CIPP Payroll: need to know - 2022-23

`The Chartered Institute of Payroll Professionals

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Question: How do the Social Security Coordination applicable legislation rules treat a situation where an individual is working across three countries, in two countries this is employed activity and in a third country this is self-employed activity? Article SSC.12 sets out the rules to determine which legislation applies where an individual who is in scope of the Social Security Coordination (SSC) Protocol to the UK-EU Trade and Cooperation Agreement is normally working in two or more States. Where a person normally carries out an employed activity and a self-employed activity in two or more States, the worker shall be subject to the legislation of the State in which they carry out their activity as an employed person. Where the worker carries out an employed activity in two or more States, when considering whether the worker is carrying out a substantial activity in their State of residence HMRC would disregard the self-employed activity. The approach is the same as when assessing applicable legislation under EC Regulation 883/2004.

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Employer Bulletins

Employer Bulletin: April 2022 Published: 14 April 2022 Emailed: 20 April 2022

Here are the highlights payroll professionals should be aware of in the latest Employer Bulletin from HMRC. As always, if more information is required, please read the full bulletin for more information and links to relevant resources.

PAYE • PAYE Settlement Agreement (PSA) deadline – The deadline for applying for a PSA or amending an existing PSA is 5 July 2022. • The electronic payment date of 22 May 2022 falls on a Sunday. Funds will therefore need to clear into HM RC’s account by 20 May 2022. • Clarification on the classification of company cars or vans for benefits in kind purposes. • Expenses and benefits for tax year ending 5 April 2022. Details on the different ways employers can report their expenses and benefits, join payrolling for 2023/24, P11D deadline of 6 July 2022 and payment of Class 1A National Insurance (NI). • The official rate of interest for 2022/23 is 2%. This rate is to be used to calculate the income tax charge on the benefit of employment-related loans and taxable benefit of employer-provided living accommodation. • Student and postgraduate loans. A reminder of the generic notification process, rates for 2022/23 and not to deduct student loan for an employee who is subject to the off-payroll working rules. • Freeports employer NI relief, a reminder of the new relief and where exemptions to the 60% rule apply. • Claims process for the employers NI holiday for veterans is now live. • Employment Allowance from April 2022. How to claim and check eligibility. Coronavirus (COVID-19) updates • Extended loss carry back. A reminder of the easement that allows companies to make claims for losses in previous accounting periods. • A reminder to declare coronavirus grants on company tax returns. This includes the Coronavirus Job Retention Scheme (CJRS) grants, Eat Out to Help Out payments and other support payment made by local authorities. • As of 5 April 2022, all employees must once again meet the ‘qualifying journeys’ criteria for Cycle to Work schemes. The easement meant that employees who joined an employer-provided cycling scheme on or before 20 December 2020 would not need to fulfil the ‘qualifying journeys’ condition. • Home-office expenses easement ended on 5 April 2022. During the pandemic, the easement allowed employers to reimburse employees for equipment purchased without attracting income tax and NI liabilities. Where employers provide the equipment to an employee the income tax and NI exemptions remain in place. • Also ending on 5 April 2022, the easement on non-UK residents stuck in the UK because of travel restriction not being taxed on earnings for duties performed in the UK.

Tax updates

cipp.org.uk

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