Employers' News

End of year returns

Employers’ 2004/05 annual returns are due to be submitted to the Revenue by 19 May 2005. In previous years a concession has allowed a seven day period of grace before a late filing penalty is charged. Issue 19 of the Employer’s Bulletin published in February stated that the seven day period of grace had been removed. However the latest Revenue Tax Bulletin confirms that employers will be allowed up to seven more days after the filing deadline of 19 May to submit their returns before a late filing penalty is charged – ie so long as the return is received by 26 May no penalty will be charged. The Bulletin reminds employers that the concession applies both to paper returns and those submitted electronically.

National insurance numbers

The latest Tax Bulletin also includes a section dealing with invalid national insurance (NI) numbers. Temporary National Insurance numbers starting with TN must not be used. Returns sent on paper will be sent back if temporary numbers are used. If the actual number is not known, the NI number field must be left empty and the date of birth and gender fields completed. Temporary numbers allocated by software during the year must be removed before the return is sent. NI number prefix ‘PZ’ is also not acceptable for 2004/05 and any such numbers should also be removed before the return is submitted.

Tax Credits - payment via employer

The Chancellor announced in his March Budget that the payment of Working Tax Credit via employers (PVE) would be phased out between November 2005 and April 2006. However the Revenue have now commented that they will consult further with employers before making any detailed arrangements.

The most recent Employers’ Bulletin states that nearer the time the change will be explained by:

• writing to all employers who pay Working Tax Credit and
• sending information direct to all affected employees.

However additionally employers will have to inform employees shortly before the phasing out begins. The Institute of Payroll and Pensions management reports that the cost to business of having to inform employees could amount to £9 million.