Hot topics of payroll - August 2019

30 August 2019

In the world of payroll there are always upcoming changes or new items for employers to consider and keep in mind in their day to day processing. Here are a few such topics for employers to be aware of in the coming months.

Council Tax Pilot Scheme

A new scheme has been created that will be trialled with 29 local authorities across England and Wales in order to try and recover unpaid council tax. The local councils will be working closely with the HMRC in order to try and recover unpaid monies from those who are employed. The HMRC can now share data with the trialling councils due to the Digital Economy Act (2017). This will mean any person owing council tax dating back to its origin in 1993 can be approached, with approval from a local magistrate court, to repay the tax owed if they have an income.

Employers could then become engaged in this recovery process as the owed amounts can be deducted directly through the employee’s earnings as an attachment of earnings. 

Statutory Sick Pay

It was announced back in 2017 that the government would be conducting a consultation on statutory sick pay (SSP) in order to review the scheme for fairness. Items such as suiting more flexible working were to be considered. It has now been announced that this consultation is going to take place as of 7 October 2019 with any findings and changes to be confirmed after. 

Extension of FPS easement

Back in 2015 it was introduced that an easement of three days would be introduced on all FPS submissions. This meant that there would not be a fine given as long as all reported payments on the FPS were made within three days of the employees pay day. 

It has been announced that this easement has been extended. There are still penalties that can be faced if certain conditions are not met. Read further information from HMRC regarding penalties. 

If you have any questions regarding the above, please contact Simon Balaam.