HMRC has published the latest edition of the Employer Bulletin. This guidance for employers, and their agents, includes articles on:

• Reporting your payroll information accurately and on time 
• Irregular payments and completion of Full Payment Submissions
• Starter Declaration on a Full Payment Submission (FPS)
• PAYE Settlement Agreements and Scottish Income Tax
• National Living Wage and National Minimum Wage – are you paying the correct rate?
• Advisory Electricity Rate for fully electric company cars
• Welsh Rates of Income Tax
• Construction Industry Scheme (CIS) webinars
• Postgraduate Loans
• Benefits and Expenses: Company cars
• Tax avoidance loan schemes – settle now
• Completing an EYU in respect of Employee’s National Insurance Contributions
• Employment Income: Draft Legislation
• Deadline for post 16 Child Benefit looms.

For help with payroll matters, please contact us.

Internet link: Employer Bulletin

HMRC has highlighted that three million UK couples have already taken advantage of Marriage Allowance but a million more are still eligible for the tax break.

The Marriage Allowance allows certain couples, where neither pay tax at more than the basic rate, to transfer 10% of their unused personal allowance to their spouse or civil partner, reducing their tax bill by up to £238 a year in 2018/19.  The allowance was introduced in 2015 and it is possible to backdate the claim to earlier tax years.

Please contact us if you would like to know more about this allowance and whether you are eligible.

Internet link: GOV.UK news

HMRC has launched a consultation on draft proposals to ban pensions cold calling.

Under the proposals, unsolicited marketing calls relating to pensions could be banned, alongside cold calls that offer a ‘free pension review’.

The government also outlined its intention to ban cold calls that promote retirement income products, such as drawdown.

The consultation closes on 17 August 2018.

Internet link: GOV.UK consultation

The Government is reminding ‘stressed out parents’ that help may be available for childcare costs during the summer holidays. According to a YouGov poll, 31% of parents feel stressed trying to arrange childcare for the school holidays.

The poll, for HMRC, also found that around 30% of parents worried about balancing their job and school holiday childcare. With 54% admitting they look forward to their children returning to school in September.

HMRC is reminding working parents with summer childcare costs, that they can use Tax-Free Childcare (TFC), which is worth up to £2,000 per child per year, to pay for regulated holiday clubs during the school holidays. Parents are advised that it is possible to pay into their account regularly and ‘save up’ their TFC allowance and use it for childcare during school holidays.

Internet link: GOV.UK news

The Bank of England has raised the interest rate from 0.5% to 0.75%. The quarter of a percentage point rise sets the rate at its highest level since March 2009.

The rise in the interest rate will no doubt increase the interest costs of residential mortgages that have variable or tracker rates. It will be interesting to see if the rise in the rate is passed on to savers.

In response to the increase in the rate Alpesh Paleja, CBI Principal Economist, said:

‘This decision was in line with our expectations. The case for another rate rise has been building, with inflationary pressures being stoked by a tight labour market and many indicators now suggesting that weak activity in the first quarter of 2018 was a blip.’

The Monetary Policy Committee has signalled further rate rises over the next few years, if the economy evolves as they expect. These are likely to be very slow and limited, particularly over the next year as uncertainty around Brexit takes its toll on business investment.’

Internet links: BBC news  CBI news