CIPP Payroll: need to know - 2022-23

`The Chartered Institute of Payroll Professionals

News On Line

Published: 28 March 2023 Emailed: 29 March 2023

Manual calculation fans rejoice!

The 2023 / 24 manual method tax calculation tables are here and are essential for payroll professionals to perform manual checks of calculations. The new tables reflect all the changes to the additional rate, and Scottish rates coming into effect from 6 April 2023.

Table A remains unchanged as the personal allowance is currently frozen.

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Beneficial loan arrangement rates to increase from 6 April 2023 Published: 28 March 2023 Emailed: 29 March 2023

Along with many other changes coming from 6 April 2023 for the new tax year is an increase to the beneficial loan interest rates.

From 6 April 2023, the actual official rate will increase from 2.00% to 2.25% after spending two years at the lower rate.

As this is changing from 6 April you won’t need to worry about this in situations where you need to use the yearly average, sush as the normal averaging method of calculation.

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Tax and NI exemption on Covid-19 tests ending Published: 28 March 2023 Emailed: 29 March 2023

As we reach the 2023/24 tax year, we see the end of the last few coronavirus-related easements. One such policy was the exemption from income tax and National Insurance contributions for employer provided of reimbursed COVID-19 diagnostic tests. This gave employers the ability to provide or reimburse test kits without a financial impact on the employee for the 2022/23 tax year. However, this policy has not been renewed for the 2023/24 tax year and so will no longer be in effect from 6 April 2023.

It would be advisable to check if you have incorrectly processed the provision or reimbursement of qualifying items for 2022/23 and amend internal policy and processes to reflect the correct legislation from 6 April 2023.

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HMRC clarification: Operation of the multi-state worker social security coordination rules Published: 4 April 2023 Emailed: 5 April 2023 HM Revenue and Customs (HMRC) has been approached about a technical question relating to the operation of the multi-state worker social security coordination rules. HMRC does not currently have technical guidance published on this question so HMRC has provided its view on the understanding that it has shared with the Expat forum, which the CIPP sits on. Please note this is HMRC’s International Social Security Policy team’ s view at this time and may be subject to change.

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