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The Home Office has updated its guidance on right to work checks employers must carry out to include information on changes being implemented from 1 July 2021 onwards.

Right to work checks for EEA citizens from 1 July 2021

As of 1 July 2021, EEA citizens and their family members need to have immigration status in the UK. They can no longer use their EEA passport or national identity cards as proof of their right to work within the UK. Instead, it will be necessary for them to provide evidence of their lawful immigration status in the UK, in alignment with the requirements of other foreign nationals.

The majority of EEA citizens will have the option of proving their right to work using the Home Office online right to work service. Anyone who has successfully applied through the EU Settlement Scheme (EUSS) will only be able to demonstrate their right to work in this way. These individuals will provide their date of birth along with their share code to allow employers to check their immigration status online.

Where an individual has been granted ‘Settled Status’, they have a continuous right to work in the UK, but where someone has been given ‘Pre-Settled Status’, this is only for a limited period, and so employers must ensure they carry out follow-up checks at the appropriate time. The online service will state when this follow-up check must take place.

There are certain groups of EEA citizens who will not have status under the EUSS, and they will be required to prove their right to work using alternative documents, which include:

  • Frontier Worker Permits
  • Service Provider of Switzerland visas
  • Outstanding applications to UK EUSS
  • Outstanding applications to Crown Dependency EUSS
  • EEA citizens with Indefinite Leave to Enter / Remain
  • Points-based system visas

Further information on these documents and where they will apply is available within the guidance.

Irish citizens

Irish citizens can prove their right to work using their Irish passport, Irish passport card, or their Irish birth or adoption certificate along with an official document that displays their permanent National Insurance (NI) number and their name. This must have been issued by either a government agency or a former employer.

Irish citizens are also able to apply for a frontier worker permit, which can either be issued digitally or as a physical document. This gives the option of using the Home Office online right to work service to prove their right to work.

EEA citizens employed before 30 June 2021 who have not applied to the EUSS by 30 June 2021

There is a process that employers may follow until 31 December 2021 in relation to EEA citizens who were part of their workforce before 30 June 2021, but who have not applied to the EUSS by 30 June 2021. If they were employed prior to the end of the grace period, on 30 June 2021, then employers are not required to cease their employment but must take the following steps:

  1. Advise the individual that they must make an application to the EUSS within 28 days and provide a Certificate of Application (CoA). If this does not happen, the employment must be terminated
  2. Once a CoA has been provided, the employer must contact the Home Office Employer Checking Service to confirm the individual has applied
  3. Where an application has been made, a Positive Verification Notice (PVN) will be supplied – this should be retained, and will expire after a period of six months
  4. Prior to the PVN’s expiry date, a follow-up check must be carried out with the Employer Checking Service. If the individual has been granted status before the PVN expiry date, they can prove their right to work using the Home Office right to work online service
  5. If the follow-up check shows the application is pending, a further PVN will be granted for six months, and step four must be repeated. If this follow-up check confirms that the application has been refused, no additional PVN will be issued, and the employment must be terminated
  6. Employers must maintain accurate records of the checks it carries out and the subsequent actions they took
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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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UK MINIMUM WAGE RATES CHANGE FROM 1ST OCTOBER 2013

It has been confirmed that the new NMW rates which take effect from 1st October 2013 will be as follows:

The adult rate will increase by 12p to £6.31 per hour.

The rate for 18-20 year olds will increase by 5p to £5.03 per hour.

The rate for 16-17 year olds will increase by 4p to £3.72 per hour.

The apprentice rate will increase by 3p to £2.68 per hour.

The accommodation offset increases from £4.82 to £4.91

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