`The Chartered Institute of Payroll Professionals
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The first late payment penalty will not be charged for the first year, from 1 January 2023 until 31 December 2023, if payment is made in full within 30 days of the payment due date. This will be known as the ‘period of familiarisation’.
From 1 January 2023, late payment interest will be charged from the day payment is overdue to the day payment is made in full. Late payment interest is calculated at the Bank of England base rate plus 2.5%.
HMRC has also advised that the repayment supplement will be withdrawn from 1 January 2023. For accounting periods commencing on or after 1 January 2023, HMRC will pay repayment interest on any VAT that’s owed. The minimum rate of repayment interest will sit at 0.5%.
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Employment income manual update: grossing-up to pay employees tax-free payments Published: 26 May 2022 Emailed: 1 June 2022 Her Majesty's Revenue and Customs (HMRC) has updated its guidance to simplify the concept of tax-free remuneration, also known as gross-up payments. This refers to when an employer wants to make a payment of a fixed amount to an employee and cover the tax and National Insurance liabilities incurred from it. The method is simple, increase the gross pay until the net pay becomes the amount you want to pay the employee. The HMRC guidance gives an example to illustrate, in which if you want to pay the employee £500, but on the payroll 20% is being lost to tax deductions, you would have to input £625 gross on the payslip to reach your target of £500. The calculation to reach the gross amount can be complicated as there may be multiple deductions that need to be made on the payment. Options for how to calculate are varied. Some payroll professionals have payroll software which has the functionality to do the gross-up calculation, some calculate manually, whilst others use Microsoft Excel and functions like goal-seek.
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Reporting issues or errors with guidance pages Published: 8 June 2022 Emailed: 8 June 2022
Payroll professionals accessing guidance on the GOV.UK pages may not be aware there’s the option of providing direct feedback on the content, should they wish to.
At the very bottom of the webpages, the following box appears:
Users can select that ‘Yes’, to confirm the page is useful, which simply sends that feedback on. If the user selects ‘No’, they’re asked to provide their email address, so that a feedback form can be sent to them.
If the user selects ‘Report a problem with this page’, then there are two text boxes that appear to ask the questions, ‘What were you doing?’ and ‘What went wrong?’
Her Majesty’s Revenue and Customs (HMRC) is encouraging people that use the GOV.UK website to use these tools so that the pages can be improved accordingly.
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UK government releases IR35 lessons learned report
cipp.org.uk
Page 66 of 238
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