CIPP Payroll: need to know - 2022-23

`The Chartered Institute of Payroll Professionals

News On Line

There is a range of support available, including the use of time to pay arrangements, where customers can agree a payment plan with HMRC. This will allow individuals to pay what they can afford, without being put into unnecessary hardship.

Where individuals do not engage directly with HMRC, action may be taken within their debt enforcement powers. The briefing provides further detail on HMRC’s approach and next steps for recovery of debts owed to them.

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Tax avoidance scheme promoters ‘named and shamed’ by HMRC Published: 12 April 2022 Emailed: 13 April 2022

Two schemes have been named in the first time Her Majesty’s Revenue and Customs (HMRC) has used new powers to do so. Similar to government powers that allow the publishing of companies that fail to comply with national minimum wage law, these powers allow HMRC to publicly name tax avoidance promotors.

The schemes, Absolute Outsourcing and Equity Participation Scheme (EPS) appear on the new list with the aim to let taxpayers know so they may stay clear or exit the schemes. Mary Aiston, director of counter avoidance at HMRC, said:

“ These schemes are cynically marketed as clever ways to pay less tax. The truth is they rarely work in the way the promoters claim and it’s the users that end up with big tax bills. ”

The list will be kept updated with more schemes and promoters, however, the absence of a name on the list does not mean it is approved by HMRC. The press release also highlights the ‘Don’t Get Caught Out’ campaign, seeking to educate taxpayers on how to spot avoidance schemes and what to do if a customer believes they are involved with one.

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HMRC is urging employers and agents to check their payment references Published: 14 April 2022 Emailed: 20 April 2022

Her Majesty’s Revenue and Customs (HMRC) is urging employers and agents to ensure they are using the correct referencing when paying. In a letter to customers and agents they have provided details on how to do this correctly.

If the payment is for the current period, only the Accounts Office reference is needed. This is the 13-character reference that can be found: • On the HMRC letter sent when first registered as an employer • On the front of the payment booklet • On the letter HMRC sent when replacing a booklet • On the Business Tax Account.

If the payment is not for the current period, 4 additional characters are needed on the reference. The 17-character comprises of the accounts office reference (13) the tax year end (2) and the period (2).

Characters 14 and 15, for example, would be 22 for tax year 6 April 2021 to 5 April 2022, or 23 for tax year 6 April 2022 to 5 April 2023.

For monthly payment use the following 2 digits for each period: • 6 April to 5 May, use '01' • 6 May to 5 June, use '02' • 6 June to 5 July, use '03' • 6 July to 5 August, use '04' • And so on.

For quarterly payments: •

6 April to 5 July, use '03'

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