As part of its digitisation of communications project, HMRC has announced that it intends to withdraw P60 and P45 stationery from tax year 2020-2021 onwards.
Employers are urged to order any P60 or P45 paper now, as HMRC hopes that the bulk of requests will be made in March and April, but will still honour requests for P60s made in May and June. The stance on P45s is slightly different as, unlike P60s, they don’t have a specific shelf life so P45 stationery will be withdrawn indefinitely in Apri l. HMRC will be writing to smaller employers who make regular P60 and P45 orders to advise them of the changes, so if this is applicable to you, please expect to receive formal notification shortly. The resounding message is that most payroll software has the functionality to print P60s and P45s on plain paper, so the move shouldn’t have a significant impact on a large number of payroll departments. In fact, it should be applauded, as the changes signify a move towards a more environmentally friendly HMRC.
It has been confirmed that HMRC’s Basic PAYE Tools (BPT) also offers the option to print P60s and P45s for the small companies that utilise it.
HMRC will still work alongside employers who have an agreement in place that means that they are exempt from online payroll reporting and Real Time Information (RTI). They will still be able to continue to report their payrolls on paper.
CIPP comment
The CIPP is relieved that HMRC will continue to offer P60 stationery to employers in relation to the current tax year. Previous communications seemed to suggest that the document would be withdrawn from April, with no further distribution for requests made in May and June. HMRC’s recent confirmation that they continue to supply P60 stationery to employers who make requests in May and June is extremely welcome, as this gives employers a whole 12 months to source another provider, should they still require the paper to print P60s at the end of tax year 2020-21.
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HMRC launches consultation into its draft revised charter – have your say! 2 March 2020
HMRC is planning to update its charter which outlines the standards of behaviour and values that HMRC aspires to when interacting with customers - effectively what customers can expect from HMRC, and what HMRC expects from its customers. HMRC’s charter is a legal requirement under the Finance Act 2009 section 92, and the legislation states that the charter ‘must include standards of behaviour and values to which Her Majesty’s Revenue and Customs will aspire when dealing with people in the exercise of their functions.’ There is also a legal requirement for the charter to be regularly reviewed and for the revisions to be published. The charter was last reviewed and completed in August 2015. HMRC initiated the current review into the charter back in September 2019 and the ambition is for the revised charter to communicate the experience that it wants to deliver to customers more effectively. Recommendations were made by both the Loan Charge Review and the House of Lords Economic Affairs Committee Report ‘The Powers of HMRC: Treating Taxpayers Fairly’ in relation to the charter, and they have been accepted and acknowledged in revising the charter.
The consultation period will run from Monday 24 February to Friday 15 May 2020, in which time HMRC welcomes comments on all aspects of the revised draft charter and how HMRC uses it.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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