PART 1: DATES, DEFINITIONS AND OBLIGATIONS
quarter, employers may have to send an Employer Payment Summary (EPS) to HMRC. This is necessary if the amount to be paid over differs from the amount HMRC will have derived from the FPS sent for that tax month/quarter, for example where statutory payment compensation or sub-contractor deductions suffered under CIS are due to be offset. The EPS for recoveries can be sent simultaneously with the FPS for the same payments (prior to 6th April 2015 this had to be sent between 6th and 19th of the following month) and contain YTD statutory payment figures. The EPS is also used to inform HMRC that no payments have been made to any payees for the tax month in question. An EPS for ‘no payment’ can be sent: • for up to 6 months at a time in advance • in-month (from April 2014) • retrospectively between 6th and 19th for the prior tax month that ended on 5th month. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS New employees Accurate data capture is vital to allow for matching with HMRC and DWP records. Employers are expected to verify key data: forename, surname, DOB, NINO, gender and address back to an official source (passport, P45 etc) before submitting it to HMRC. A new NINO verification service allows HMRC to supply and verify NINOs electronically to employers after receipt of an FPS. P45 forms are no longer sent to HMRC as a separate file but are fully incorporated into the FPS. All new employees should complete the new employee statement A, B or C questions even if they present a P45, preferably using the starter checklist at https://www.gov.uk/government/ publications/paye-starter-checklist. This was implemented from April 2014 at which point the P46 was removed. P45s are likely to be abolished in due course. Even if the P45 has been supplied by the new employer there are circumstances where the new employer will have to change the P45 instructions. Where an in-date P45 is supplied with codes other than BR, 0T or a D Prefix statement B is selected within payroll software and the code from the P45 is used. For P45s with BR, 0T or D Prefix statement C plus the P45 code is used. Where no statement is supplied then option C is used and code 0T/1 allocated. Whilst previous pay and tax are recorded they are not sent to HMRC as they will have been supplied by the previous employer. Payroll errors/ad-hoc salary advances Where a payment to an individual is made outside the payroll cycle to correct an error, the updated YTD figures should be supplied on a supplementary or next main FPS. The remittance to HMRC must not be adjusted until the corrective FPS has been sent. N rinting, copying or r produ tion permitted. Tax codes and student loan notices These are increasingly being downloaded by employers but continue to be received on paper on the rare occasion that they are necessary. Student loan notices received in respect of an off-payroll worker in the public sector are supposed to be ignored as SLD will not apply to such workers, however many employers have indicated that SL1 instructions will always be honoured. Each year the student loan deduction questions are revised to deal with changes in the SLD process. With the introduction of new loans and the increasingly divergent rules for Scotland and further changes have been made to cope with Plan type 4 coming due for repayment from 6th April 2021. For each change to SLDs HMRC revises the SL1 but not the P45 or P60 which remain with a single notification that a student loan requirement is in force.
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