Payroll news
Employer Bulletin THE JUNE 2021 edition of the Employer Bulletin (http://ow.ly/r38330rL4Fw) contains extensive important content. This issue includes the following. ● NINo allocation – The National Insurance number (NINo) application digital service (http://ow.ly/XkGO30rL4GH) for adults who have not been allocated a NINo is now available, but due to current high demand the processing of applications can take up to sixteen weeks. The Department for Work and Pensions has resumed its face-to-face service for those applicants who may have to physically attend a meeting to have their identify verified. ● HMRC’s ‘pay by bank account’ – Payments can now be made directly to HM Revenue & Customs (HMRC) without entering payment card details. From within the HMRC domain, customers connect to their online banking to authorise a secure payment with details pre-populated and the correct payment reference number used. Although initially open only to customers using their online accounts, the service will be extended to others. Payroll services boss banned SCOTT IAN Rooney, sole director of payroll services company Magnetic Push Limited, has been banned by the High Court from being a company director for eleven years. An investigation by the Insolvency Service found that the company Magnetic Push, which traded for eleven months before going into liquidation, was playing an active role as an umbrella company in a wider tax avoidance scheme. The absence of books and records meant investigators could not establish genuine company expenses from almost £37,000,000 that had left the company account between February and December 2017 nor the reasons behind the company’s failure. (http://ow.ly/HeJa30rL57P) Response to SEB consultation THE DEPARTMENT for Business, Energy and Industrial Strategy (BEIS) has published its response (http://ow.ly/K3er30rL4S2) to the 2019 consultation on the creation of a single enforcement body (SEB) which sought views on: the core remit of a new body; interaction with other areas of enforcement; the approach to compliance; and the powers such a body would need. The government will proceed with plans to bring together the existing labour market enforcement bodies. The SEB will combine the Gangmasters and Labour Abuse Authority, the Employment Agency Standard Inspectorate, and parts of HMRC. Amongst other things, the SEB’s remit will include holiday pay for vulnerable workers, which is currently not enforced.
And briefly… ● Taxable benefit charge – returning office equipment – Businesses are reminded that a benefit charge arises on office equipment purchased by the employer for their employees working from home and ownership of the equipment is transferred. ● HMRC’s dedicated agent line – This service has been relaunched with the aim of delivering high levels of customer service. Online digital services should be utilised for certain queries, to keep the line free for those who really need it. HMRC has confirmed that it is also currently carrying out work to enhance digital services for agents. ● Latest furlough figures – The most recently available set of coronavirus job retention scheme (CJRS) figures (http://ow.ly/ffZg30rL58X), reveal that the number of employments furloughed decreased by 900,000 in the period 31 March 2021 to 30 April 2021. Since the introduction of the CJRS, in March 2020, a total of 11,500,000 jobs have been placed on furlough at various times. A new tax year end date? THE OFFICE of Tax Simplification (OTS) has recently published a scoping paper (http://ow.ly/uXBC30rL4Pc) which explores the potential of changing the tax year end date from 5 April to either 31 March or 31 December. The transitional tax year would be shortened by five days or three months and five days.
Diary dates
P11D submission date (to both HMRC and employees) P11D(b) submission date Last day for submitting a real time information employer payment summary to apply to tax month 3 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non- electronic method. Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method.
6 July
Advisory fuel rates THE ADVISORY fuel rates changed with effect 1 June 2021 and apply, until further notice, to all journeys made on or after this date. For one month from the date of change, employers could choose to use either the previous or revised rates. Employers may therefore make or require supplementary payments if they so wish but are under no obligation to do either.
Engine size Petrol Diesel
LPG
Up to 1400cc
11p
8p
9p
1401cc to 1600cc 1601cc to 2000cc
19 July
13p
9p
11p
Over 2000cc
19p 13p 14p
22 July
HMRC will accept that if the employer pays up to 4 pence per mile when reimbursing their employees for business travel in a fully electric company car there is no taxable profit and no class 1 National Insurance contributions (NICs) to pay. The advisory electricity rate will be published alongside advisory fuel rates and kept under review.
5 August 6 August
Last day of tax month 4
First day of tax month 5
| Professional in Payroll, Pensions and Reward | July/August 2021 | Issue 72 16
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