CIPP Payroll: need to know - 2022-23

`The Chartered Institute of Payroll Professionals

News On Line

Published: 31 October 2022 Emailed: 2 November 2022

HMRC is undertaking a piece of work to understand more about the impact that HMRC authentication processes have on agents and their staff when transacting with HMRC. HMRC is seeking volunteers who are willing to talk to discuss the pain points they experience today along with the impact that multi-factor authentication (MFA) would have on their business, should HMRC roll it out to agent services. The research is looking for suggestions on how HMRC could adapt its MFA service to accommodate agents’ operating models. For example, agents might want to receive the challenge code in a different way and there may be alternative methods of authentication that could be explored. Is there best practice for circumstances when agents authenticate themselves as a third party to transact for their clients, such as to access clients’ banking, land registry or benefits? Do you have experience of having your HMRC credentials compromised? We cannot guarantee that HMRC will be able to speak to every volunteer, but it is keen to engage with as many agents as possible to gather their requirements of a future service and understand the impact authentication has on their businesses. HMRC is particularly interested in talking to micro, small and medium sized agents. If you are interested, please contact customerengagementforums@hmrc.gov.uk with your name and contact details, along with details of the number of staff and clients, taxes covered and if your staff share User IDs or have individual User IDs to access online services.

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Interactive tax code assistance tool released Published: 14 November 2022 Emailed: 16 November 2022

Individuals receive change of tax code notices for many reasons. These reasons may not always be known by the employer, making advice and guidance difficult to offer. These reasons can be:

• the individual starts to get income from additional job or pension • the individual’s employer tells us they have started or stopped getting benefits from their job • the individual gets taxable state benefits • the individual claims marriage allowance • the individual claims expenses they get tax relief on.

To assist individuals in accessing the correct information, based on their needs and situation, HM Revenue and Customs (HMRC) has released an interactive tool . The ‘get help understanding your tax code tool’ will help the user understand the reasons for the change and what next steps can be taken.

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HMRC amends secondary legislation on salary advances and RTI reporting requirements

Published: 18 November 2022 Emailed: 23 November 2022

Within the November 2022 Agent Update , HM Revenue and Customs (HMRC) has addressed how salary advance payments are to be treated going forward.

Some employers pay employees salary advances, to allow them to access a portion of the salary they’ve earned prior to their standard pay date. There are also circumstances where employers arrange to make these payments through a third party, who will often charge an associated fee for the service. This may be happening more frequently at present, given the current cost-of-living crisis.

Current legislation stipulates that these advance payments must be treated as a payment on account of earnings, which subsequently means employers must submit extra real time information (RTI) reports to record them. However,

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