• The following powers are not devolved to Welsh Government by the Wales Act 2014: • Ability to vary the tax free allowance • Ability to vary the threshold of the existing tax bands • Ability to introduce further tax bands • Ability for an individual to self-declare their residency status via a change to the starter checklist
Next Steps
To enable you to support these changes in your payroll software product, HMRC will provide revised technical specifications, updated test services and payroll guidance. Current plans are:
• Summer 2018 – revised schemas for the FPS, P6 and P9 to allow for a ‘C’ value in the Tax Regime • October 2018 – LTS, TPVS and OXG test services updated • January 2019 – payroll guidance (following Ratification of Welsh rates).
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2019-20 reporting of Euro 6d/RDE2-compliant diesel company cars 22 June 2018
HMRC’s Software Developers Support Team (SDST) has provided information about the exemption from the diesel supplement on company cars which meet the Real Driving Emissions 2 standard (RDE2).
“From April 2018 the diesel supplement on company car benefits increased from 3% to 4%. But an exemption from the diesel supplement became available for diesel cars which meet the Euro standard 6d emissions standard, also known as the Real Driving Emissions 2 standard (RDE2). For 2018/19 the processing of any exemptions is being facilitated through guidance. To implement the exemption fully from April 2019 when reporting Company Car Tax information employers will need to be able to indicate that a diesel vehicle meets Euro standard 6d, and is therefore exempt from the diesel supplement. This indication will be achieved by introducing a new value in respect of the fuel type data item. The new value will be given the key letter ‘F’.
From the 2019/20 tax year the fuel type data values that will be available will therefore be: • F – Diesel cars meeting Euro standard 6d • D – All other diesel cars • A – All other cars
The appropriate percentages for key letter ‘F’ will be the same as those for ‘A’ in 2019-20. Whilst HMRC is not aware of any plans for ‘F’ and ‘A’ to diverge, developers may want to allow for this possibility in future.
These changes will be effective from April 2019 in relation to the payrolling of benefits via RTI and the reporting of new cars via the P46car, and from April 2020 in respect of the reporting of benefits via the P11D process. Current plans are to provide the following:
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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