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Completing an EYU in respect of Employee’s NICs 22 August 2018
HMRC has amended the guidance on GOV.UK to make it easier to understand when completing an Earlier Year Update (EYU) which includes a negative amount of Employee National Insurance (NICs).
The new guidance explains:
If the difference is negative (because you deducted or reported too much National Insurance), you also need to set the ‘NIC refund indicator’ to:
‘ Yes ’ if you’ve refunded your employee or no refund was due ‘ No ’ if you still owe your employee a refund (for example because they’ve left your employment).
This information was highlighted in HMRC’s August Employer Bulletin.
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NICs settlement return – NSR Appendix 7A and 7B 22 August 2018
If you operate an Employment Procedures appendix 6 tax equalisation agreement for employees working abroad, HMRC has published updated versions of the National Insurance contributions settlement returns (NSR) - Appendix 7A and 7B.
PAYE: National Insurance contributions settlement return (NSR Appendix 7A)
PAYE: National Insurance contributions settlement return (NSR Appendix 7B)
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Class 1A National Insurance contributions on termination payments 25 September 2018
Following a discussion at HMRC’s Employment and Payroll Group (EPG) meeting on Friday 21 September we now know that the proposed Class 1A National Insurance contributions on termination payments will not be reported through the FPS for 2019-20.
However, it was confirmed that the Government does still intend to impose an employer Class 1A NICs liability on the taxable portion of a termination payment, but Ministers have not yet decided on an implementation date.
Even at this late stage, implementation from April 2019 is still a possibility, but if it is implemented for the 2019-20 tax year it is more likely, at least as an interim arrangement, to be an annual charge reported and payable in July 2020 on a P11D(b) along with other Class 1A NICs liabilities, though we know that in the longer term the Government still intending that payment would be in real time. There is still much to be confirmed, not least because we still don’t have a definite implementation date, but if payroll software is going to help employers keep track of the payments they have made and calculate the Class 1A arising then we need that confirmation quickly.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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