April 2009 Newsletter

FOREWORD

WELCOME TO PRIME CHARTERED ACCOUNTANTS APRIL E-NEWS.

As we begin the new payroll year, this particular e-news bulletin focuses on a range of payroll matters, including changes in payment methods for fees payable to HMRC and new statutory payment rates for the forthcoming tax year.

Here at Prime, many of our clients have already chosen to outsource their payroll requirements to us, as they recognise the benefits of a third party keeping up to date with the ever increasing changes in legislation affecting payroll, enabling them to concentrate fully on running their business.

We would be more than happy to discuss any of the issues raised in this e-news with you, or alternatively provide you with a free quotation for handling your payroll. Simply contact us here.

Look out for the special e-news on Thursday this week, summarising the Budget!

Laurence Moore, Chairman, Prime Group

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National Insurance Contributions from April 2009

From 6 April 2009, changes have been made to how employers will have to record National Insurance Contributions (NICs) due to changes to the State Second Pension. Employers will have to record NICs in four earnings bands, with the introduction of the Upper Accrual Point.

HMRC’s P11 Calculator, on their CD-ROM, has been updated to include all four earnings bands shown above.

It may be worth checking that, if you use payroll software, your provider has made these NICs changes available as part of the annual upgrade.

HMRC’s paper form P11 Deductions Working Sheets have been updated. The 2009/10 version can be obtained from the Employer Orderline. Old stocks of P11 sheets should be destroyed. Further help on completing the 2009/10 P11 can be found in the Employer Helpbook E11 Starting the Tax Year.

As always, if we can help you with your payroll, or would like to consider transferring the worry of complying with constant changes in legislation to Prime Paysolve, email Monima Simpson-Smith or call 024 7655 4324.

Internet link: HMRC employer bulletin

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New Statutory Payment Rates for 2009/10

The new Statutory Payment Rates for 2009/10 have been announced (subject to Parliamentary approval). The new rates are as follows:

• Statutory Sick Pay (SSP) weekly rate - £79.15 for payment weeks beginning on or after 6 April 2009
• Statutory Maternity Pay (SMP) – standard rate £123.06 for payment weeks beginning on or after 5 April 2009
• Statutory, Adoption and Paternity Pay (SAP, SPP) – £123.06 for payment weeks starting on or after 5 April 2009
• Employers who do not qualify for Small Employers’ Relief will be able to continue to recover 92% of the SMP/SAP/SPP. Employers who do qualify for the relief will be able to recover 104.5% of the SMP/SAP/SPP.

A small employer is one who paid (or was liable to pay) total gross Class 1 NICs of £45,000 or less in the individual’s qualifying tax year.

In addition, a new Employer Helpbook E19 is now available. This brings together all the information on Paternity Pay. The other Helpbooks now cover Sick Pay (E14), Maternity Pay (E15) and Adoption Pay (E16).

Internet link: HMRC employer bulletin

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'How to Pay' changes

During 2009, HMRC will be changing the bank accounts into which businesses and individuals make payments. These changes will be phased in throughout the year but HMRC will keep businesses and taxpayers informed of any changes.

The first account change will be on the Pay As You Earn (PAYE) payment booklets issued from February 2009, which should be used from April payments onwards for the 2009/10 tax year.

Other changes will appear within HMRC’s ‘How to Pay’ instructions. An updated version of these instructions, including the revised bank account and sort code details, will be published on HMRC’s website as changes are made.

If you make payments to HMRC via BACS and banks online systems, the new details will be provided in the ‘How to Pay’ instructions when the changes are made.

Internet link: HMRC employer bulletin

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PAYE changes

HMRC have issued a reminder to employers with 50 or more employees that they must send their employee starter and leaver information - P45s, P46s and P46(Pen) for pensions - online from 6 April 2009. As always, failure to comply with these new rules could result in a penalty.

These employers also need to remember that their 2008/09 Employer Annual Returns must be submitted online to HMRC by 19 May.

If you would like any help in this area, please do get in touch – simply email Monima Simpson-Smith or call 024 7655 4324.

Internet link: HMRC press release

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HMRC warn of latest fraud attempt

HMRC are warning taxpayers of the latest fraud attempt to be reported to them.

Taxpayers are being sent an email asking them to 'update your account to the new EV SSL certification'. HMRC are warning that this is a scam email which is attempting to steal User IDs and Passwords. The email is being sent from hmrc@hmrc.gov.uk.

HMRC advise that you should never disclose personal information such as User IDs or Passwords and that anyone receiving a suspicious email should forward it to phishing@hmrc.gsi.gov.uk.

Internet link: HMRC guidance on security fraud attempts / Example email

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Dragons’ Den

Fancy applying? If so, visit http://www.bbc.co.uk/dragonsden/apply/ and fill your details in, or contact Julann Smyth at Julann.Smyth@bbc.co.uk or on 020 8576 1194.

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Disclaimer
This newsletter is published for the information of clients and other recipients of our email newsletters. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this newsletter can be accepted by the firm.