Payroll news
PAYE penalties FOLLOWING A review of the effectiveness of the risk-based approach to PAYE (pay as you earn) late filing and late payment penalties, HMRC has confirmed that this approach will continue for the current tax year, which means late filing and late payment penalties will continue to be considered on a risk- assessed basis rather than issued automatically. The first penalties for this tax year (beginning 6 April 2020) were issued in September 2020. During the pandemic, employers have more time to appeal against a penalty, and can include problems caused by the outbreak as a reasonable excuse that prevented them from meeting their tax obligation. For more information about this, go to GOV.UK – reasonable excuses. HMRC is continuing to not charge penalties automatically if a full payment submission (FPS) is filed late but within three days HMRC webchat service SINCE SEPTEMBER, a webchat service has been available to the 2020/21 annual statement page in the business tax account within HMRC’s ePAYE online service. This service is part of a test and learn initiative which may become a permanent feature if after three months of trial HMRC decides it is has been successful. Finding NINo THE DEPARTMENT for Work and Pensions (DWP) is currently offering a reduced service for applications for National Insurance numbers (NINos). At present it is only possible to accept applications from those who were granted permission to work in the UK by the Home Office prior to them coming to the UK. To support the reinstatement of the NINo service, DWP Employer Bulletin ISSUE 86 of HM Revenue & Customs’ (HMRC’s) Employer Bulletin , which was published online in October (https://bit.ly/38Lp3lk), contains much payroll-related content, including: ● off-payroll working rules (IR35): Education and support available to customers ● UK transition – National Insurance and social security coordination
of the payment date and there remains no pattern of persistent late filing. Employers persistently filing after the statutory filing date but within three days will continue to be monitored and may be contacted or considered for a late filing penalty as part of HMRC’s risk-based approach. HMRC are advising employers not to ignore generic notification service (GNS) electronic warning messages that are intended to notify them that they have not filed or paid on time. HMRC send a message: monthly when it receives a FPS later than the payment date without a valid reason, or on the 11th or 12th of the month where it has not received either a FPS for the tax month that just ended on the 5th or an employment payment summary stating no employees were paid in that month. Those wanting to contact HMRC about PAYE for employers can, instead of making a telephone call, click the green button which may appear at bottom right of the page and ask a question and, depending on availability, begin a conversation with a person on HMRC’s employers’ helpdesk. is developing a digital solution to reintroduce the process incrementally during the autumn. Those who have a NINo, but cannot remember it, can use either their personal tax account, where they can save or print a copy of a NINo confirmation letter, or the HMRC app where they can share their ‘my details’ page with their employer. ● student and postgraduate loan refunds, and thresholds ● making PAYE settlement agreement payment ● disguised remuneration ● PAYE Online service for reporting P11D, P11D(b) and P46(car) ● update on the withdrawal of P45 and P60 bulk stationery ● corporate criminal offences.
Diary dates Last day for submitting a RTI employer payment summary to apply to tax month 8
19 December
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method – Add ‘2108’ to accounts office number to ensure accurate payment allocation Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method – Add ‘2108’ to accounts office number to ensure accurate payment allocation
22 December
Last day of tax month 9 First day of tax month 10
5 January 6 January
Last day for submitting a RTI employer payment summary to apply to tax month 9
19 January
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method – Add ‘2109’ to accounts office number to ensure accurate payment allocation Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method – Add ‘2109’ to accounts office number to ensure accurate payment allocation
22 January
Last day of tax month 10 First day of tax month 11
5 February 6 February
| Professional in Payroll, Pensions and Reward | December 2020 - January 2021 | Issue 66 30
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