We passed on the full results of our survey to the Department for Work and Pensions, who are leading on these reforms and we shall continue to work with them through to consultation and change, in whatever form that may be. We will most certainly be calling on you, the payroll professionals, again, for your expertise and opinions.
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Send an Earlier Year Update using Basic PAYE Tools 11 June 2019
The guidance to Send an Earlier Year Update using Basic PAYE Tools has been updated for the tax year 2019 to 2020.
Send an Earlier Year Update using Basic PAYE Tools
FPS to replace EYU From April 2020, any Earlier Year Update (EYU) amendments must be reported on the FPS. The EYU is currently used to report revised Year to Date (YTD) payment data after the 19 April deadline. This information will now be reported on the FPS, enabling the quicker alignment of HMRC systems with employer payroll records. The change will happen on 20 April 2020. However, to help employers adjust to the new system, HMRC will adjust its systems so that they can accept either the EYU or the FPS to report year-to-date amendments from 20 April 2019. Payroll systems may need to be updated so that they can produce a suitable FPS file (date validation rules might currently prevent it). However, once an employer has chosen a method to use for reporting any 2018-19 amendments, it must continue to use that method for the rest of the tax year.
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Income Tax and National Insurance contributions for NHS WATS courses 14 June 2019
For NHS employees who attend training courses, often known as widening access training scheme (WATS) courses, tax and NICs will be due on payments made for courses starting from 1 September 2019.
Guidance on how to apply the tax rules for NHS employees who attend WATS courses has been updated to explain that no refunds of Income Tax and National Insurance contributions can be made for WATS courses starting on or after 1 September 2019.
When tax and National Insurance contributions should be deducted
Courses starting before 1 September 2019 If you’re not currently deducting tax or National Insurance from payments and the course starts before 1 September 2019, you should carry on paying your employee in this way until the course is finished.
If tax and National Insurance has not been paid in the past, HMRC will not ask you to pay it. If you’re already deducting tax or National Insurance, you should continue to do this.
Courses starting on or after 1 September 2019 You must deduct tax and National Insurance on any payments made to employees taking part in these courses.
How to deal with employees’ refund requests You may have been giving refunds to employees or former employees where you’ve deducted tax or National Insurance from their pay when they were attending a course.
Refund requests received before 1 September 2019
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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