Professional April 2023

PAYROLL NEWS

PAYROLL news

Wave goodbye to paper P11D forms HMRC CONFIRMED in its February Employer Bulletin that, from 6 April 2023, P11D forms cannot be submitted in paper format. This is hugely important for organisations who currently still use paper format P11Ds. What this means is that any P11Ds or P11D(b)s relating to the current tax year (2022/23) will need to be submitted online via HMRC’s pay as you earn (PAYE) online service or through commercial payroll software. Where organisations have up to 500 P11D and P11D(b) returns to submit, they can use the PAYE online service. Any paper forms submitted to HMRC on or after 6 April 2023 will be rejected, which will cause delays. Additionally, paper amendments to P11Ds will no longer be accepted. An online submission link for amended P11D and P11D(b) forms will be made available some time in April. If you or your client(s) are relying on paper P11Ds, you’ll need to ensure you amend your processes as soon as you are able to. Please note, however, that it’s still allowable to provide paper P11Ds to employees, just that HMRC will no longer accept paper P11D submissions.

Do you use the HMRC app? HM REVENUE and Customs (HMRC) uses an app and, to increase usage and uptake, has recently been promoting it. Over 340,000 people have used the app since July 2022 to easily access their employment and income information. The app can be used to access employment history and income information, check tax codes and find National Insurance numbers. Ordinarily, it could take up to ten days for this information to arrive in the post, following a phone call through to HMRC’s busy phone lines, which can often come with long wait times. On the app, however, this information is available instantly. The app can also be used to: l get tax estimates l calculate take home pay

l claim refunds if too much tax has been paid. It’s hoped that more widespread use of the app will reduce the number of queries directed to HMRC helplines, which will give operatives more time to liaise with those who have more complicated or urgent questions. There are links to use to download the app on both the Apple App Store and the Google Play Store, here: http://ow.ly/aM1L50Nl7Pp.

Further holiday pay case law IN A case that could have significant impacts for the gig economy, 49 medical couriers have been enabled to pursue their claims for unlimited backdated holiday pay in an Employment Appeal Tribunal. Please see here for further information: http://ow.ly/EVO550Nl944. The case was originally raised in 2018, when the medical couriers were represented by the Independent Workers’ Union of Great Britain. The claim for backdated holiday pay was made from their engager, The Doctors Laboratory, and for some individuals would date back as far as 1999. The couriers asserted that they were classed as workers, as opposed to being self-employed, meaning they would be entitled to paid annual leave.

Although the couriers haven’t yet been classed as workers, they have been granted backdated holiday pay for a period of two years. However, the appeal was delayed until the judgment from the Smith v Pimlico Plumbers case. More details around this case can be found here: http://ow.ly/aMNf50Nl9vw. This Court of Appeal stated that, as long as a worker claims for holiday pay within three months of the termination of an engagement, they’re entitled to retrospective unpaid holiday pay. Factoring this outcome in, the couriers’ case will be reheard at a new employment tribunal. If the couriers are deemed to be workers, this has the potential to open up many more cases in the gig economy.

Diary dates

5 May

Last day of tax month 1

6 May

First day of tax month 2

Last day for submitting a real time information employer payment summary to apply to tax month 12 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method

19 April

22 April (this is a weekend date)

Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method

5 June 6 June

Last day of tax month 2 First day of tax month 3

| Professional in Payroll, Pensions and Reward | April 2023 | Issue 89 10

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