CIPP Payroll: need to know - 2022-23

`The Chartered Institute of Payroll Professionals

News On Line

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The tables outline how to work out the percentage benefit for both petrol-powered cars and hybrid-powered cars. The figures for the 2022/23 tax year will be frozen until 2024/25.

There is more detailed guidance for more information on how to work out the benefit of a company car. There are special rates for cars with different fuel types, or cars without an approved CO2 emissions figure. Where 2 cars are provided consecutively, the benefit chargeable for each car will depend on the length of time each car was unavailable to the employee.

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Digital PSA1 form introduced Published: 21 July 2022 Emailed: 27 July 2022

Included in Agent Update 98 , Her Majesty’s Revenue and Customs (HMRC) have revealed that a new PAYE Settlement Agreement (PSA) form has been created. The PSA1 form, created based on customer feedback, creates a more efficient submission route.

HMRC state this form is now their preferred method of receiving the PSA1 from employers. The claimed benefits for employers of it use include:

Easy, standardised reporting

• • • •

Improved accuracy

Speedier processing times Fewer resulting queries.

Additionally, if the paper version is used, employers may need to complete multiple PSA1 forms depending on where the employees live. The new digital form enables employers to submit one for all employees.

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Electric car advisory fuel rate change Published: 18 November 2022 Emailed: 23 November 2022

Guidance from HM Revenue and Customs (HMRC) here and here has been updated to reflect the fact that the advisory fuel rate (AFR) for fully electric cars will increase from 5 pence to 8 pence per mile, from 1 December 2022.

In alignment with other AFRs, the electric rate will be reviewed on a quarterly basis going forward.

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HMRC update: reporting expenses and benefits Published: 16 February 2023

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