The following Employment Tax guidance note Produced by Tolley in association with Vince Ashall provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant tax changes associated with Brexit began to take effect. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit ― personal and employment tax implications guidance note.
When a new employee starts with an organisation, the employer needs to obtain several pieces of information to ensure that the employee can be paid correctly and on time.
At this stage, assume that the necessary pre-employment checks have been made. Pre-employment checks are not a direct payroll responsibility and should have been undertaken at the interview stage. These checks are to establish a prospective employee’s right to work in the UK under the Immigration, Asylum and Nationality Act 2006. See the Checking the employee’s right to work guidance note.
The basic employee details needed are:
name ― forename(s) and surname (ensure these are the right way round)
date of birth
To ensure correct payment, the payroll operator will need to know the rate of pay, together with any other allowances that may be payable. The rate of pay should be at least equal to the appropriate national minimum wage / national living wage rate. See the National minimum wage ― overview guidance note and the GOV.UK website.
Although not a mandatory item for employment law purposes, it is essential that a NINO is held for every employee. The NINO is the prime identifier used by HMRC and other government departments such as the Department for Work and Pensions (DWP). A valid NINO is in the format ‘aannnnnna’ where:
aa is a valid alphabetic prefix
nnnnnn is a six-digit number
a is a suffix letter; one of A, B, C or D
See Example 1.
Where the NINO is
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
IntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel. See the Travel expenses guidance note for more information of when
The basic rule is that all benefits provided to an employee by reason of their employment are taxable unless there is a specific exemption or other rule that means they are not chargeable to tax.ExemptionsThe main exemptions for employee benefits are in ITEPA 2003, ss 227–326B (Pt 4).Below is an
This guidance note provides details of quarterly instalment payments (QIPs) for corporation tax purposes and which companies need to pay their tax liabilities in this manner.Generally, corporation tax is payable nine months and one day after the end of the relevant accounting period. However, large
Many people work from home either on an informal or a full-time basis. These people can be employed or self-employed, and their employment status affects the expenses they can claim as a deduction from their earnings.When dealing with someone working from home, it is important to remind him that
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.