Tag: HMRC

191 employers named and shamed for cheating their workers

  • Government names and shames 191 employers who have underpaid workers, including major household names
  • named firms have been fined for owing £2.1 million to over 34,000 workers
  • Business Minister Paul Scully: “Employers that short-change workers won’t get off lightly”

Today (Thursday 5 August) 191 businesses are being named for breaking national minimum wage law. Twenty-two of them are in Scotland.

Following investigations by Her Majesty’s Revenue and Customs, a total of £2.1 million was found to be owed to over 34,000 workers.

The breaches took place between 2011 and 2018. Named employers have since been made to pay back what they owed, and were fined an additional £3.2 million, showing it is never acceptable to underpay workers.

The UK government recently gave millions a pay rise, by increasing National Living Wage and National Minimum Wage rates in April 2021. The rise means someone working full time on the National Living Wage will be taking home £5,400 more annually than they were in 2010. Every single UK worker is entitled to the National Minimum Wage, no matter their age or profession.

Whilst not all minimum wage underpayments are intentional, it has always been the responsibility of all employers to abide by the law. Clear guidance is available on gov.uk, which all employers should check.

Minimum wage breaches can occur when workers are being paid on or just above the minimum wage rate, and then have deductions from their pay for uniform or accommodation.

The employers named today previously underpaid workers in the following ways:

  • 47% wrongly deducted pay from workers’ wages, including for uniform and expenses
  • 30% failed to pay workers for all the time they had worked, such as when they worked overtime
  • 19% paid the incorrect apprenticeship rate

Business Minister Paul Scully said: “Our minimum wage laws are there to ensure a fair day’s work gets a fair day’s pay – it is unacceptable for any company to come up short.

“All employers, including those on this list, need to pay workers properly.

“This government will continue to protect workers’ rights vigilantly, and employers that short-change workers won’t get off lightly.”

Employers who pay workers less than the minimum wage have to pay back arrears of wages to the worker at current minimum wage rates. They also face hefty financial penalties of up to 200% of arrears – capped at £20,000 per worker – which are paid to the government. Since 2015 the government has ordered employers to repay over £100 million to 1 million workers.

A significant number of the minimum wage breaches identified today affected those on apprenticeships. Today the government has published new guidance to ensure employers know exactly what they need to do to pay their apprentices, and all workers, correctly.

National Minimum Wage Naming Scheme Round 17, August 2021: educational bulletin (PDF, 541KB, 7 pages)

The government is committed to protecting workers’ rights and while the vast majority of businesses follow the law and uphold workers’ rights, the publication of this list serves as a reminder to employers that the government will take action against those who fail to pay their employees the minimum wage.

As well as advice for employers, HMRC offers advice for all workers on how to ensure they are being paid correctly via the Check your pay website.

Chair of the Low Pay Commission Bryan Sanderson said: “These are very difficult times for all workers, particularly those on low pay who are often undertaking critical tasks in a variety of key sectors including care.

“The minimum wage provides a crucial level of support and compliance is essential for the benefit of both the recipients and our society as a whole.”

nmw-naming-scheme-round-17-educational-bulletinDownload

One week left to renew for 300,000 tax credits customers

More than 300,000 tax credits customers have just over one week to renew their claims before the 31 July deadline, HM Revenue and Customs (HMRC) has warned.

As the deadline approaches, customers are being urged not to leave their renewal until the last minute and risk their payments being stopped. The quickest and easiest way to complete a renewal is via GOV.UK. Customers can manage their tax credits online.

Once tax credits customers have completed their renewal, they can use their online account to check its progress and find out when they will hear back from HMRC.

This year, about 28,000 customers have used the official HMRC app on their smartphone to renew their tax credits. The app allows customers to:

  • report any tax credits changes and complete their renewal
  • check their tax credits payments schedule, and
  • find out how much they have earned for the year.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Tax credits payments can provide our customers with vital financial support. There is just one week left to renew your claim – don’t delay and do it online by searching ‘tax credits’ on GOV.UK.”

Customers do not need to report any temporary falls in their working hours as a result of coronavirus. Unless their hours have permanently changed, they will continue to be treated as if they are working their normal hours for up to eight weeks after the Coronavirus Job Retention Scheme closes.

Any self-employed individuals who have claimed a Self-Employment Income Support Scheme grant will need to declare the grant payments. Search ‘working out your income for tax credit/self-employment’ on GOV.UK.

But if there is a change in a customer’s circumstances that could affect their tax credits, they must report the changes to HMRC. These include changes to:

·       living arrangements

·       childcare

·       working hours, or

·       income (increase or decrease).

Post Office card accounts are closing. From 30 November 2021, HMRC will stop making payments of Child Benefit, Guardians Allowance and tax credits, into Post Office card accounts. HMRC is reminding any tax credits and Child Benefit customers who use this account to receive their payments, that they will need to notify HMRC of their new bank account details.

HMRC is encouraging customers to act now so they do not miss any payments once their Post Office account closes. They can contact HMRC’s helpline (0345 300 3900), update their details while renewing tax credits or use their Personal Tax Account. To find out how to open a bank account, visit Citizens Advice.

HMRC is also urging customers to be careful if they are contacted out of the blue by someone asking for money or personal information. The department sees a high number of fraudsters calling, texting or emailing people claiming to be from HMRC. 

If in doubt, HMRC advises customers not to reply directly to anything suspicious, but to contact HMRC straight away and to search GOV.UK for ‘HMRC scams’.

When Someone Dies …

Metro Bank’s Bereavement Team Offers a Practical Guide to Bereavement Administration

When someone dies there is a lot of official paperwork that needs to be completed – some even comes with deadlines and fines if not processed properly and timely. As the UK’s community bank, Metro Bank has a specialist bereavement team to support anyone processing the administration at every stage through the bereavement process.

The team has created a practical guide to help everyone to understand what they need to do when dealing with the key stages of administration that surrounds a death.

“Losing someone is hard enough, without having to deal with all the official paperwork that has to be completed,” explains Dave Craggs, director of customer support, Metro Bank. “Our bereavement team has the empathy and expertise to guide and support at these difficult moments and this practical guide explains the key steps in the process that need to be taken.”

1.    The medical certificate of cause of death.

When someone dies, a doctor needs to issue a medical certificate for the cause of death. This is the first stage of managing the paperwork needed to process every aspect of bereavement administration.

The certificate needs to include the name, age, place and cause of death about the deceased.  If the cause of death is clear, this certificate can be issued straightaway, otherwise you can expect a delay until further investigations have been carried out. Once any investigations have been completed, a Coroners Certificate of fact of death will be issued and the death can then be registered.

2.    Registering the death

Every death has to be legally registered. If you’re in England, Wales or Northern Ireland, you will have five days to register a death.  In Scotland you have up to eight days.

You will need to make an appointment at the register office near to the place of death and bring the medical certificate of cause of death with some identification proof such as the deceased’s passport, driving licence or birth certificate to the appointment.  Once you have registered the death the registrar will issue you with the Death Certificate.

Full details can be found on the government website and the registrar will also explain about this government web page that enables you to tell the government about the death, so all of its agencies are simultaneously informed at once including- for example – state pension, disability benefits and council services.

3.    The Will & The Estate

If the deceased has a Will the named executor/s will deal with the estate. They will need to obtain a Grant of Probation by completing a probate form which can be found online here.as well as an inheritance tax form or by calling 0300 123 1072.

If there is no Will, a relative will be appointed as an administrator to deal with the estate. They will need to obtain Letters of Administration.

The deceased person’s property and belongings are called the estate.

Part of managing the estate includes the disposal of assets, payment of outstanding bills and debts as well as advising all the relevant organisations such as telecoms, social media, energy, financial services including insurance and banking for which there may be direct debits and standing orders as well as money and investments.

4.    The Bank

The deceased’s bank will play an integral part in the bereavement administration and each bank’s processes may vary slightly. If the deceased banked with Metro Bank, you can inform us in person by visiting your local Metro Bank store, by phone, or via post and ask for the support of the bereavement team. 

The bereavement team will take you through the process step by step.  You will need to supply them with some documentation including the original death certificate, or an interim death certificate plus proof of your identification (i.e. passport, driving licence etc.) as well as the original Will.

If there isn’t a Will the bereavement team can still help you with collecting a person’s estate, in line with Government guidelines.

Once the bereavement team has all the necessary documents, they can help organise any money, property and possessions held with us. We will then guide you through what happens with each type of account – be it current, savings, joint, loans, investment or credit cards and how any funeral invoices and inheritance tax can be paid and settled.

You’ll need to either visit us in store, email the Bereavement Team – bereavement.services@metrobank.plc.uk or via post to make these final arrangements and complete the necessary forms. We can also help with paying for the funeral – for example if there are sufficient funds belonging to the deceased in an account held with us, we can pay funeral costs directly to the funeral director. All we need is a final invoice. 

Alternatively, we can reimburse the funeral costs you have already covered. All you need to do is send us a proof of the payment and the person who made it, along with the final funeral invoice.

5.    Useful Links

Dave Craggs: “A person’s life is full of meaningful activity and interactions – each of which has to be closed off properly when they die.  Managing this entire process can take months and be complex depending on the volume of their personal contacts, possessions, property, money and investments, but help is at hand.”

There are many organisations that can help with this process including:

Metro Bank – Bereavement Team

UK Government – what to do when someone dies

Pension Tracing Service

HMRC

Citizen’s Advice

Bereavement Advice Centre

HMRC: 800,000 tax relief claims for working from home

Since April, almost 800,000 employees who have been working from home during the pandemic, have already claimed tax relief on household related costs, HM Revenue and Customs (HMRC) has revealed.

The saving is worth up to £128 per year for each employee in Scotland and eligible workers can claim the full year’s entitlement if they have been told to work from home by their employer, even if it has been for one day during the tax year.

Employees who have either returned to working in an office since early April or are preparing for their return can still claim the working from home tax relief and benefit from the full year’s relief for 2021/22.

It is quick and easy to claim via HMRC’s online portal. Employees can apply directly themselves and receive the full tax relief that is due. Once their application has been approved, their tax code will be automatically adjusted for the 2021/22 tax year, receiving the tax relief directly through their salary. Agents cannot use the online portal to apply on a customer’s behalf.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “More people are getting back to office working now, but it’s not too late to apply for tax relief on household expenses if they’ve been working from home during the pandemic.

“It’s quick and easy to check if you’re eligible and apply online – go to GOV.UK and search ‘working from home tax relief’.”

Since April last year, the maximum amount employers have been able to pay tax-free without employees having to provide evidence of an increased bill was set at £6 a week. Employees who have not received the working from home expenses payment direct from their employer can apply to receive the tax relief from HMRC.

Eligible customers can claim tax relief based on the rate at which they pay tax. For example, if an employed worker pays the 21% intermediate rate of tax and claims tax relief on £6 a week, they would receive £1.26 a week in tax relief (21% of £6 a week) towards the cost of their household bills.

Higher rate taxpayers would receive £2.46 a week (41% of £6 a week). Over the course of the year, this means customers can reduce the tax they pay by £65.52 or £127.92 respectively.

If employees were required to work from home in the 2020/21 tax year but did not claim for the tax relief, they have not missed out; HMRC will accept backdated claims for up to four years. They will receive a lump sum payment for any successful backdated claims.

HMRC can help towards the cost of children’s holiday activities

HM Revenue and Customs (HMRC) is reminding working families in Scotland that they can use Tax-Free Childcare to help pay for their childcare costs over the summer.

Tax-Free Childcare – a childcare top-up for working parents – can be used to help pay for accredited holiday clubs, childminders or sports activities – giving parents and carers that extra peace of mind that their child is having fun during the school summer holidays and it can save them money.

Tax-Free Childcare is available for children aged up to 11, or 17 if the child has a disability. And for every £8 deposited into an account, families will receive an additional £2 in UK Government top-up, capped at £500 every three months, or £1,000 if the child is disabled.

Parents and carers can check their eligibility and register for Tax-Free Childcare via GOV.UK. They can apply for an account at any time and start using it straight away. By depositing money into their accounts, families can benefit from the 20% top-up and use the money to pay for childcare costs when they need to, for example, during the summer holidays.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We want to help kids stay active this summer, whether they are going to summer holiday clubs or a childminder.

“A childcare top-up will go a long way towards helping parents plan and pay for summer activities to keep their kids happy and healthy. To find out more search ‘tax-free childcare’ on GOV.UK.”

Iain Stewart, UK Government Minister for Scotland, said: “There can be a lot of pressure on working parents to find suitable childcare during school holidays but the UK Government’s Tax-Free Childcare scheme gives a massive helping hand. 

“It helps parents ensure their children are in a safe environment where they’ll have fun and be well looked after, and it saves money at the same time. The Scottish school holidays are almost upon us and I’d urge all eligible parents to apply.”

15,240 working families used their account in March 2021 in Scotland. And in the same month, HMRC paid out more than £33 million in top-up payments, which was shared between more than 282,000 families across the UK.

Tax-Free Childcare is also available for pre-school aged children attending nurseries, childminders or other childcare providers. Families with younger children will often have higher childcare costs than families with older children, so the tax-free savings can really make a difference.

Childcare providers can also sign up for a childcare provider account via GOV.UK to receive payments from parents and carers via the scheme.

Scams warning for tax credits customers

Tax credits customers should be vigilant and alert to potential scams, HM Revenue and Customs (HMRC) has warned, as the remaining annual renewal packs will arrive in the post this week.

In the 12 months to 30 April 2021, HMRC responded to more than 1,154,300 referrals of suspicious contact from the public. More than 576,960 of these offered bogus tax rebates.

In the same period, HMRC has worked with telecoms companies and Ofcom to remove more than 3,000 malicious telephone numbers and with internet service providers to take down over 15,700 malicious web pages. HMRC responded to 443,033 reports of phone scams in total, 135% up on the previous year.

Anyone doing their tax credits renewal who has received a tax or benefits scam email or text might be tricked into thinking it was from HMRC and share their personal details with the criminals or even transfer money for a bogus overpayment.

HMRC’s Cyber Security Operations identifies and closes down scams every day. The department has pioneered the use in government of technical controls to stop its helpline numbers being spoofed, so that fraudsters can no longer make it appear that they are calling from those HMRC numbers. 

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We’re urging all of our customers to be really careful if they are contacted out of the blue by someone asking for money or bank details.

“There are a lot of scams out there where fraudsters are calling, texting or emailing customers claiming to be from HMRC. If you have any doubts, we suggest you don’t reply directly, and contact us yourself straight away. Search GOV.UK for our ‘scams checklist’ and to find out ‘how to report tax scams’.”

Many scams mimic government messages to appear authentic and reassuring. HMRC is a familiar brand, which criminals abuse to add credibility to their scams.  

If customers cannot verify the identity of a caller, HMRC recommends that you do not speak to them. Customers can check GOV.UK for HMRC’s scams checklist to find out how to report tax scams and for information on how to recognise genuine HMRC contact.

Tax credits help working families with targeted financial support, so it is important that people don’t miss out on money they are entitled to. Customers have until 31 July to notify HMRC of any change in circumstances that could affect their claims.

Renewing online is quick and easy. Customers can log into GOV.UK to check on the progress of their renewal, be reassured it is being processed and know when they will hear back from HMRC.

Customers can also use the HMRC app on their smartphone to:

  • renew their tax credits
  • check their tax credits payments schedule, and
  • find out how much they have earned for the year

Tax credits customers must report the changes to HMRC. Circumstances that could affect tax credits payments include changes to:

·         living arrangements

·         childcare

·         working hours, or

·         income (increase or decrease)

Customers do not need to report any temporary falls in their working hours as a result of coronavirus. They will be treated as if they are working their normal hours until the Coronavirus Job Retention Scheme closes.

Less than a month left to join VAT Deferral New Payment Scheme

Businesses that deferred VAT payments last year have one month left to join online to pay in monthly instalments under the VAT Deferral New Payment Scheme, HM Revenue and Customs (HMRC) has warned.

The online portal for the new payment scheme closes on 21 June 2021.

Over half a million businesses deferred £34 billion in VAT payments due between March and June 2020 under the VAT Payment Deferral Scheme. Businesses had until 31 March 2021 to pay this deferred VAT or, if they could not afford to do so, they could go online from 23 February to set up a new payment scheme and pay by monthly instalments to spread the cost.

Jim Harra, HMRC’s Chief Executive, said: “Businesses in Scotland that deferred paying their VAT last spring have until 21 June to join the VAT Deferral New Payment Scheme online. They should act now to avoid missing out on this opportunity to spread payment of their deferred VAT across monthly, interest-free, instalments.

“The new payment scheme is part of the Government package of support worth over £350 billion to help protect millions of jobs and businesses during the pandemic and as we emerge on the path to recovery.

“HMRC will continue to do all we can to help businesses as they reopen and rebuild.”

Jesse Norman, Financial Secretary to the Treasury, said: “Thanks to the Government, more than half a million businesses were able to defer their VAT payment last year. This provided support at a critical time, protecting millions of jobs and businesses during the pandemic and injecting £34 billion into the UK economy.

“The VAT Deferral New Payment Scheme means businesses can now manage their cashflow by paying their deferred VAT more gradually, continuing to protect jobs across the UK as we emerge from the pandemic and build back better.”

The March, April and May joining dates have passed, but businesses can still spread their payments across up to eight equal monthly instalments, interest-free, if they join by 21 June 2021. Payments can easily be set up via the VAT Deferral New Payment Scheme portal.

HMRC data to 30 April 2021 shows 228,850 businesses that deferred their VAT last year have already paid their VAT in full. This, along with instalments already made under the new payment scheme and other payment plans, totals £15.1 billion. Since the online service opened on 23 February 2021 another £11.5 billion has already been committed to future instalment payments by 134,627 businesses.

Eligible businesses that are unable to use our online service by 21 June 2021 can ring the HMRC Coronavirus Helpline on 0800 024 1222 to join the scheme until 30 June 2021.

Businesses may be charged a 5 per cent penalty and / or interest if they don’t join up to the scheme online by 21 June, or pay in full by 30 June, or contact HMRC to make an arrangement to pay by 30 June 2021. Businesses should also contact HMRC by 30 June 2021 if they need to agree extra help to pay.

More than 63,500 file Self Assessment on first day of tax year

HMRC urges others to follow

More than 63,500 customers filed their 2020/21 tax return online on 6 April, HM Revenue and Customs (HMRC) has revealed.

And with almost 950,000 online Self Assessment returns received so far this tax year, HMRC is urging others to do the same and file their tax returns early. Each year, thousands of people choose to file early, as soon as one tax year ends and the new one starts.

HMRC has seen a growing trend in early filers. In the last five tax years, the number of customers choosing to file on the first day of the new tax year has almost trebled from 22,885 in 2017 to 63,521 in 2021.

HMRC has today, published information to help customers file early – how to do it, what the benefits are, and what they need to get started.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “There are many advantages to completing your Self Assessment tax return sooner rather than later, not least that if you’re due tax refund you’ll get the money within a few days.  

“Our new online guide helps answer many of the questions customers have about Self Assessment. Go to GOV.UK and search ‘file your tax return early’.”

The Self Assessment guide will help customers navigate through the tax return process. Customers do not need to wait to submit their Self Assessment, they can file at a time that suits them and avoid any last-minute rush to meet the deadline on 31 January 2022.

It includes helpful information on:

·         How to get help with your tax return

·         What to do when declaring furlough payments, Self-employed Income Support Scheme grants or other COVID-19 support measures

·         What information you need before you can start your tax return

·         Help with paying your bill, and

·         What to do if you have paid too much tax

HMRC recognises that the pandemic has been a worrying time for Self Assessment customers and is doing all it can to support them accurately file their tax returns and meet their obligations. In addition to the factsheet, guidance and help sheets are available on GOV.UK.

Customers should also be aware of copycat HMRC websites and phishing scams. They should search ‘self assessment’ on GOV.UK to get the correct link for their Self Assessment tax return online securely and free of charge. They also need to be alert if someone calls, emails or texts claiming to be from HMRC, asking for bank or other personal details, threatening arrest or demanding a money transfer. It might be a scam. Anyone who is unsure can use the checklist on GOV.UK to help them decide if the contact they received is a scam.

Working from home? Scots may be eligible to claim tax relief

HM Revenue and Customs (HMRC) is accepting tax relief claims for working from home due to coronavirus during 2021/22. More than 550,000 employed workers have already claimed and are benefitting from the tax relief.

If employed workers were told to work at home by their employer because of coronavirus and, as a result, their household costs have increased, they are eligible to claim the working from home tax relief. It is quick and easy to claim via HMRC’s online portal.

HMRC received more than three million claims across the UK for the tax relief for the 2020/21 tax year.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Half a million people have already reduced their Income Tax this year by up to £125, by claiming tax relief on their working from home expenses.

“We want everyone who’s eligible to benefit, so we’ve made it quick and easy to do online. Check if you’re eligible and apply at GOV.UK by searching ‘working from home tax relief’.

“HMRC is continuing to help and support people affected by the pandemic.”

From 6 April 2020, the amount employers have been able to pay tax-free without employees having to provide evidence of an increased bill is up to £6 a week.

Employees who have not received the working from home expenses payment direct from their employer can apply to receive the tax relief from HMRC.

Eligible customers can claim tax relief based on the rate at which they pay tax. For example, if an employed worker in Scotland pays the 21% intermediate rate of tax and claims tax relief on £6 a week, they would receive £1.26 a week in tax relief (21% of £6 a week) towards the cost of their household bills.

Higher rate taxpayers would therefore receive £2.46 a week (41% of £6 a week). Over the course of the year, this could mean customers can reduce the tax they pay by £65.52 or £127.92 respectively.

Taxpayers can check if they are eligible via GOV.UK.

To claim for tax relief for working from home, employees can apply directly via GOV.UK for free. Once their application has been approved, the online portal will adjust their tax code for the 2021/22 tax year. They will receive the tax relief directly through their salary until March 2022.

If employees were required to work from home last year but did not claim for the tax relief, they have not missed out; HMRC will accept backdated claims for up to four years. They will receive a lump sum payment for any successful backdated claims.

Using an agent to apply for the working from home tax relief, and other similar schemes, could result in customers paying unnecessary fees or commission.

Using the GOV.UK service is free, and customers will receive 100% of the tax relief that is due. Agents will not be able to use the online portal to apply for the relief on a customer’s behalf.

Customers reminded to look out for tax credits renewals packs

HM Revenue and Customs (HMRC) is sending out about 2.5 million annual renewals packs to tax credits customers from this week. Customers should check their details in the renewal pack and report any change in circumstances to HMRC.

The packs will be sent out over the next six weeks and all customers should receive theirs by 4 June.

HMRC recognises that many tax credits customers will have been affected by the pandemic and may have earned less money than in previous years. It is important that customers check the details contained in their annual renewal pack are correct, including income details.

Renewing online is quick and easy. Customers can log into GOV.UK to check on the progress of their renewal, be reassured it is being processed and know when they will hear back from HMRC. Customers can also use the HMRC app on their smartphone to:

  • renew their tax credits
  • check their tax credits payments schedule, and
  • find out how much they have earned for the year

Tax credits help working families with targeted financial support, so it is important that people don’t miss out on money they are entitled to.

If there is a change in a customer’s circumstances that could affect their tax credits claims, they must report the changes to HMRC.

Circumstances that could affect tax credits payments include changes to:

·         living arrangements

·         childcare

·         working hours, or

·         income (increase or decrease)

Customers do not need to report any temporary falls in their working hours as a result of coronavirus. They will be treated as if they are working their normal hours until the Coronavirus Job Retention Scheme closes.

Criminals can take advantage of tax credits renewals to text, email or phone taxpayers offering ‘rebates’ or threatening them with arrest if they don’t pay bogus tax owed. Many scams mimic government messages to look authentic.

If someone contacts a customer claiming to be from HMRC, asks for bank or other personal details, threatens arrest or demands that they transfer money, it might be a scam.

Check GOV.UK for HMRC’s scams checklist, and to find out how to report tax scams and recognise genuine HMRC contact.

Customers can get help and information on renewing tax credits:

  • on GOV.UK: manage your tax credits
  • using our webchat service, by going to GOV.UK and searching ‘tax credits general enquiries’
  • by tweeting @HMRCcustomers or posting on HMRC’s Facebook page with general queries
  • by using the HMRC app, available via your phone’s app store
  • by calling the tax credits helpline: 0345 300 3900