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Tax / NI Related Legislation

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In this screen you can view the tax and NI related legislation for the payments, deduction and absent items. For example, the current National Insurance rates, current student loan rates, Income tax and PAYE rates etc.

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E-Filing RTI > Tax / NI Related Legislation

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Payment Related Legislation

Holiday Pay: All employees have a statutory entitlement to four weeks paid holiday each year which accrues throughout the holiday year. The Working Time Regulations 1998 set down the minimum annual leave provisions for workers although some employers / contractors may provide more generous contractual holidays. For more information click here
SSP/SMP/SAP/SPP: Statutory Sick Pay must be paid for up to 28 weeks to all qualifying employees who are unable to work due to ill health. Statutory Maternity Pay must be paid for up to 39 weeks to all female qualifying employees who are off work having a child. Statutory Adoption Pay is paid for up to 39 weeks to all qualifying employees who adopt a child. Ordinary Statutory Paternity Pay is paid for up to 2 weeks to all qualifying employees whose spouse or partner gives birth to or adopts a child. For more information click here
Travel Allowance (Mileage Allowance): Mileage allowance payments are amounts (other than passenger payments) paid to an employee for expenses relating to the use by that employee for business travel of a qualifying vehicle. If the employer / contractor pays more than the AMAP (Approved Mileage Allowance Payment) amount, the excess should be returned on form P11D. For more information click here
Non taxable Redundancy Pay: Redundancy occurs where an employee is dismissed due to lack of suitable work. Compensation involves a statutory minimum redundancy payment made by the employer / contractor and sometimes further non-statutory payments. When a lump sum redundancy payment is made, in most cases a £30,000 tax exemption limit will apply. If the redundancy payment is below this amount, it is effectively tax free. If it exceeds this amount, only the excess is taxed. (i.e., Out of a £45,000 payment, only £15,000 is taxed). For more information click here
Taxable Redundancy Pay: Redundancy occurs where an employee is dismissed due to lack of suitable work. Compensation involves a statutory minimum redundancy payment made by the employer / contractor and sometimes further non-statutory payments. When a lump sum redundancy payment is made, in most cases a £30,000 tax exemption limit will apply. If the redundancy payment is below this amount, it is effectively tax free. If it exceeds this amount, only the excess is taxed. (i.e. Out of a £45,000 payment, only £15,000 is taxed). For more information click here
Tips & Service pay through tronc: A tronc is an arrangement for pooling tips that are then shared between employees who are tronc members. A tronc is run by an individual known as a troncmaster. The employer / contractor must notify the appointment of a new troncmaster to the HM Revenue & Customs office dealing with the Employer's / Contractor's affairs. The HM Revenue & Customs will set up a PAYE scheme for the tronc in the troncmaster's name. The tronc will be entirely separate and independent from the Employer's / Contractor's PAYE scheme and must be run as such. For more information click here
Tips & Service pay through employer / contractor: Where the employer / contractor is involved in the distribution of tips to employees, the employer / contractor is responsible for operating PAYE. The employer / contractor must include the amount of tips paid to each employee in their gross pay and deduct PAYE accordingly. For more information click here

Deduction Related Legislation

Income Tax & PAYE: By law, anyone making payments to employees is obliged to operate the PAYE system. This means they must deduct income tax (and National Insurance Contributions) from the payments that they make to the employees, and must then pass these sums onto the HM Revenue & Customs. For more information click here.
National Insurance: National Insurance is a scheme in which employees make contributions from earnings towards the British social security system. National Insurance Contributions (NICs) are used to pay for benefits such as state pensions, unemployment benefits, maternity entitlements etc. For more information click here
Student Loan: A statutory deduction on those employees who are liable to make repayments on loans taken out whilst they were attending courses in Higher Education. Student loan is categorized as Plan 1,Plan 2 and Plan 4.
- Student loan plan 1 is £26,065 per year
- Student loan plan 2 is £28,470 per year
- Student loan plan 4 is £32,745 per year

Only one plan type will be operational at a time. Plan type will be notified as part of Student Loan SL1 Start Notice. Form P45 - Plan type will not be included, only indicator as to whether Student Loan Deductions continue. Only thresholds are different for all three plans but the calculation method and deduction rate(9%) remains the same.. The employer / contractor then hands over the repayments to the HM Revenue & Customs along with PAYE tax and NICs each month/quarter. For more information click here

Lost time Earnings: Lost Time earnings may be made by the employer / contractor to compensate an employee for loss of earnings while attending meetings of trade unions, or similar organisations, or while on jury service. For more information click here.
Payroll Giving: The Payroll Giving scheme is a way of making donations to charity. Under this scheme employees can donate tax-free via the payroll to the Payroll Giving Agency. The employer / contractor passes on these donations to the Agency who act as a clearing house and distributes payments to the charities nominated by the employee. For more information click here.
Pension: A Pension is a lifetime income payable to a person upon his or her retirement. In general pensions are taxable, but are not chargeable for National Insurance. For more information click here.
Attachments: An Attachment of Earnings Order is issued by a Court and will instruct an employer / contractor to deduct an outstanding debt from an employee via their wages. The employer / contractor is legally required to collect the stated amount. Deductions are always taken from the employee's attachable earnings. The employer / contractor must then pass the deductions on to the issuing court. For more information click here.

Absence Related Legislation

Suspension: An employee may be suspended from work for medical, maternity, or other reasons. Some jobs are covered by health and safety regulations under which employees may be suspended from normal work on medical grounds. Employees affected are entitled to be paid while on suspension for up to 26 weeks. An employee may be suspended on maternity grounds when she is pregnant, or has recently given birth, or is breast-feeding if continued attendance might damage her, or her baby's, health. A woman on maternity suspension must be paid her normal wages for as long as the suspension lasts. For more information click here.
Legal Custody: Legal custody refers to a situation when your employee is away from work because he/she is in involuntary police custody or is in prison.
Jury Service: An employee on jury service is not entitled to his/her normal pay unless a contract of employment states that he/she is. However, the juror can claim from the court expenses for travelling, subsistence and loss of earnings. For more information click here.
Trade Union Meetings: An employee, who is a member of an independent trade union recognised by their employer / contractor, is generally entitled to take time off during his working hours for the purpose of taking part in any activities of the union, and any activities in relation to which the employee is acting as a representative of the union. For more information click here.

Trade Dispute: Trade dispute applies if an employee is absent from work because of a trade dispute at the employee's place of work, and is participating or directly interested in the trade dispute. For more information.

TAX & NI Legislation

NI Categories: You can View/Print current tax year NI Categories assinged to your employee's.
NI Rates: Here you can view the NI rates including the annual bandwidth,employee rate,employer rate,employee rebate,employer rebate corresponding to respective NI code.
Tax Rates & Bandwidths: Here you can view the PAYE tax Bands and rates including the PAYE band starting rate, PAYE band end rate, and basic band rates for the current tax year.

CIS Legislation

CIS340 - Construction Industry Scheme Guide: Construction Industry Scheme guide for contractors and subcontractors. click here.
CIS341 - New Construction Industry Scheme Guide: A quick guide to the new Construction In dustry Scheme. click here.
CIS342 - Registering for new CIS: Registering for new CIS advice for subcontractors. click here.
CIS343 - Applying to be paid gross: Applying to be paid gross advice for subcontractors. click here.
CIS344 - Getting paid by a contractor: Getting paid by a contractor advice for subcontractors. click here.
CIS345 - Verifying a subcontractor: Verifying a subcontractor advice for contractors. click here.
CIS346 - The monthly return: The monthly return advice for contractors. click here.
CIS347 - A contractor's obligations: A contractor's obligations advice for contractors. click here.
CIS348 - The scope of the Scheme Guide: The scope of the scheme a quick guide. click here.
CIS349 - Are your workers employed or self-employed?: Are your workers employed or self-employed?. Advice for contractors. click here.

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