CIPP Payroll: need to know - 2022-23

`The Chartered Institute of Payroll Professionals

News On Line

Published: 26 July 2022 Emailed: 27 July 2022

Her Majesty’s Revenue and Customs (HMRC) has released their newsletter rounding up the latest pension scheme news.

Following Legislation Day 2022, now referred to as L-Day, draft legislation on the following pension related issues has been published:

Collective money purchase – winding up

• Provision in connection with the Dormant Assets Scheme • Low-earners – net pay arrangement tax relief top-ups

Also covered in the newsletter are:

• relief at source ― annual return of information for the tax year 2021 to 2022 • Managing Pension Schemes service • Accounting for Tax (AFT) returns • pension flexibility statistics • Qualifying Recognised Overseas Pension Schemes (QROPS) transfer statistics

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Employer Bulletin: August 2022 Published: 10 August 2022 Emailed: 10 August 2022

The Bulletin contains a wealth of information of interest to payroll professionals and the work that they carry out, and the CIPP recommends that it is read in its entirety.

Key items from the bulletin are highlighted below, but the full version can be accessed here.

PAYE •

PAYE Settlement Agreements o

HMRC has recently completed a review of customer feedback from employers who make use of PAYE Settlement Agreements. Acting on that feedback we have redesigned the PSA1 form in line with your needs. We have also introduced a more efficient digital submission route. The new form is available from PAYE Settlement Agreement (PSA1). You must pay any tax and National Insurance owed under a PAYE Settlement Agreement by 22 October after the tax year to which the PAYE Settlement Agreement applies (19 October if you pay by post). ‘ Pay a PAYE Settlement Agreement’ gives more information on how to pay. Payment deadline and calculation reminder o

Employers PAYE o

From 19 September 2022, in response to customer feedback, employers’ PAYE customers will be able to take advantage of a new variable Direct Debit payment plan. The service can be accessed through Pay employers’ PAYE or directly through the business tax account and the employers PAYE service. • First Full Payment Submission for new starters: the importance of using the correct employee addresses o When completing the first Full Payment Submission for new starters it is important that you obtain and enter your empl oyee’s correct address and postcode and use the employee’s P45 information to record their previous pay, tax and student loan (if applicable). If the employee does not have a P45 you can use the following starter checklist for PAYE. If you use the starter checklist to add the employee onto your payroll records and you receive the P45 after you have received a tax code from HMRC, you do not need to update the previous pay, tax, or tax code on your payroll software, only update student loan details (if applicable). Using the correct postcode and address is important because HMRC uses the postcode to verify the employee’s address.

Coronavirus (COVID-19) updates and information •

VAT deferred due to COVID-19 — act now to avoid a penalty

Tax updates and changes to guidance

cipp.org.uk

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