Payroll news
Employer Bulletin ISSUE 68 of HMRC’s Employer Bulletin, which can be found at http://bit.ly/2mlTIPI, includes the following content. ● Valuation of benefits in kind – updates to the P11D and P46 (Car) returns – Some of the descriptions in data submissions for P11D returns will change: ‘cost to you’ (or similar) descriptors will read ‘cost to you or amount foregone’; ‘cash equivalent’ descriptors will read ‘cash equivalent or relevant amount’. There are no additional boxes. The P46(Car) return data will have a new field ‘cash forgone’ for the car only (excluding fuel, maintenance or any other attributable service). This is to be completed whenever there is an optional remuneration arrangement (OpRA) in place. New versions of the P11D and P46(Car) returns will be available shortly, and the online version of the P11D being available from 6 April 2018. HMRC will be issuing a technical consultation paper containing draft amendments to the Income Tax (Pay As You Earn) Regulations, explaining the information that employers registered for voluntary payrolling of car benefits will be required to report and how it should be submitted to HMRC. The paper will also clarify the taxable amounts that need to be reported under OpRA. ● Paying HMRC at the post office – From 15 December 2017, anyone using the Transcash service at the post office to pay HMRC will need to use an alternative method. ● HMRC’s new dedicated tax support service for growing mid-sized businesses – HMRC’s new Growth Support Service will be tailored to their needs of businesses with a turnover of more than £10 million or at least twenty employees. For further information on eligibility to use the service go to: http://bit.ly/2hhL3rK. NICs Bill delayed IN A written statement to the House of Commons, on 2 November, the Exchequer Secretary to the Treasury announced that in 2018 the National Insurance Contributions (NICs) Bill will be introduced to have effect from April 2019 (http://bit.ly/2iQR8wc). The measures include abolition of Class 2 NICs, reforms to the NICs treatment of termination payments, and changes to the NICs treatment of sporting testimonials. The one-year delay to the Bill will allow time to engage with concerns relating to the impact of the abolition of Class 2 NICs on self-employed individuals with low profits to ensure that there are no unintended consequences for the lowest paid.
And briefly… ● Student loan repayment threshold – HM Revenue & Customs (HMRC) has advised that from the start of tax year 2018–19, the annual repayment threshold for plan 2 loans will be £25,000, and for plan 1 loans it will be £18,330. ● Welsh rate of income tax – From April 2019, the UK government will reduce by 10p each of the basic, higher and additional rates of income tax paid by Welsh taxpayers. The National Assembly for Wales will decide the three Welsh rates of income tax, which will be added to the reduced UK rates. ● RTI EAS obsolete – Since 16 October 2017, real time information (RTI) employer alignment submissions (EAS) are not being processed by HMRC’s systems and no EAS acceptance or rejection message sent to the employer. ● RTI data items 2018–19 – The RTI rules and interface management artefacts and supporting technical specifications for software developers for tax year 2018–19 have been published (http://bit.ly/2zCzpm3). Data item 192 requires entry of the student loan plan type in the pay period, and the wording of data item102 has been amended. ● Paying HMRC by credit card – From 13 January it will not be possible to pay HMRC online using a personal credit card. Trade union deductions from earnings The Trade Union (Wales) Act 2017 (‘the Act’), which came into force on 13 September 2017, applies to devolved Welsh public bodies and to trade unions in public services delivered by devolved Welsh public bodies. The latter includes the Welsh National Health Service, local authorities, schools, fire services and Welsh government sponsored bodies in Wales, but does not extend to services provided by a contractor to a devolved Welsh public body.
Diary dates
5 December
Last day of tax month 8
6 December
First day of tax month 9
Last day for submitting a RTI employer payment summary to apply to tax month 8 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method Automatic enrolment staging date for new employers where PAYE income first payable between 1 October 2016 and 30 June 2017
19 December
22 December
1 January
5 January
Last day of tax month 9
6 January
First day of tax month 10
Last day for submitting a RTI employer payment summary to apply to tax month 9 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method Automatic enrolment staging date for new employers where PAYE income first payable between 1 July 2017 and 30 September 2017
19 January
22 January
1 February
| Professional in Payroll, Pensions and Reward | December 2017/January 2018 | Issue 36 16
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