CIPP Payroll: need to know - 2022-23

`The Chartered Institute of Payroll Professionals

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The mandatory use of MTD for ITSA software will be phased from April 2026, with self-employed individuals and landlords with an income of over £50,000 joining first. They will need to keep digital records and provide quarterly updates on their income and spending to HMRC through compatible software. Those with income between £30,000 and £50,000 will need to comply from April 2027. A review has been announced into how MTD for ITSA can be adapted to meet the needs of those under the £30,000 threshold. This review will look at the needs of these smaller business and lay out the approach to the roll out after April 2027.

MTD for ITSA will also not be extended to general partnerships, as had previously been announced.

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HMRC: A1 certificates Published: 3 January 2023 Emailed: 4 January 2023

Employees who do not, or did not, work in the UK or the European Union Member States (EU MS) where they normally work because of the COVID-19 pandemic should provide details of their circumstances when applying for an A1 certificate. In these cases, HM Revenue and Customs (HMRC) can disregard changes to the work location caused solely by the COVID-19 pandemic when determining the applicable legislation.

Previously, HMRC advised cases would only be considered up until 31 December 2022. However, this has now been extended to 30 June 2023.

Operating an expatriate payroll and understanding the reporting obligations can be complex. Remember to check for the criteria that applies to you and your employees, including the validity of the A1 certificate. Further guidance can be obtained here.

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HMRC: changes to the Agent Dedicated Line Published: 5 January 2023 Emailed: 11 January 2023

HM Revenue and Customs (HMRC) has advised from 1 January 2023 to 31 January 2023, the Agent Dedicated Line (ADL) will only be able to answer self-assessment queries, as a temporary measure.

The online deadline for filing your self-assessment tax return and paying the amount due is 31 January 2023. With the deadline being around the corner, this will mean HMRC receives a high volume of calls. As a result of this, HMRC has limited the calls to be answered in an attempt to manage service levels.

HMRC is warning customers that the deadline to submit a paper return has passed and tax returns can only be submitted online. Anyone who files after 31 January may face a penalty.

HMRC has said:

‘‘ There is less than one month for around 5.7 million self-assessment customers to file their tax return or they may face a penalty. ’’

“Do not contact the helpline to check progress or ask about tax and employment history.”

If you act as an agent and have non-self-assessment queries, HMRC suggests the below methods instead of contacting the ADL:

use the agent dashboard

• •

sign up to the income record viewer service

• customers could use their personal tax account.

You can check when you can expect a reply or use the income record viewer to see your client’s:

cipp.org.uk

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