CIPP Payroll: need to know - 2022-23

`The Chartered Institute of Payroll Professionals

News On Line

Eligible employers can now start to claim for the 2022/23 Employment Allowance (EA) of up to £5,000. Once granted the allowance can be used until the £5,000 is used or the tax year ends (whichever is sooner).

EA can be claimed through the EPS, but there are alternative methods if this is not a possibility. Claims can be made at any point during the year, however the sooner it is claimed the sooner employers can make use of the allowance. Dating back to 2018/19, employers can claim for the previous 4 tax years if eligible.

Employers are reminded to check eligibility and apply the de minimis rules correctly when applying for EA.

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HMRC issues communications to employers about National Insurance Published: 27 May 2022 Emailed: 1 June 2022

It has been announced that Her Majesty’s Revenue and Customs (HMRC) will be writing to all employers to remind them of the National Insurance primary threshold uplift from July. The intended date the communications were to be sent by was the end of May, so some employers may have received this already.

The email reads as below:

"Dear Customer,

Ensure you accurately reflect increased NIC thresholds in your July payroll.

On 23 March 2022 the UK government announced that from 6 July 2022 National Insurance thresholds would be increased. To accommodate this change, payroll software, including HMR C’s Basic PAYE Tools, will need to be updated. This may happen automatically, or you might need to take action.

It is important that payments due to be made on 6 July 2022 or later use the correct thresholds. Employers who run their payroll early should check that their software has been updated before processing and reporting these payments. We expect that all software will be updated by 6 July 2022 so any payments processed after that date should not need to be delayed. If you are unsure about whether or not your software has been updated, please contact your software provider.

If you use Basic PAYE tools, please note that this software will be updated to take account of national insurance threshold increases from 4 July 2022. So please wait until after 4 July 2022 to run payroll for any payments made on or after 6 July 2022."

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Updates to the CWG2 Published:10 June 2022 Emailed: 15 June 2022

The CWG2: further guide to PAYE and National Insurance contributions has been updated by Her Majesty’s Revenue and Customs (HMRC).

On 7 June 2022, several updates were cited.

One change focused on guidance regarding different employer pay as you earn (PAYE) references for separate groups of employees. Where different employer PAYE references are utilised for separate groups of employees, a formal election must be made. This needs to be done with the online form P350, and the online service used or the form completed, printed and posted to HMRC.

cipp.org.uk

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