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HMRC is aware of technical issues with a couple of the calculators that it offers online that help to assist in ensuring certain elements of pay are accurate. HMRC is currently investigating as a matter of urgency and hopes to have the calculators running correctly as soon as possible.

Company Car and Car Fuel Benefit calculator

There is an issue  with the Company Car and Car Fuel Benefit calculator.

When a value is entered into the section of the calculator that queries whether the car is provided via an Optional Remuneration Arrangment (OpRA), and that figure is higher than the cash equivalent of the calculated car benefit, the tool is not replacing the car benefit charge with the higher OpRA figure. This means that the calculator is not currently correctly aligned with OpRA rules.

The relevant section is displayed below:

 

 

 

 

Is the car provided via an Optional Remuneration Arrangement?

 Yes

 No

 

 

 

 

If yes, amount foregone in respect of car: *

£ 

 

 

Director’s Class 1 National Insurance Contributions (NICs) calculator

An issue has been identified with the Director’s Class 1 NICs calculator that those dealing with the pay of directors should be aware of.

An issue arises where the figure included in the total cumulative pay section is above the Secondary Threshold (ST) for tax year 2021-22 of £8,840 per year, but at, or below, the figure of £9,568 per year, which is the Primary Threshold (PT) for tax year 2021-22.

The ST is the point at which an employer begins to pay NICs and the PT is the point at which an employee beings to pay NICs.

When a figure of between £8,840 and £9,568 is entered, the employer’s NICs are not being calculated correctly, so those processing payrolls that may be impacted by this should keep this in mind.

 

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HMRC has confirmed that, unfortunately, the Coronavirus Job Retention Scheme (CJRS) calculator (furlough) contained a software error, but that this has now been rectified.

What this does mean, however, is that anybody who utilised the calculator prior to 21 January 2021 to calculate January 2021 claims for employees who are not on a fixed salary will be required to re-calculate their claims if:

  • They used an employee’s pay for January 2019 as reference pay, instead of 2020, and
  • Their pay was different in January 2019 to January 2020

Where January 2020 pay was used, there is no need for claimants to take any further action.

HMRC has apologised to anybody who will now be required to re-calculate their claims.

If, upon performing the re-calculation, it is apparent that the claim amount was incorrect, then:

  • If a claim for too much has been submitted, this should be amended in the next CJRS claim submission. Alternatively, HMRC should be notified as soon as possible, and a repayment made either online, through HMRC’s card payment service or by bank transfer
  • If a claim for too little was submitted, then claimants should call the helpline to get this corrected by 1 March 2021

 

ANOTHER REASON TO USE THE WAGES ROOM!

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