The Chartered Institute of Payroll Professionals
News On Line
Back to contents
Reporting PAYE information when payments are made early at Christmas 14 October 2021
Since 2019, there has been a permanent easement for reporting PAYE information in real time where employees receive their pay earlier than usual at Christmas.
Where an employer closes on the usual (contractual) payday, such as at Christmas or on bank holidays, HMRC advises to report the contractual pay day on the full payment submission (FPS).
An example provided for Christmas by HMRC is “if you pay on Friday 17 December 2021 but the normal (or contractual) payment date is Friday 31 December 2021, please report the payment date on the FPS as 31 December and ensure the submission is sent on or before 31 December 2021.” The normal PAYE reporting obligation for employers is unaffected by this easement and you must still report payments on or before the date employees are paid, outside of the Christmas period. The pay date recorded on the FPS, however, should always be the contractual pay date. Doing this will help protect any employees’ universal c redit eligibility, avoiding double monthly earnings in one assessment period. Where two payments are received in one assessment period, universal credit can be reduced, as it is a means-tested benefit. Where individuals are paid on a weekly, fortnightly or four-weekly basis there will always be occasions where more than one payment is made within an assessment period. In these instances, amending the reporting will only move the issue into a different period.
CIPP comment
In relation to a judgment issued in November 2020, the CIPP provided evidence from the Payslip Statistics Survey. This evidence contributed to the ruling handed down and the amendment of the HMRC reporting rules, to protect those on universal credit affected by this issue.
Back to contents
Veterans NI Update 26 October 2021
HMRC has released updated guidance for developers on the National Insurance Contributions (NICs) Holiday for Employers of Veterans (NHEV).
NIC category “V” will be used for NHEV, this mirrors existing letter “A” only. Where a veteran employee would be on a different category (B, T, C, W, J or Q), the standard category should continue to be applied. As this occurrence should be uncommon, HMRC are advising that employers contact them at the end of the tax year to arrange a manual adjustment for the overpaid NICs.
Within the document it lays out how the retrospective adjustment process will work for tax year 2021/22.
Employers who are not existing users of HMRC’s Basic PAYE Tool (BPT) or cannot use their payroll software to retrospectively apply the veteran category will be able to write to HMRC from 06/04/22 to request relief. The relief should only be claimed in this way if employers are unable to self-serve through software.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
Page 149 of 220
Made with FlippingBook - Online magazine maker