With several new starters, and an 11 year veteran leaving Keytime Towers for pastures new, I've had plenty of practice recently with HMRC's new in-year filing process, which I went through last time (http://u-clock.blogspot.com/2010/03/in-year-filing-budget-what-you-need-to.html). It was all nice and easy, so it is well worth getting started before it becomes compulsory for businesses with fewer than 50 employees in April next year.
This month, my thoughts turn to keeping up to date with all the latest changes to payroll legislation; with the second Budget of the year rapidly approaching, there could be significant changes on the horizon.
I've jotted down some key reminders below, to help you keep up to date, and included some useful links for keeping on top of things as we come out the other side of the Budget.
First up is P11D, with the looming deadline on July 6th. Don't forget to get your forms in!
Next, we have changes to the State Pension age for women, which will slowly increase from 60 to 65 over the next 10 years. The method HMRC have chosen is to phase in the change on a sliding scale, which will affect women born between 6th April 1950 and 5th April 1955.
In general, employees over the State Pension age do not have to pay employee's National Insurance Contributions (NICs) (while employers pay Class 1 Category C NICs for those employees). With the new sliding scale, employers will have to calculate the new state pension age for affected women, and continue to deduct Class 1 NICs up to the new date.
The table below shows how the state pension age changes during this year:
| Date of Birth | New State Pension Age Date | State Pension age (in years and months) |
| 06/04/50 to 05/05/50 | 06/05/2010 | 60.1 |
| 06/05/50 to 05/06/50 | 06/07/2010 | 60.2 |
| 06/06/50 to 05/07/50 | 06/09/2010 | 60.3 |
| 06/07/50 to 05/08/50 | 06/11/2010 | 60.4 |
| 06/08/50 to 05/09/50 | 06/01/2011 | 60.5 |
| 06/09/50 to 05/10/50 | 06/03/2011 | 60.6 |
You can calculate the State Pension age for your employees with a HMRC tool – check the useful links section for details.
It is very important to ensure that you have accurate dates of birth for all employees to calculate when they no longer need to pay Class 1 NICs.
And finally, a little reminder that the National Minimum Wage (NMW) is increasing from October 1st, and the bandings are changing, so that all workers aged 21 and over are entitled to the new NMW. Currently, the top band is available to all workers aged 22 and over; 21 year olds remain in their current band until October.
Useful links
http://www.hmrc.gov.uk/paye/forms-publications/register.htm - Register to receive an email letting you know when the HMRC Employer Bulletin is available for download (as they are stopping the paper version from September 2010).
http://www.hmrc.gov.uk/payinghmrc - Check you have the correct payment details for HMRC, as the old bank accounts will be closing during this year.
http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/DG_4017919 - Calculate the State Pension age for your employees with this tool from HMRC.
What would you like to see covered next time? Let me know in the comments! You should follow me on twitter here.
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