March
2010
State
Pension Age (SPA) is changing between 2010 and 2020
As a result
of changes brought in by the pensions Act, from 6 April 2010 the age
at which women reach SPA will gradually rise to become the same as it
is for men (65). These changes will happen between 2010 and 2020 and
will affect women born between 6 April 1950 and 5 April 1955. All women
born on or after this date will reach SPa at age 65.
Recording
National Insurance Contributions
Currently,
employees who are over SPA (meaning 60 for women and 65 for men) do
not have to pay employee's National Insurance Contributions (NICs).
The employer however has to pay Class 1 category C rate NICs.
As the
SPA for women gradually increases, you will need to deduct, record and
pay both employee and employer Class 1 NICs for women over the age of
60 up to their new SPa.
You will
need to ensure that you have accurate dates of birth for all of your
employees in order to determine when they no longer need to pay Class
1 NICs because their SPa has been reached. Class 1 category C rate NICs
will only apply to employees working beyond their SPa.
February
2010
Are
you filing all your starter and leaver forms online?
If you
have 50 or more employees, you should now be filing your Employer Annual
return, starter and leaver forms online.
Since
6 April 2009, you have been required to send HMRC the following starter
and leaver notifications online:
- P45 (Part 1) - Details of employee leaving.
- P45 (Part 3) - New employee details.
- P46 - Details of employees starting work who do not have P45.
- P46 (Pen) - New pension details.
- P46 (Expat) - Details of those seconded to work either wholly or partly
in the UK whilst remaining employed by an overseas employer.
Penalties
In December 2009 HMRC started issuing warning letters to those employers
with 50 or more employees who are still not filing their starter and
leaver forms online.
Penalties
will range from £100 to a maximum of £3000 depending on
the number of paper forms that you send , when they should have been
done online.
The first
penalty notices will be sent in April 2010. We strongly recommend that
you now make sure that your payroll processes are working properly.
Please check that you are already sending us all your starter and leaver
notifications online.
If you
have any concerns re filing online, please contact
us
