Payroll insight
should equally not be simple – it should comprehensively provide for all needs and be provided in all formats. We welcome the opportunity to continue to work with HMRC on communicating this change and feeding into the increased guidance that is in the design process. The latest position In early October, a week or so after finalising the content of this article, we received notification of a significant development regarding the data items being added to report the employment allowance in EPS returns from the start of the 2020/21. These new data items are shown in the table. HMRC’s Software Developers Support Team emailed developers with this message: “We’ve had lots of feedback over the past few weeks, about employment allowance reforms from 06 April 2020, and its link to de minimis state aid. Many of the comments were in relation to data items 204/205, in the recently published RTI RIM artefacts and Data Items Guide for 2020 to 2021 .
In response to feedback, HMRC can now confirm that we do not require employers to calculate and report the amount of de minimis state aid in this data item.
because they are not engaging in economic activity: for example, charities, community amateur sports clubs, employing someone to provide personal care. The RTI schema for 2020/21 will not be amended; however, the amount of de minimis state aid received or anticipated (in euros) is no longer required – if one or more of the de minimis state aid business sectors has been selected (data items 199 to 202), complete item 204 with 0.00. If possible, software products should report 0.00 by default in these cases. Any figure that is supplied in this field will be disregarded by HMRC back- end systems and will not be stored or displayed, for example in Business Tax account. RTI schema for 2021/22 will be amended to remove data items 204 and 205 completely.” n
...decision to remove the
Employers still need to complete business sectors: ● ● data items 199 to 202 (all that apply) for businesses undertaking economic activity, this means providing goods or services to the market. Businesses do not have to make a profit: if others in the market offer the same goods or services, it is an economic activity. In the case of this allowance, this will apply to most businesses, or ● ● data item 203 where de minimis state aid rules do not apply to the employer requirement to report state aid amounts is very welcome
Conclusion The decision to remove the requirement to report state aid amounts is very welcome. And it demonstrates that we can bring change.
Off-payroll working and other employment status considerations
One day
This course explains how to assess employment status, the financial risk of getting it wrong, the right to work in the UK and a variety of modern employment practices. It covers recent developments such as the IR35 process changes (‘off-payroll working’) and possible future developments following various Government consultations.
This course covers: ● Optional remuneration arrangements ● Legislation and salary sacrifice case law ● Contractual implications ● Effective arrangements ● Payroll implications ● Salary sacrifice and noncash options
Book online at cipp.org.uk/training , email info@cipp.org.uk or call 0121 712 1000 for more information.
cipp.org.uk CIPP_UK cip .org.uk @CI P_UK
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| Professional in Payroll, Pensions and Reward |
Issue 55| November 2019
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