert Go to Each registration will last for up to one year, then we will you to re-register.

What’s New for employers V2 | 2011 | 26 Employer alert You will need: employer PAYE reference employer name an address phone number and contact name. NB: This is not the same as registering for HMRC’s Online Services.

What’s New for employers V2 | 2011 | 27 Reminder for employers - online filing in year forms From 6 April 2011 Virtually all employers must send their Starter and Leaver forms online.

What’s New for employers V2 | 2011 | 28 Employer Annual Return Electronic P60.

What’s New for employers V2 | 2011 | 29 Employer Annual Return Is a NIL Return or no Return required?

What’s New for employers V2 | 2011 | 30

What’s New for employers V2 | 2011 | 31 Employees - subsistence expenses The benchmark scale rates that apply from 6 April 2009 are as follows: DescriptionAmount (up to) Breakfast rate£5 One meal (5 hour) rate£5 Two meal (10 hour) rate£10 Late evening meal rate£15

What’s New for employers V2 | 2011 | 32 Employees - changing company car From April 2011, we will once again accept online notifications of company car changes on form P46(Car).

What’s New for employers V2 | 2011 | 33 Company cars - advisory fuel rates for company cars from 1 December 2010 Engine sizePetrol, hybrid petrol and electric DieselLPG 1400cc or less13 pence12 pence9 pence 1401cc to 2000cc 15 pence12 pence10 pence over 2000cc21 pence15 pence

What’s New for employers V2 | 2011 | 34 Company cars - advisory fuel rates for company cars from 1 March 2011 Engine sizePetrol, hybrid petrol and electric DieselLPG 1400cc or less14 pence13 pence10 pence 1401cc to 2000cc 16 pence13 pence12 pence over 2000cc23 pence16 pence17 pence

What’s New for employers V2 | 2011 | 35 Changing the way HMRC handles incoming mail We intend to scan incoming post. Some original documents will be returned. Others will be securely destroyed unless you ask for their returned within 40 days of receipt.

What’s New for employers V2 | 2011 | 36 HMRC launches consultation Real Time Information (RTI). Improving the operation of PAYE. The consultation will run until 28 February 2011.

What’s New for employers V2 | 2011 | 37 Payslip booklet now called payment booklet Could you do without yours? For more information

What’s New for employers V2 | 2011 | 38 New late payment penalties for PAYE The new penalties will apply to any employer or contractor who does not pay on time and in full. Tips Check what day of the week the 22nd falls on. Check with your bank how long it takes payments to clear. Unless paying by CHAPS, put a reminder in your diary/calendar at least 4 working days before this deadline. Don’t leave it to the last minute.

What’s New for employers V2 | 2011 | 39 Business Payment Support Line If you have a bill you can’t pay Contact HMRC Business Payment Support Line

What’s New for employers V2 | 2011 | 40 Miscellaneous VAT The standard rate from 4 January 2011 is 20%.

What’s New for employers V2 | 2011 | 41 VAT Online Filing 2012 Currently you have to file your VAT returns online and pay electronically if: You registered your business for VAT after 1 April Your annual VAT inclusive turnover is more than £100,000. From 1 April 2012 this requirement will apply to ALL businesses.

What’s New for employers V2 | 2011 | 42 EmployerTalk Bitesize 16 February Watford 2 MarchDoncaster 10 MarchBurnley 16 MarchChester 22 MarchAberdeen.

What’s New for employers V2 | 2011 | 43 Anyone self-employed? Changes from April 2011 Payments for your Class 2 National Insurance contributions will become due on 31 January and 31 July the same as a Self Assessment tax bill.

What’s New for employers V2 | 2011 | 44 Capital Allowances from 1 April 2012 Annual Investment Allowance£25,000 Writing Down Allowance18% Special rate8%

What’s New for employers V2 | 2011 | 45 Limited Companies Registering for HMRC’s Online Services.

What’s New for employers V2 | 2011 | 46

What’s New for employers V2 | 2011 | 47 Tax Help factsheets For more information

What’s New for employers V2 | 2011 | 48 Further help and guidance Business Link Basic PAYE Tools New Employer Helpline Employer Orderline Business Education & Support Team Agent Account Managers

What’s New for employers V2 | 2011 | 49 Contacting HMRC There is now just one number for employees to ring for help with tax enquiries And only one for employers And we have made changes to our Contact Centre opening hours: No Sunday opening. Monday – Friday: 8am to 8pm. Saturday: 8am to 4pm.

What’s New for employers V2 | 2011 | 50 Today we have covered Tax allowances. NIC rates. Statutory Payment rates. Additional Statutory Paternity Pay. Regional Employer NICs Holiday for New Businesses. Employer supported child care. New Penalties. Miscellaneous.

What’s New for employers V2 | 2011 | 51 Evaluation And finally, to assist us in improving our workshops would you please complete the evaluation sheet.