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Revised advisory fuel rates 1 September 2015

Posted by: CarolineMeredith on September 1st, 2015

H.M. Revenue and Customs (HMRC) have published the latest advisory fuel rates relating to mileage payments for business travel in company cars. These are as follows:

Engine size Petrol LPG
1400cc or less 11p ↓ 7p ↓
1401cc to 2000cc 14p ↔ 9p ↔
Over 2000cc 21p ↔ 14p ↔

 

Engine size Diesel
1600cc or less 9p ↓
1601cc to 2000cc 11p ↓
Over 2000cc 13p ↓

The changes this quarter are highlighted in red above.

The new rates will be effective from 1 September 2015. However for the first month employers may continue to use the previously published rates if they choose to.

These rates will be reviewed again in August 2015 and any changes made will be effective from 1 September 2015. The revised fuel rates will be published on the fuel rates page on the HMRC website when they are released.

Advisory fuel rates can be used to calculate the following:

  1. Reimbursement to employees of fuel used for business travel in a company car;
  2. Repayment by employees of fuel used for personal travel in a company car;
  3. Allowable input VAT claims on business mileage claims in personal cars made by employees.

A more detailed explanation of the use of these rates is on the HMRC website.

The rates applying for earlier periods are also on the HMRC website.

If you have any questions regarding the use of advisory fuel rates or mileage payments please contact us.

Revised advisory fuel rates 1 June 2015

Posted by: edwinsmith on May 31st, 2015

H.M. Revenue and Customs (HMRC) have published the latest advisory fuel rates relating to mileage payments for business travel in company cars. These are as follows:

Engine size Petrol LPG
1400cc or less 12p ↑ 8p ↔
1401cc to 2000cc 14p ↑ 9p ↓
Over 2000cc 21p ↑ 14p ↔

 

Engine size Diesel
1600cc or less 10p ↑
1601cc to 2000cc 12p ↑
Over 2000cc 14p ↓

The changes this quarter are highlighted in red above.

The new rates will be effective from 1 June 2015. However for the first month employers may continue to use the previously published rates if they choose to.

These rates will be reviewed again in August 2015 and any changes made will be effective from 1 September 2015. The revised fuel rates will be published on the fuel rates page on the HMRC website when they are released.

Advisory fuel rates can be used to calculate the following:

  1. Reimbursement to employees of fuel used for business travel in a company car;
  2. Repayment by employees of fuel used for personal travel in a company car;
  3. Allowable input VAT claims on business mileage claims in personal cars made by employees.

A more detailed explanation of the use of these rates is on the HMRC website.

The rates applying for earlier periods are also on the HMRC website.

If you have any questions regarding the use of advisory fuel rates or mileage payments please contact us.

Abolition of Employers National Insurance Contributions (NICs) for under 21s

Posted by: edwinsmith on April 15th, 2015

From 6 April 2015 employers with employees under 21 will no longer have to pay Employer NICs on earnings up to the upper earnings limit (2015/16 £42,385).

The zero rate won’t apply to Class 1A or Class 1B NIC’s – e.g. where employee has a chargeable benefit in kind for NIC purposes from employment.

This measure will not affect the individual’s state pension entitlement.

Employers need to be aware that this change has resulted in new NIC category letters and if employing someone aged over 16 but under 21 then a new NIC category letter will need to be selected. It is the employer’s responsibility to ensure the correct letter is selected.

The 7 categories are:

  1. M - not contracted-out standard rate contributions
  2. Z - not contracted-out deferred rate contributions
  3. Y - mariners not contracted-out standard rate contributions
  4. P - mariners not contracted-out deferred rate contributions
  5. V - mariners contracted-out salary related contributions
  6. I - contracted-out salary related standard rate contributions
  7. K - contracted-out salary related deferred rate contributions

Three of the new letters (V, I and K) will be removed in April 2016 in line with the ending of ‘contracted-out’ status in relation to salary-related occupational pension schemes.

For full details please refer to HMRC - Abolition of Employers NICs for under 21s

Please contact us  for further advice on operating payroll etc.

Revised advisory fuel rates 1 March 2015

Posted by: edwinsmith on March 31st, 2015

H.M. Revenue and Customs (HMRC) have published the latest advisory fuel rates relating to mileage payments for business travel in company cars. These are as follows:

Engine size Petrol LPG
1400cc or less 11p ↓ 8p ↓
1401cc to 2000cc 13p ↓ 10p ↓
Over 2000cc 20p ↓ 14p ↓

 

Engine size Diesel
1600cc or less 9p ↓
1601cc to 2000cc 11p ↓
Over 2000cc 16p ↓

The changes this quarter are highlighted in red above.

The new rates will be effective from 1 March 2015. However for the first month employers may continue to use the previously published rates if they choose to.

These rates will be reviewed again in May 2015 and any changes made will be effective from 1 June 2015. The revised fuel rates will be published on the fuel rates page on the HMRC website when they are released.

Advisory fuel rates can be used to calculate the following:

Reimbursement to employees of fuel used for business travel in a company car;
Repayment by employees of fuel used for personal travel in a company car;
Allowable input VAT claims on business mileage claims in personal cars made by employees.
A more detailed explanation of the use of these rates is on the HMRC website.

The rates applying for earlier periods are also on the HMRC website.

If you have any questions regarding the use of advisory fuel rates or mileage payments please contact us.

PAYE/NIC RTI late filing and payment penalties – update and new concessions

Posted by: edwinsmith on February 24th, 2015

Late filing penalties

Employers with less than 50 employees should be reminded that PAYE late filing penalties will apply to them from 6 March 2015. These employers have previously benefitted from a concession introduced last October for late filing penalties ( Edwin Smith article -PAYE late filing concessions) but see below for continuing reporting concession for Micro Employers (less than 10 employees with PAYE schemes registered before 6 April 2014).

HMRC have introduced a new concession for employers and HMRC will not charge penalties for delays of up to three days in filing PAYE information.

Any employer who has incurred an in-year late filing penalty between 6 October 2014 and 5 January 2015 where they were less than three days late can appeal online against the penalty by completing the “Other” box and adding “Return filed within 3 days”.

Micro Employers concession – These employers are allowed to make PAYE RTI submissions by the 5 of each month and not on or before any payments made within the month and this concession is planned to end April 2016.

Late payment penalties

Automatic penalties for late PAYE payments were due to start from 6 April, but HMRC have recently announced that late payment penalties will continue to be reviewed on a risk- assessed basis rather than be issued automatically.

As a reminder refer to the HMRC PAYE/NIC late payments  that detail the penalties that can be incurred.

HMRC have also announced measures  to prevent the unnecessary penalties being issued, HMRC will be closing around 15,000 PAYE schemes next month that have not made a PAYE report since April 2013 and which appear to have ceased.

HMRC will write to the affected schemes to tell them about the planned closure and what to do if they are, or should be, operating PAYE.

Please contact us if you require any advice or assistance with PAYE RTI payroll submissions

Filed under: Employers, PAYE

Revised advisory fuel rates 1 December 2014

Posted by: edwinsmith on January 1st, 2015

H.M. Revenue and Customs (HMRC) have published the latest advisory fuel rates relating to mileage payments for business travel in company cars. These are as follows:

Engine size Petrol LPG
1400cc or less 13p ↓ 9p ↔
1401cc to 2000cc 16p ↔ 11p ↔
Over 2000cc 23p ↓ 16p ↔

Engine size Diesel
1600cc or less 11p ↔
1601cc to 2000cc 13p ↔
Over 2000cc 16p ↓

The changes this quarter are highlighted in red above.

The new rates will be effective from 1 December 2014. However for the first month employers may continue to use the previously published rates if they choose to.

These rates will be reviewed again in February 2015 and any changes made will be effective from 1 March 2015. The revised fuel rates will be published on the fuel rates page on the HMRC website when they are released.

Advisory fuel rates can be used to calculate the following:

Reimbursement to employees of fuel used for business travel in a company car;
Repayment by employees of fuel used for personal travel in a company car;
Allowable input VAT claims on business mileage claims in personal cars made by employees.
A more detailed explanation of the use of these rates is on the HMRC website.

The rates applying for earlier periods are also on the HMRC website.

If you have any questions regarding the use of advisory fuel rates or mileage payments please contact us.

Small Employers – RTI penalty concession

Posted by: edwinsmith on September 17th, 2014

HMRC have recently announced that they will now relax penalty regulations for small employers with 49 or fewer employees in respect of PAYE RTI submissions. This is further to an article   we published in August 2014 concerning the late filing penalties to be introduced from October in respect of PAYE RTI submissions.

This will mean for small employers that the penalty regulations for making a late PAYE RTI submission will be delayed and will not take effect until March 2015.

Small employers should be aware that the Month 12 submission for 2014/15 will need to be made on time to avoid a penalty. There is a general first month concession of a penalty not being charged for a late submission for the first month in each tax year but this will not apply for small employers in March 2015.

This small employer concession should not be confused with the separate concession for micro employers with or nine or fewer employees (PAYE schemes registered before 6 April 2014). As a reminder these employers are allowed to make PAYE RTI submission by the 5 of each month and not on or before any payments made within the month.

For employers with 10 to 49 employees technically you still need to make a PAYE RTI submission on or before the payments within the tax month but with the new concession there will not be a penalty now until March 2015 for late submissions.  

HMRC have issued a help sheet for PAYE late filing penalties which provides further information.

Please contact us if you require any advice

Filed under: Business, Employers, PAYE

Revised advisory fuel rates 1 September 2014

Posted by: edwinsmith on September 5th, 2014

H.M. Revenue and Customs (HMRC) have published the latest advisory fuel rates relating to mileage payments for business travel in company cars. These are as follows:

Engine size Petrol LPG
1400cc or less 14p ↔ 9p
1401cc to 2000cc 16p ↔ 11p ↔
Over 2000cc 24p ↔ 16p ↔

 

Engine size Diesel
1600cc or less 11p ↓
1601cc to 2000cc 13p ↓
Over 2000cc 17p ↔

 

The changes this quarter are highlighted in red above.

The new rates will be effective from 1 September 2014. However for the first month employers may continue to use the previously published rates if they choose to.

These rates will be reviewed again in November 2014 and any changes made will be effective from 1 December 2014. The revised fuel rates will be published on the fuel rates page on the HMRC website when they are released.

Advisory fuel rates can be used to calculate the following:

  1. Reimbursement to employees of fuel used for business travel in a company car;
  2. Repayment by employees of fuel used for personal travel in a company car;
  3. Allowable input VAT claims on business mileage claims in personal cars made by employees.

A more detailed explanation of the use of these rates is on the HMRC website.

The rates applying for earlier periods are also on the HMRC website.

If you have any questions regarding the use of advisory fuel rates or mileage payments please contact us.

Filed under: Business, Company, Employers, PAYE, VAT

New timetable for RTI penalties and interest – October 2014 late filing penalties

Posted by: edwinsmith on August 29th, 2014

Further to our article earlier this year on RTI penalties being phased in, the automatic ‘in-year’ late filing penalty will commence from 6 October 2014. To ensure a late filing penalty is not issued all filings due must be up to date as at 5 October 2014. Do not forget that if no employees have been paid in a tax period an EPS must be filed.

These rules apply to each PAYE scheme rather than each employer so an employer must ensure that all PAYE schemes submissions are up to date as at 5 October 2014 and filed on time thereafter.  Update - there is now  a    until March 2015 for employers with 49 employees or under.

Penalties will apply where submissions do not appear to have been filed by the due date, and may be issued where one of the following applies:

  1. payment information is not received as expected on an FPS  
  2. HMRC has not been told that no employees have been paid by sending an EPS

No penalty will arise for the first month in each tax year where there is a filing default. This means there are a maximum number of 11 fixed penalties per tax year that can be charged for filing failures.

New employers will not be issued with a penalty if their first FPS is received within 30 days of making their first payment to an employee. But after that, normal penalties rules will apply if an FPS is filed late.

The size of the late filing penalties depends on the number of employees within the PAYE scheme.

Number of employees Amount of the monthly filing penalty per PAYE scheme
1 - 9 £100
10 - 49 £200
50 - 249 £300
250 or more £400

HMRC will use the latest information available to determine the number of employees, and the size of the filing penalty for each period where a return is late.

Ordinarily, HMRC will send employers a filing penalty notice quarterly in July, October, January and April, where appropriate. These penalty notices show the amount of the filing penalty for each tax month identified in that quarter. For example, a penalty notice in July will show any filing penalties arising in the first quarter of the tax year - that is, month 1 (6 Apr to 5 May), month 2 (6 May to 5 June) and month 3 (6 June to 5 July). The first notices should be due in January 2015. 

Where a return is late for three months or more and the information that it would have contained has not been provided on a later return, a further penalty may be charged. This additional penalty is set at 5% of the tax/NICs that should have been shown on the late return. This will be used for the most serious and persistent failures.

All penalties are due for payment 30 days following the date of the penalty notice. Penalties not paid on time will attract interest. If you disagree with the penalty, you have a right of appeal. Further information can be obtained here.

The next phase of the RTI penalty regime is scheduled for April 2015 when automatic ‘in-year’ late payment penalties will commence. We will detail these nearer the time.

 Please contact us for further advice

Filed under: Business, Employers, PAYE

National minimum wage rate from 1 October 2014

Posted by: edwinsmith on August 21st, 2014

There are changes to the national minimum wage (NMW) rates in some categories from 1 October 2014. The new rates per hour are as follows with the current rates shown in brackets:

  1. £6.50 (£6.31) - the main rate for workers aged 21 and over
  2. £5.13 (£5.03) - the 18-20 rate
  3. £3.79 (£3.72) - the 16-17 rate for workers above school leaving age but under 18
  4. £2.73 (£2.68) - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship

If you have any queries please contact us