MY CIPP
PAYROLL news
Dedicated escalation process for payroll agents for queries more than four weeks old EXCHEQUER SECRETARY to the Treasury, James Murray, announced a big future change regarding HM Revenue and Customs (HMRC). Payroll agents will have rejoiced at the news that there could be a dedicated escalation process for HMRC queries which are taking over four weeks to resolve. In the associated press release, it confirms:
“As part of this government’s commitment to partner and learn from industry, HMRC will launch a new service to provide an escalation route for agents with Self Assessment and PAYE queries which are over 4 weeks old. A dedicated team of experienced technicians and advisers will adopt a ‘once and done’ approach, taking end-to-end ownership of cases and maintaining regular communication with agents.” It seems that agents will be given named contacts within HMRC who will own the query until it’s resolved. Please note that this only applies to agents at the time of writing, but it will be interesting to see if this is rolled out more widely in the future. You can see the announcement here: https://ow.ly/HouG50Vu30N.
Response to consultation concerning tackling non- compliance in the umbrella company market published WITHIN ITS consultation response, HM Treasury has announced the next steps to be taken in relation to tackling non-compliance in the umbrella company market, along with some potential implementation dates. Non-compliance in this space diminishes workers’ rights, impacts legitimate businesses and reduces tax receipts. The consultation response can be accessed here: https://ow.ly/ fIEj50Vu3EG. There are two main actions to be taken:
l to define umbrella companies within legislation, to bring them into the scope of the Employment Agency Standards Inspectorate, and the Fair Work Agency, once this has been established l to move the responsibility for pay as you earn (PAYE) from the umbrella company that employs a worker across to the recruitment agency that supplies the worker to the end client. If no recruitment company is involved, then the responsibility lies with the end client. These changes could potentially have big impacts on the labour supply market but will ultimately mean that businesses must take on the responsibility of ensuring PAYE is operated compliantly. This doesn’t necessarily mean they’re the ones administering the PAYE scheme, as employers could still outsource this, even to the umbrella company. What it does mean is that they must carry out their own due diligence in ensuring the supply chain doesn’t involve non-compliant practices, or they could end up facing the associated fines. It’s expected that these changes will be legislated for and take effect from April 2026.
Diary dates
Last day of tax month 2
5 June 6 June
First day of tax month 3
Last day for submitting a real time information employer payment summary to apply to tax month 1 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
19 May
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
22 May
31 May (This is a weekend date)
Employees on payroll as of 5 April 2025 need a P60 by this date
Last day of tax month 3 First day of tax month 4
5 July 6 July
| Professional in Payroll, Pensions and Reward | May 2025 | Issue 110 12
Made with FlippingBook - Online magazine maker