`The Chartered Institute of Payroll Professionals
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Her Majesty’s Revenue and Customs (HMRC) has compiled a guidance page with links to where financial help can be sought from them.
The guidance points towards help with: • Childcare •
Tax relief on work-related expenses
Marriage allowance
• • •
Savings
If cannot pay your tax bill.
This can be a valuable resource for employers to direct individuals to if needed.
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HMRC reminder to use the off-payroll working toggle Published: 27 April 2022 Emailed: 4 May 2022
Her Majesty’s Revenue and Customs (HMRC) is reminding those operating payroll software to make sure they are using the ‘off - payroll’ indicator properly.
Payroll software should include an indicator to enable organisations operating payroll to notify HMRC of any engagements being paid which are subject to the off-payroll working rules (IR35). This is likely to be named the ‘off - payroll worker subject to the rules’ indicator. It is mandatory to use this indicator for engagements determined to be inside the off-payroll working rules. It is only to be used by the deemed employer, who is the party in the chain with responsibility for deducting Income Tax and National Insurance contributions on payments being made to a contractors own limited company (often known as a personal service company of PSC), or other intermediary, as part of the off-payroll working rules (IR35). The deemed employer could be a medium or large sized non-public sector client organisation, a public sector client organisation of any size, or an agency. The indicator is not to be used for any payments made which are not subject to the off-payroll working rules (IR35), for example payments made to contractors working as sole traders. It is also not to be used by a contractors own limited company.
If you have used this indicator incorrectly or have not used it when you should have done, HMRC is encouraging organisations to make sure this is corrected urgently on a corrective Full Payment Submission for the relevant period.
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Interest on late payments to HMRC set to rise next week Published: 11 May 2022 Emailed: 11 May 2022
On 5 May 2022 the Bank of England Monetary Policy Committee voted to increase the Bank of England base rate from 0.75% to 1% due to the recent rise in inflation. This will impact HMRC interest rates which are fixed at base rate plus 2.5%. Interest on late payments will change to 3.5% on 16 May for quarterly instalment payments and on 24 May for all other payments.
The interest on these payments serves as an encouragement for organisations to ensure their account is up to date with regards to HMRC liability.
The repayment interest rate on overpayments will not change and will remain at 0.5%. This will be the case until base rate rises above 1.5%. After this the rate will be base rate minus 1%.
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