Scotland the brave – Scottish Income tax changes proposed for 2020
Proposed Statutory Payment Rates for April 2020
The Low Pay Commission’s 2019 recommendations complete the path originally set out in 2015.
— Read on www.gov.uk/government/news/national-living-wage-to-hit-60-per-cent-target-in-april
Many thanks to Maria Hennesey and McDonalds HQ for hosting our London IReeN Meetings on Wednesday 20th November 2019. Maria is one of the founding committee members of IReeN.
We welcomed from HMRC: Jerry Catterson and Rob Heppell to provide an update on electronic business matters, data quality and public domain legislated change for 2020.
During this election period of purdah, no new information could be shared.
Simon Parsons of SD Worx, chair of IReeN updated the attendees on IReeN matters, potential changes to RTI new fields and an IReeN view on the business process for payroll consequence on new initiatives assuming they are progressed following the general election and formation of a new government.
Simon then went on to cover the changes to holiday pay and recent court rulings. The unpaid britain report has identified that 1.8m workers are not receiving their full holiday pay rights. BEIS guidance issued in Feb 2019 and updated in August will see many employers not paying holiday correctly. Equally, a new November guide outlines changes following the court of appeal ruling that percentage accrual schemes are unlawful. The 12.07% method does not result in the correct 12 weeks average pay or correct holiday entitlement.
Andy Nicholls of The Pension Regulator outlined the latest new on pensions, enforcement and the challenge on employer understands on the Net Pay Arrangement v Relief At Source tax relief schemes.
The event was repeated on 27th November in Manchester at the SD Worx offices near Media City, Salford. And then SD Worx at their Braehead Glasgow offices on Wednesday 4th December.
Welcome to the new Home of IReeN. From the former IReeN.org.uk to the new web address IReeN.uk.
IReeN is the user group for all UK employers who electronic exchange with HM Revenue and Customs (formerly the Inland Revenue).
The IReeN name originates from ‘Inland Revenue electronic exchange Network’.
Originally employers were invited to file annual P14 or P35 mag media submissions at tax year end. Electronic Data Interchange (EDI) via ISDN started in 1999 with eXtensible Markup Language (XML) being introduced a year later).
Back in 2002 and at the encouragement of then Inland Revenue (IR) Electronic Business Unit (EBU) head Joan Woods, the formation of a user group for employers and pension payrolls who electronic exchange (ElEx) along with agents, payroll service providers and bureaux was encouraged at an event at Aston Villa Football Club.
Software that met test criteria were able to be awarded the Electronic Exchange mark.
Following proposals by Lord Carter, electronic exchange was expanded initially with financial encouragement, and then but then with phased compulsion.
The HMRC launched the payroll standard, meant to test desktop software for small employers ensuring capability for electronic filing of P14 and P35 tax year end declarations along with in year filing of P45, P46, Pension notifications and the employer benefiting from electronic tax code notifications. The payroll standard accreditation ended in 2012.
Now all employers (with limited exception) came under new in year filing obligation with the 2012 pilot and then 2013 compulsory Real Time Information (RTI) with regular Full Payment Submission (FPS) and monthly Employer Payment Submission (EPS) along with the monthly pay-over of tases and National Insurance contributions to the collector of taxes.
RTI has been problematical. The process sometimes complicated and difficult. The need for coordinated representation between the users, UK plc, and HMRC has never been greater in improving electronic exchange for both governments, employers and pensions payers. And definitely for improving the experience of UK tax payers whether employed receding payment of wages, or pensioners in receipt of pension payments.