Member Since: 7th Aug 2002
Kate is a technical writer, editor and lecturer on all aspects of employing people - primarily payroll and HR matters.
Owner Kate Upcraft Consultancy Ltd
16th Jan 2017
Another group who may be subject to HICBC in April 2017 are those whose salary goes up as a result of salary sacrifices being unwound as tax free childcare rolls out or due to the restrictions coming in, so this population of unaware taxpayers will undoubtedly grow
12th Jan 2017
Actually it's not a rate effective 1st April but the first pay period that starts in or after 1st April so as 1st is a Saturday it may be w/c 3rd. You don't split the week and pay one rate to 31st March then new rate for Saturday
20th Dec 2016
well it's not getting any easier, welsh income tax likely from April 2019! see https://www.gov.uk/government/publications/the-agreement-between-the-wel...
19th Dec 2016
it's all about whether you have more days in the tax year where you have a close connection with Scotland. It is HMRC's role to decide who is a Scottish taxpayer and to tell their employer. It is not an employer responsibility, one the to operate an S code once notified. There is no relevance in respect of where the employer is based
19th Dec 2016
the question is has HMRC actually found all the scottish taxpayers now? If you read this https://goo.gl/N9PT92 and from the NAO today https://goo.gl/bhY1BO you'll see the report that 420,000 were initially 'missing'. I meet taxpayers all the time who should have, but still don't have, an S prefix tax code. It's the problem with using employee address data via the RTI feed. We all know how corrupted that data is anyway when it arrives in HMRC's central systems. Of course address data is also to be used for allocating apprenticeship levy funds in May 2017
17th Nov 2016
Thanks for the comments, sadly I'm only given a small word count for these articles so whilst I could write a book about SSP, accounting web wouldn't be able to publish it and you wouldn't have time to read it! So to address your thoughts (briefly)
I am aware that SSP appears in lots of places but it's never stopeped the government rebranding anything before such as sick notes becoming fit notes, additional statutory paternity pay changing to shared parental pay soon after we'd implemyed it. My suggestion of national minimum sick pay simply describes what it is and distinguishes it from state funded statutory payments so employees value it as still paid by their employer. I think the rate provides an adequate earnings replacement taking into account cost pressures for businesses for employees already in respect of national living wage, auto enrolment and apprenticeship levy. I think there is merit still in waiting days and linking to limit liability and manage the cost of isolated days of absence but feel we need to look at phased return not interfering with SSP as we do with KIT and SPLIT days.
The medical treatment exemption means there is no BIK however the employee receives reimbursement i.e. By the employer paying the invoice or a cash reimbursement, whereas for other BIKs who makes the contract and pays the supplier dictates if section M or B of the P11d are in point or for a cash reimbursement via the payroll for tax and NI now that section N has been abolished for 16/17
22nd Oct 2016
I'm fascinated that the 'success' of RTI is claimed to have heralded these alleged statistical improvements. HMRC staff themselves tell agents and employers every day that no one can rely on the figures shown on business tax accounts as they bear no relation to the figures submitted through RTI, nor the payments made to HMRC by employers so I'd love to know how these figures are compiled. To me it's a fiction based on a fairytale. Given the tax receipts are supposed to dictate the Public Sector Borrowing Requirement I don't know how the Treasury sleep at night as I'd like to think by now they know how poor the PAYE data is. Of course it's the same PAYE data that is being used to close down tax credit clams and flex Universal Credit. Businesses, and the agents that support them, will step up to the mark and make MTD work from their end just as they have with RTI, the big question is will HMRC's systems be up to the job as recent history says not. If I hear one more mention of 'prompts and nudges' being the future of tax I think I'll scream, what we need is well constructed and tested central government systems that have been designed by practitioners not IT specialists.
17th Sep 2015
Wrong priority at the moment ?
As Chair of the RTI stakeholder taskforce, I'd like to see HMRC lobbying for resourced to fix the data corruption inherent in those legacy systems first. There is no point building a 'new middle layer', an agent online service or digital tax accounts if the core data is fundamentally corrupted with duplicated records and an unstable ETMP accounting system as is the case at present. Having corrupt data delivered back to you is hardly good customer service however clever the technology is. Last week the Minister told accounting web: "I think that there will always be an issue with whatever system that you have. But a more transparent tax system does lend itself to higher quality
data. The problems emerge more quickly," Yes minister they will emerge more quickly so I hope your civil servants have been honest with you about the state of RTI data at present before you try to build on that foundation to deliver HMRC's systems of tomorrow but even more importantly welfare reform in the shape of universal credit for 8m people
Kate Upcraft AMBCS
ISIS Support Services
5th Aug 2015
The MPAA doesn't apply to small pot commutations: see https://www.gov.uk/government/uploads/system/uploads/attachment_data/fil...
hope this helps
5th Aug 2015
it's all about the MPAA
It's an offence because once you flexibly access cash from your DC pension you are subject to the reduced Money Puchase Annual Allowance (MPAA) of £10k versus the normal annual allowance for pension tax relief of £40k. HMRC will get to know anyway potentially as from April of this year all pension payrolls when they process a flexi access or UPFL are asked to submit a marker on the FPS that accompanies the payment which is called 'flexibly accessing pension rights'. From April 2016 this marker is mandatory and we've been told that there will be even more detailed RTI reporting of withdrawn sums but the software developers have very little detail at present which is a worry as software needs signing off by December.