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October 2009 - E-NEWS
In this month’s e-news we report on some forthcoming changes to the intestacy rules.
We also include our usual round up of news. Please browse through this month’s articles using the links below and contact us if any issues or questions arise.
- HMRC Warn Of More Scam Emails
- Additional Paternity Leave And Pay
- Pay For Apprentices
- Are You Complying With The National Minimum Wage Rules?
HMRC have updated their guidance on scam emails, as they are aware that a large number of individuals are receiving emails offering tax rebates or suggesting further tax is due.
HMRC have confirmed that they would not inform taxpayers of a tax rebate via email, or request that they complete an online form to receive a rebate of tax.
The Revenue have also reiterated that they do not issue emails asking for personal details.
One of the latest examples is entitled “Notice of Unreported Income” and tries to download a file onto affected users’ computers.
There is a long list of web addresses being used in the scams including:
customers@hmrc.gov.uk
help.desk@hmrc.notify-online.co.uk
hmrc@tax-revenue.uk
hmrc@tax-revenue.uk
hmrchelpdesk@hrmchelpdesk.co.uk
info@hmrc.gov.uk
no-reply@hmrc.gov.uk
office.tax@hmrc.taxreturn.co.uk
online.notify@hmrc-customs.co.uk
online.paper@hmrcpaper.co.uk
postmaster@hmrc.co.uk
refunds@hmrc.gov.uk
refunds@hmrc.gov.uk
refundsdept@hmrc.gov.uk
securemail@hmrc.gov.uk
service@hmrc.gsi.gov.uk
taxcredits@hmrc.co.uk
tax-refund@hmrcforms.co.uk
tax-service@hmrc.customs.gov.uk
HMRC are stressing that individuals should not visit websites contained within such emails or disclose any personal or payment information.
For more information on this and other scams visit the links below.
Internet links: HMRC guidance and Latest example
ADDITIONAL PATERNITY LEAVE AND PAY
The government has announced its intention to introduce Additional Paternity Leave and Pay for fathers of children due on or after 3 April 2011.
The government will consult shortly on new regulations that will give families greater flexibility in how they choose to look after their children.
As detailed in the press release:
- Families will have the choice to transfer up to six months leave to the father should they want to, which can be taken by the father once the mother has returned to work.
- This new provision will be available during the second six months of the child’s life, giving parents the option of dividing a period of paid leave entitlement between them.
- Some of the leave may be paid if taken during the mother’s 39 week maternity pay period. This would be paid at the same rate as Statutory Maternity Pay (generally £123.06 per week).
- Parents will be required to ‘self certify’ by providing details of their eligibility to their employer. Employers and HMRC will both be able to carry out further checks of entitlement if necessary.
Harriet Harman, Minister for Women and Equality, said:
“Mothers will be able to choose to transfer the last six months of their maternity leave to the father, with three months paid. This gives families radically more choice and flexibility in how they balance work and care of children, and enables fathers to play a bigger part in bringing up their children.”
Internet links: HMRC guidance and Press release
From 1 August 2009 the minimum wage for apprentices increased from £80 to £95 per week.
The Low Pay Commission is to consider whether or not apprentice pay should come under the umbrella of the National Minimum Wage regulations. The Confederation of British Industry (CBI) has raised concerns about increasing the minimum wage level significantly. According to their press release, and in reaction to youth unemployment reaching its highest level since records began, Katja Hall, CBI Director of Employment Policy, said:
“The rising level of youth unemployment is alarming and we cannot afford to lose a generation of young people. Apprenticeships are an excellent path to employment but their availability would be constrained if a minimum wage was set too high.”
“Young people must not be priced out of apprenticeships in a difficult jobs market. If apprentices join the national minimum wage system they must do so at the right level and in a way that employers can understand.”
Internet link: Press release
ARE YOU COMPLYING WITH THE NATIONAL MINIMUM WAGE RULES?
HMRC are reminding employers that since the beginning of the current tax year automatic penalties have been introduced for those who do not comply with the National Minimum Wage (NMW) Regulations.
The penalties range from £100 to £5,000 with 50% prompt payment discounts for employers who settle within 14 days of notification.
The penalty is payable in addition to arrears owed to the workers.
The penalty notice will detail the amounts due to workers (calculated according to the formula shown below) and any penalty due on those arrears. The penalty is calculated as half the total underpayment. The underpayments are uprated to take into account the length of time the arrears have been outstanding.
For each payment period the formula is:
Original underpayment x Current NMW rate = Arrears
Original NMW rate
In serious cases of non compliance the employer may be tried in a Crown Court and in those cases the fines are unlimited.
The current NMW rates are:
- £5.73 (£5.80 from October 2009) an hour for adults aged 22 and over
- £4.77 (£4.83 from October 2009) an hour for 18-21 year olds
- £3.53 (£3.57 from October 2009) an hour for 16-17 year olds.
Internet link: Employer Bulletin article
HWB
Chartered Accountants, Highland House, Mayflower Close, Chandlers Ford, Eastleigh,
Hampshire, SO53 4AR.
