You may need to reopen the payslip thus making the employee 'live' for M12, then create a leaving date and submit an additional FPS. This will then let HMRC know they left your employment 31/03, and you should be able to issue a P45 - I haven't used Moneysoft, I use Brightpay and know I had to do that for an employee earlier in the year.
Agree with Johnt27 response. It is a notional VAT which cancels itself out, so affects boxes 1 and 4 for the VAT, and 6 and 7 for the net amount. This would be T15 on Sage 50 Cloud in their updated V27 version.
Thank you for your help, very useful and answered a lot of questions. You’re right, probably binned and they didn’t have many shares so wasn’t bothered in attending the meeting.
Thanks Barry, explains quite a bit. However, still disagree with the treatment of expenses by the Umbrella company. These in no way reflect the actual expenses incurred, despite client sending original receipts etc. Expenses is used as the balancing figure after taking into account Gross Wages at NMW, employers' NI, admin fee and holiday pay.
Seems unfair the contractor is hit with the employers' NI just because HMRC feel there is a misuse of the system. I'm sure there will be more on this topic in the future.
I contacted HMRC about contractor having to pay the Eer's NI under this new umbrella scheme, they were aware of it, said it shouldn't be happening but not quite sure what to do about it as so many enquiry departments had been closed!
I'm just calculating client's self-assessment, it's an absolute nightmare as they have paid him minimum wage, and given him the balance as 'expenses', so I now have to calculate what they have taxed him on, what he's received in expenses, and deduct his actual expenses to balance his tax liability. The only winners here are the Umbrella companies!
Employment status Hi Euan, thanks for posting info. Does this mean that CIS clients are now classed as 'employed' and will no longer be required to complete SA? The statement received by client provides an Umbrella Company reconciliation, and does show PAYE ref and tax code.
Any idea why they are paid minimum wage plus expenses? There also doesn't appear to be any income tax deducted although NI has been as well as 'holiday pay'.
Very confusing.
My answers
You may need to reopen the payslip thus making the employee 'live' for M12, then create a leaving date and submit an additional FPS. This will then let HMRC know they left your employment 31/03, and you should be able to issue a P45 - I haven't used Moneysoft, I use Brightpay and know I had to do that for an employee earlier in the year.
Agree with Johnt27 response. It is a notional VAT which cancels itself out, so affects boxes 1 and 4 for the VAT, and 6 and 7 for the net amount. This would be T15 on Sage 50 Cloud in their updated V27 version.
Thanks for the update on EPS, all submitted and received calls from HMRC to advise that accounts up to date.
Hi it is, and now resolved with the submission of an additional EPS. Thanks
Thank you for your help, very useful and answered a lot of questions. You’re right, probably binned and they didn’t have many shares so wasn’t bothered in attending the meeting.
Umbrella Company
Thanks Barry, explains quite a bit. However, still disagree with the treatment of expenses by the Umbrella company. These in no way reflect the actual expenses incurred, despite client sending original receipts etc. Expenses is used as the balancing figure after taking into account Gross Wages at NMW, employers' NI, admin fee and holiday pay.
Seems unfair the contractor is hit with the employers' NI just because HMRC feel there is a misuse of the system. I'm sure there will be more on this topic in the future.
Eer's NI on CIS
I contacted HMRC about contractor having to pay the Eer's NI under this new umbrella scheme, they were aware of it, said it shouldn't be happening but not quite sure what to do about it as so many enquiry departments had been closed!
I'm just calculating client's self-assessment, it's an absolute nightmare as they have paid him minimum wage, and given him the balance as 'expenses', so I now have to calculate what they have taxed him on, what he's received in expenses, and deduct his actual expenses to balance his tax liability. The only winners here are the Umbrella companies!
Employment status
Hi Euan, thanks for posting info. Does this mean that CIS clients are now classed as 'employed' and will no longer be required to complete SA? The statement received by client provides an Umbrella Company reconciliation, and does show PAYE ref and tax code.
Any idea why they are paid minimum wage plus expenses? There also doesn't appear to be any income tax deducted although NI has been as well as 'holiday pay'.
Very confusing.