Geek

In CWG2 https://www.gov.uk/government/publications/cwg2-further-guide-to-paye-and-national-insurance-contributions/2024-to-2025-employer-further-guide-to-paye-and-national-insurance-contributions it says 'Occasionally, payroll sections do not get to know about certain marginal items of pay, for example, expenses, until sometime after they have been paid or treated as paid.' The only explanation of what a marginable item of pay is expenses. Can you please give more clarification of what a marginal item of pay is in this context? I dont believe it is for items such as overtime, or backdating of salary say for a pay rise, missed payments for working, bonuses etc - but please clarify if these are included in this terminology, and if not examples of what is.

In https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/nim02331 it states 'If the Smart Pensions Scheme is effective it will reduce Class 1 NICs liability.' It does not say anywhere in this or any related thread what is classed as effective so that contributions are specifically disregarded by virtue of paragraph 2 of Part 6 of Schedule 3 to the Social Security (Contributions) Regulations 2001. TPR are not able to advise as its an HMRC manual. Can you give an example of what would 'not be effective' so that NIC's would be due if the salary sacrifice also fails as per the relevant EIM's & NIM's.

Your tax free allowance is for all employments, so as long as you are under this and have no other incomes you would not be due any tax. Obviously if you go over the allowance you will have a tax bill due

Hi, if the employee has overpaid tax even from a previous employment you need to pay this to them, and report the actual paid figures on the FPS. When you pay your whole amount of tax on the EPS it will take into account this refund you have paid the employee.

Louise C - there are 2 issues here which ACAS will be able to help with. Legally you must take holiday each year at 5.6 weeks. The employer may include holiday pay at a minimum of 12.07% of your hourly rate and uplift the rate by this amount. So NMW is £11.44 the minimum hourly rate would be £12.82 - but this must be specifically reflected in your contract, otherwise you must be allowed to take paid time off as holiday at your contractual rate of pay. This is where ACAS will help as NMW is just to do with worked hours. At £12 an hour you should report your employer to HMRC if the contract states this includes your holiday pay, and also ACAS for nnot allowing you to take holiday

You are entitled to receive the NMW rate per hour of work. You are also entitled to paid holiday. If the employer has legally brought in rolled up holiday pay this will be in your contract and shown on the payslip as a separate line, paid each pay period, otherwise it breaches the rules. Do please call ACAS 0300 123 1100 if this is not happening

If you are operating a salary sacrifice scheme, you have legally changed the employee contract and reduced the salary in exchange for a benefit in kind at the cost of the employer. This must be maintained whilst an employee is on statutory leave so not to cause a breach of contract, discrimination, constructive dismissal etc and there are multiple tribunal cases that involve maternity. The employer manuals offer a lot on this, 2 of which are: https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim42766 https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim42753

The P45 is no longer submitted to HMRC, it is an employee document that may be used for a new employer (subject to certain rules). The old employer has to tell HMRC that you left via their FPS and should have done this at the same time as processing your final pay. You should email / call the payroll department at both pervious employer's and ask them to tell you the date of the FPS submission where they made you a leaver and notified HMRC, and then with this (you will also need their PAYE reference which is usually on the payslip, and definitely on your P45 copy) you can call the HMRC employee helpline and get them to check the submissions and update your record. You will receive a new tax code should you be owed any money from HRMC

If your employee has signed up to a contractual reduction in remuneration in exchange for a benefit (salary sacrifice agreement) what you are calling the employee contribution is in fact the employer contribution. Whilst your person is unable to make the sacrifice from the original remuneration as they are on statutory leave the employer legally has to carry the burden for the whole amount for the whole period of time. So in this case the employer will have to maintain the full 10% contribution, based on the amount in the contractual change (so that is the 10% of the original salary).

You must submit an EPS every month even if the values are nil. Should you be entitled to Employment Allowance you will reduce your liability once it starts up to £5k https://www.gov.uk/claim-employment-allowance