The Chartered Institute of Payroll Professionals
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HMRC calculator issues resolved 6 May 2021
The CIPP recently reported that there were issues with a couple of the HMRC calculators that are available online to help employers with various payroll calculations. These problems have now been fixed.
The calculator for use when establishing National Insurance (NI) for company directors has been amended so that it now works correctly. The previous issue related to incorrect calculation of employer NI contributions where the total cumulative pay was higher than the Secondary Threshold of £8, 840 (ST) for tax year 2021-22, at which point employers start paying employer NI contributions, but lower than the Primary Threshold (PT) of £9,568 per year. This issue has now been rectified, and the calculator is producing the correct figures for employer NI. The Company Car and Car Fuel Benefit calculator has also been fixed. Previously, where the figure provided via an Optional Remuneration Arrangement (OpRA) was higher than the cash equivalent of the calculated car benefit, the tool was failing to replace the car benefit charge with the higher OpRA figure. This issue has now been resolved, and the calculator is producing the correct results.
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Updates to the CEST Tool landing page 7 May 2021
The changes made relate to the legislative changes to the off-payroll working rules, which were effective from 6 April 2021. HMRC has confirmed that the CEST tool itself has not been amended, and the underlying logic of the tool remains unchanged.
There is a link to HMRC’s CEST aggregate data, which provides details of the usage of the tool following the launch of the enhanced version, that was made available in November 2019.
The amendments to the landing page were made as a direct result of customer feedback, which suggested that further content needed to be added to streamline the user journey, and that there needed to be clearer signposts to existing guidance.
CIPP comment
The CIPP attends meetings held by the Off-Payroll Working Programme, so if you have any feedback or comments on the new style of the landing page for the CEST tool, or any wider comments about the off-payroll working reforms, then please contact the Policy team, at Policy@cipp.org.uk.
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