The latest Clay Shaw Butler Money Matters column from the Carmarthenshire Herald
The latest Clay Shaw Butler Money Matters column from the Carmarthenshire Herald.
By Mark Jones, director of Carmarthen-based Clay Shaw Butler chartered accountants and business consultants.
Anyone who has had to deal with putting a child through university will understand that student loans can be complicated.
It’s a bit of a test for mums and dads, but the end results are so worth it.
But what happens when student life is over and everyone has to put thoughts to repaying loans?
Well, the tax guys at HMRC have issued updated guidance to employers on how to deal with student loan deductions via the PAYE system.
Employers should familiarise themselves with the guidance which has been updated to reflect the introduction of plan 2 loans which are repayable from a different threshold but at the same nine percent basis.
With effect from the 2016/17 tax year there are two plan types for student loan repayments:
- plan 1 with a threshold of £17,495 (£1,457 a month or £336 per week)
- plan 2 with a threshold of £21,000 (£1,750 a month or £403 per week)
‘Start making student loan deductions from the next available payday using the correct plan type if any of the following apply:
- your new employee's P45 shows deductions should continue - ask your employee to confirm their plan type
- your new employee tells you they're repaying a student loan - ask your employee to confirm their plan type
- your new employee fills in a starter checklist showing they have a student loan - the checklist should tell you which plan type to use
- HM Revenue and Customs (HMRC) sends you form SL1 'Start Notice' - this will tell you which plan type to use
If they're still unable to confirm their plan type, start making deductions using plan type 1 until you receive further instructions from HMRC.’
If you would like any advice or help with payroll matters, please get in touch with the team here at Clay Shaw Butler.
Meanwhile, in other news, the employment advice service team at ACAS have some guidance on 'hot weather' working.
The guidance confirms that:
‘In the UK there is no maximum temperature that a workplace is allowed to be, rather advice from the Health & Safety Executive (HSE) states 'during working hours, the temperature in all workplaces inside buildings shall be reasonable.’
What is reasonable depends on the type of work being done (manual, office, etc) and the type of workplace (kitchen, air conditioned office, etc).
The HSE offers further guidance on workplace temperatures including details on carrying out an optional thermal comfort risk assessment if staff are unhappy with the temperature - Health and Safety Executive (HSE) - Temperature.'
The ACAS guidance also covers issues such as getting to work, keeping cool at work, fasting during hot weather, vulnerable workers and dress code during hot weather.
You can find out more on the ACAS website on the following link - http://www.acas.org.uk
You can find out more about money matters on the Clay Shaw Butler website (under our news for business section) -
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