The Chartered Institute of Payroll Professionals
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More than one employee correction:
HM Revenue and Customs, National Insurance Contributions and Employer Office, BX9 1BX
HMRC will contact employers when the refund and adjustment have been made, and the adjustment will also be reflected on Business Tax Accounts.
The process for correcting tax years prior to 2020-21 has not changed.
Correcting Seasonal Worker payroll using Basic PAYE Tools
The ‘irregular payment’ indicator needs to be selected on all submissions for any Seasonal Workers on payroll from April 2021. This will mean that any future corrections that need to be made using a further Year To Date FPS are reported correctly. If the ‘irregular payment’ indicator is not selected on an earlier submission, and there is the need to make a correction, then the question ‘Do you wish to submit this correction immediately?’ should be answered with yes. This can be found on the ‘Add an Employee Payment’ screen, within the ‘Other Details’ section.
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Use software to send Income Tax updates: service availability and issues 16 April 2021
Due to scheduled maintenance, you will be unable to access this online service from 5pm on Friday 16 April 2021 to 5pm on Monday 19 April 2021.
The issue was reported on HMRC’s – Use software to send Income Tax updates: service availability and issues.
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Changes to PENP: 6 April 2021 22 April 2021
As a reminder, there were some changes to the calculation of Post-Employment Notice Pay (PENP) from 6 April 2021, for payroll professionals to be aware of.
The calculation applies to employees who are paid on a monthly basis but do not have a notice period that is not expressed in months. The way the previous ‘standard formula’ was operated unfortunately meant that different outcomes would be provided on the basis of which calendar month employment was terminated. This was because it utilised the number of days within a pay period as one of the elements of the calculation, which could vary between 28 and 31 days. The amendment to the calculation means that there will be more consistency, as now the average number of days in the month has to be used, which equates to 30.42 days. An amendment has also been made to section 27 ITEPA 2003, which will mean that non-resident individuals are now also liable for UK tax and National Insurance (NI) contributions on PENP, as they would have been had their period of notice been worked in the UK.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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