From 6 April 2009, those who reach State Pension age between 6 April 2008 and 5 April 2015 will have the opportunity to buy up to an additional six years of voluntary national insurance contributions (over and above those permitted under current time limits).

They will be able to pay ‘Class 3 voluntary contributions’ for any 6 years from 6 April 1975, providing they have already accrued 20 qualifying years (including any full tax years of Home Responsibilities Protection).

The new provisions mean that those reaching pensionable age will have the opportunity to fill in any gaps they have in their National Insurance record giving them an opportunity to qualify for a larger state pension.

The Class 3 voluntary contributions will cost £12.05 per week.

More details concerning this change in legislation can be found at The Pension Service – State Pension – Paying Class 3 National Insurance contributions

Through the Train to Gain Leadership and Management Programme, owner managers and company directors have a great opportunity to apply for funding to help develop business leadership skills.  This offer is available to companies in the South East with 5 – 250 staff. 

The money can be put towards one or a combination of training solutions to benefit you and your business.

Your learning programme can be funded up to a maximum contribution of £1,000.

·         The first £500 is available for managing directors, owner managers, and company directors and does not need to be matched.

·         A further grant of up to £500, which must be match funded, is available for any senior manager or the management team.

A qualified and experienced Train to Gain Skills Broker will help you identify your own personal training and development requirements and offer a choice of flexible tailored learning solutions to suit your individual and business needs.

For more information please call 0845 751 2288.  Or e-mail info@traintogainse.co.uk.

See www.traintogainse.co.uk for more details.

HM Revenue & Customs has issued an alert to employers with 50 or more employees – important PAYE changes come into effect in April, so make sure you’re ready for them.

These employers must send their employee starter and leaver information – P45s, P46s and P46(Pen) for pensions – online from 6 April 2009. Failure to do so could result in a penalty.

Forms are filed online using HMRC’s PAYE Online for Employers service, which employers must first register with at http://www.hmrc.gov.uk. Once registered, there are several ways to file: HMRC’s free ‘Online Returns and Forms – PAYE’ service; commercial payroll software; or by Electronic Data Interchange (EDI) – a secure phone line suitable for large numbers of forms. Alternatively, a payroll agent or bureau can file it for you

A new podcast, which explains the changes, and offers help and advice on preparing for them, is available to download free from the HMRC website at http://www.hmrc.gov.uk/podcasts.

HMRC’s Simon Lidster said:

“If you’re an employer with 50 or more employees, and you’re not filing your P45s and P46s online, time is running out. Register now, so you don’t end up facing a penalty.”

“These employers also need to remember that their 2008-09 Employer Annual Returns must be submitted online to HMRC by 19 May. Returns are being accepted now, so we are urging employers to send them in as soon as they are ready.”

New Automatic Penalties for those who do not comply with National Minimum Wage Rules

From 6 April 2009, a new automatic penalty will be levied on employers where HMRC compliance officers find arrears of the National Minimum Wage (NMW) after 6 April 2009. Penalties will range from £100 to £5,000 and those employers who settle within 14 days of notification will receive a 50 per cent discount of the penalty for prompt payment. The penalty must be paid in addition to any arrears owed to the workers. The most serious cases of non compliance may be tried in a Crown Court and subject to an unlimited fine.

To reflect this change, the current system of separate NMW enforcement and penalty notices will be replaced by a combined notice of underpayment and penalty.

HMRC can pursue arrears claims for workers going back up to six years.

If you have any questions about the NMW you can call the National Minimum Wage Helpline in confidence on Tel 0845 6000 678.

Other changes

Several changes are being made to the powers of investigating officers to increase the efficiency of NMW enforcement. For example, from April 2009 our officers will be able to remove NMW records from an employer’s premises for a reasonable period in order to copy them. In addition, our officers will be able to remove a complete record, rather than have to determine the part that relates only to NMW.

The most serious NMW offences can, in future, be subject to prosecution in the Crown Court and liable to a potentially unlimited fine. This strengthening of the criminal regime shows how seriously the Government regard failure to pay the NMW or the obstruction of investigating officers.

Further information

More information about NMW can be found under ”Paying Your Staff” on the ”Employing People” pages of the Businesslink website.

BERR have also recently revised their guidance on the NMW.

To talk to the Payroll team at humphrey & Co if you are unsure of your obligations as an employer or need any other assistance whatsoever, please telephone our eastbourne office on 01323 730631 or send an email payroll@humph.co.uk

The rules of intestacy, whereby a person dies without having left a valid will, have changed with regard to the statutory legacies payable to surviving spouses and registered civil partners. The changes are effective for deaths from 1 February 2009.

The statutory legacies are now as follows:

1. Surviving spouse/civil partner and children

The surviving spouse/civil partner receives the first £250,000 of the estate as a statutory legacy together with the personal possessions. The legacy was previously £125,000.

If the estate is more than the statutory legacy, the remainder is divided equally between the surviving spouse/civil partner and children, with the surviving spouse/civil partner receiving an income for life from their half share and the children taking their share of the remaining half at 18 or earlier marriage. On the death of the surviving spouse/civil partner their share passes to the children equally.

2. Surviving spouse/civil partner or siblings and nephew and nieces

The surviving spouse/civil partner receives the first £450,000 of the estate as a statutory legacy, previously £200,000, together with personal possessions. In addition the surviving spouse/civil partner receives one half of the remainder of the estate over £450,000 with surviving parents receiving the remainder.

If there are no surviving parents the remainder passes to brother and sisters of the deceased or their children.

The remaining rules of intestacy remain unchanged.

The substantial increase in the statutory legacies could have a material impact on the amount received by family members, other than the surviving spouse or civil partner.

It is recommended that valid wills are in place to ensure that the rules of intestacy do not need to apply. Not only does a valid will mean that your estate will pass in accordance with your wishes but it ensures that you personally choose executors, who will have the responsibility of administering your estate, and you can make specific requests in the will such as funeral arrangements and guardians for minor children.

For more information or to arrange a consultation please contact Humphrey & Co on 01273 775814