Employers
Are you keeping abreast of all the changes?? Now in 2011/12 higher rate tax at 40% starts above
gross income of £42,475, and additional rate tax at 50% starts above £157,475. Since April 2009 the statutory
holiday for a full time person is 28 days, that includes the 8 bank holidays. Make sure you deal with
end of year forms for the Revenue by the due dates, otherwise penalties may be incurred. As each year
passes the bureaucracy is increasing. It has long since passed the day when simply to fill in the PAYE
papers was about all you had to do. Contracts of Employment are essential. Should you reach a
situation when a member of staff has to be dismissed or disciplined then it is vital you follow the
correct procedures and also talk to your solicitor. Not to do so could ultimately cost you a five figure
penalty at a Tribunal, which will rarely find in favour of the employer, and which are incredibly costly
in both time and fees. DON’T THINK IT WON’T HAPPEN TO YOU! Other changes. One is to do with illegal workers. Since 29th
February 2008 you must have a copy of any new employee’s passport or similar document in order to
prove that the individual is entitled to work in this country.
Holiday Entitlement
Since 1st April 2009 it has been 5.6 weeks (28 days). The purpose of this change is to include bank holidays
as holiday. The increase entitlement is subject to a statutory maximum of 28 days. This means that
workers who work a six-day week will not be entitled to 32 days. Employees will not be
able to buy out these extra days and there will not be a right to carry forward into a subsequent holiday
year the extra days. However, the extra days can be carried forward by agreement between the worker
and the employer. It will remain the position that workers do not have the automatic right to take holiday
actually on the bank holiday. Employers will be able to require workers to take holiday leave
on the bank holidays if they wish provided they have given the requisite notice.
Authorized Mileage Allowance
From 6th April 2011 the current rates will be 45p for the first 10,000 miles and 25p thereafter.
National Minimum Wage
It has been, since October 2010, £5.93. For 18 to 21-year-olds, the rate is £4.92, while 16 to 17-year-olds it is £3.64.
It goes up again in October 2011.
See also :- http://www.direct.gov.uk/en/Employment/Employees/TheNationalMinimumWage/DG_10027201
Date of Birth
It is now Home Office Regulations under the Asylum and Immigration Act 1996 that an employee
must provide their employer with a copy of either their passport or full birth certificate showing details
of both parents or other approved documentation which confirms their right to work in the UK. If the
employer is employing someone without having sight of these documents, they are breaching this Act.
You must be aware of these facts and review your contracts of employment and handbooks to ensure
you are ready for the introduction of this enhanced right.
Forms to be filed.
Please bear in mind that the following information has to be completed by all Employers:-
P30 - Employers Paye Payslip - Due by the 19th of each month.
CIS Monthly Return - Due by 19th of each month if required.
P35 - Employers Annual Return - Due by the 19th May.
P11D - Benefits in Kind - Due by 6th July if required.
P60 - Yearly Summary - To be given to all Employees annually.
P45 & P46 - Employee Leaving and Starting Information - When arises.
Please contact us if you are not sure which forms you should be completing. Failure to process forms
by the deadlines provided by the Revenue can lead to large penalties.
CIS
Anyone dealing with CIS need to keep abreast of the ever changing rules. Verification of subcontractors,
monthly returns and NO late payment of Paye/CIS deductions to name but a few. If you
are having to deal with CIS please contact us to discuss the best way for your business to deal with the
procedures involved. Loss of status such as CIS Gross Exemption or large penalties can be the result
of getting this wrong.
SICK NOTES BECOME FIT NOTES
On 6th April 2010 - Handling sickness absence is a major issue for employers. The fit note replaced the
Med 3 sick note.
SEE: http://www.direct.gov.uk/en/Employment/Employees/Sicknessabscence/DG_185054
Further employment details from :
www.direct.gov.uk/en/Employment/Employees/WorkingHoursAndTimeOff