Important Employment Notes

PAYE Submissions
All employers now have to submit to HMRC information in real time (RTI) before paying staff. This means that your records must now be computer based. This is a help when it comes to submission of all the various forms.

Are you keeping abreast of all the changes?? Now in 2016/17 higher rate tax at 40% starts when income, after allowances, exceeds £32,000, and additional rate tax at 45% starts above £150,000. 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 33.6 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.

National Minimum Wage Rates
The National Minimum Wage rate per hour depends on your age and whether you’re an apprentice – you must be at least school leaving age to get it.

21 and over
18 to 20
Under 18
*This rate is for apprentices aged 16 to 18 and those aged 19 or over who are in their first year. All other apprentices are entitled to the National Minimum Wage for their age.

National Living Wage
From April 2016, the national living wage will be £7.20 an hour for workers aged 25 and older. The minimum wage will still apply for workers aged 24 and under.


Authorized Mileage Allowance
Since 6th April 2011 the current rates have been 45p for the first 10,000 miles and 25p thereafter.

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.

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.
See: for further details.

Handling sickness absence is a major issue for employers. The fit note has replaced the Med 3 sick note.
SEE: Taking Sick Leave