Interesting News

News Bulletins

June 2010 - E-NEWS

Please browse through this month’s articles using the links below and contact us if any issues or questions arise.

• State pension age and national insurance contributions
• Changes to the advisory fuel rates from 1 June 2010
• Child trust fund to be cut
• Holiday entitlement
• HMRC warn of email rebate scam

State Pension Age and National Insurance Contributions

HMRC are reminding employers to take care when deciding whether or not their employees need to pay national insurance contributions (NICs). Employees do not need to pay NICs on reaching State Pension age (SPa). Some payroll software warns employers as women approach age 60 to check their national insurance status as previously women would have been exempt from the employee contribution from age 60. This warning may now be being issued too early.

As a result of changes brought in by the 1995 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 of 65.  The change is being phased in between 6 April 2010 and 6 April 2020 on a sliding scale, and will affect women born between 6 April 1950 and 5 April 1955.  All women born on or after 6 April 1955 will reach SPa at age 65.

For more information see the latest Employer Bulletin and for a look up table of dates see appendix C following the link below.

Internet links: Employer Bulletin and DWP report

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Changes To The Advisory Fuel Rates From 1 June 2010

To reflect the increase in fuel prices, HMRC have issued new advisory fuel rates for employees driving employer provided cars. These take effect for all journeys undertaken from 1 June 2010, so employers using the advisory rates should advise affected employees and update any expense forms as soon as possible.

The advisory fuel rates may be used for journeys undertaken on or after 1 June 2010.

HMRC have in the past given employers a month’s notice of changes to these rates. However, according to the HMRC guidance:

“These rates apply to all journeys on or after 1 June 2010 until further notice, allowing them to reflect fuel prices more quickly. For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.”

Other points to be aware of about the advisory fuel rates:

• Employers do not need a dispensation to use these rates.
• Employees driving employer provided cars are not entitled to use these rates to claim tax relief if employers reimburse them at lower rates. Such claims should be based on the actual costs incurred.
• The advisory rates are not binding where an employer can demonstrate that the cost of business travel in employer provided cars is higher than the guideline mileage rates. The higher cost would need to be agreed with HMRC under a dispensation.

If you would like to discuss your car policy, please contact us.

Internet link: HMRC advisory fuel rates

For more information contact Alan Rolfe on 023 8046 1200.

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Child Trust Fund To Be Cut

The government has outlined plans to make changes to the Child Trust Fund as part of plans to cut  £6 billion in expenditure.
 
The government intends to introduce secondary legislation to scale back government payments due to Child Trust Funds from 1 August 2010. From that date, payments at birth will be reduced from £250 to £50 for better off families, and £500 to £100 for lower income families; and payments at age 7 stopped. The government intends to introduce primary legislation to stop all payments from 1 January 2011. Additional contributions for disabled children will be paid this year. From 2011/12 the money used for these additional contributions will be redirected to respite care for disabled children.

Internet links: Times online and Press notice

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Holiday Entitlement

With signs that spring is finally here many employees will be planning or longing for their summer holidays. Holiday entitlement is one of the complex areas which can cause employee dissatisfaction if not handled correctly, especially for those with part time or irregular hours. Since 1 April 2009 the minimum statutory holiday entitlement has been 5.6 weeks inclusive of Bank Holidays, the equivalent of 28 days for those employees working a five day week.  Employers may of course offer more holiday if they wish. 

To check either your own, or your employees minimum holiday entitlement visit the link below.

Internet link: Business link website

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HMRC Warn Of Email Rebate Scam

HMRC are warning that taxpayers are being emailed stating that they are entitled to a tax rebate.  These emails are being sent from a number of bogus email addresses. They inform recipients that they are entitled to a tax rebate and invite them to complete an online form to receive a rebate of tax.
 
HMRC are advising that taxpayers should not visit the website contained within the email or disclose any personal or payment information.

Email addresses used to distribute the tax rebate emails include:

• refunds@hmrc.gov.uk
• info@hmrc.gov.uk
• attached.form@hmrc.attached.gov.uk
• service@hmrc.gov.uk
• hmrcrefunds@hmrc.gov.uk
• refundsdept@ir-efile.gov.uk
• noreply@notifications.gov.uk
• customers@hmrc.gov.uk
• taxcredits@hmrc.co.uk
• notice-hm@hmrc.gov.uk
• securemail@hmrc.gov.uk
• hmrc@tax-revenue.uk
• tndrftnpcb@aol.com

HMRC have confirmed that they do not send out emails using these email addresses.

Internet link: HMRC scam email examples

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