Where there is a payment after leaving, once a P45 has been issued, tax code 0T must be operated on a non- cumulative basis. It would be S0T for employees who had an S prefix in their code, or C0T for employees who had a C prefix in their code.
Employees without a new tax code
For any employees without a new tax code, the authorised tax code from 2020-21 should be used, and in scenarios where there is a ‘week1’ or ‘month 1’ marking, this should not be carried forward.
7 should be added to any tax code ending in L, e.g., 1250L will become 1257L. 8 should be added to any tax code ending in M, and 6 added to any tax code ending in N.
Employees with a new tax code
Retain and use the form P9(T) or other tax code notification with the most recent date on for each employee:
• Scrap any form P9(T) or other tax code notification for the same employee with an earlier date • Copy the tax code from the form P9(T) or other tax code notification onto payroll record • Update any tax codes where form P9(T), or other tax code notification, is received after payroll records have been set up
Back to Contents
Volunteers required for testing the IT system for the VAT Deferral New Payment Scheme 11 February 2021 HMRC is currently looking for volunteers who can test the IT system for the VAT Deferral New Payment Scheme. The scheme enables businesses that opted to defer their VAT between 20 March 2020 and 30 June 2020 to repay it in smaller instalments, interest free, over the course of 2021 to 2022. Businesses may choose to repay the deferred VAT in anything between two and 11 payments. The scheme will be accessed via a simple digital service, which HMRC needs to test ahead of its full launch. This is a crucial piece of work, which will ensure that the service is robust and easily accessible, prior to the launch of the scheme to businesses up and down the country. It does not need specialist software and it is a self-guided journey (rather than one that is completed by an agent). HMRC requires a broad cross-section of customers who meet their desired tester profile, meaning that volunteers will be required to take part in a short telephone or online interview. Any businesses interested in participating in the Beta testing should email vatinfrastructurecovid19policy@hmrc.gov.uk as soon as possible, but before close of business on 12 February 2021. They should include their contact details and include “Volunteer Beta Tester – New Payment Scheme” in the subject line.
There is guidance available on paying VAT deferred due coronavirus online.
Back to Contents
Update on P9 Notice of Coding notifications 12 February 2021
Within the February Employer Bulletin, there is information relating to P9 Notice of Coding email notifications.
The notifications will be circulated from the week commencing 8 February 2021 up until 7 March 2021. The notifications advise that the coding for tax year commencing 6 April 2021 can be viewed online. To ensure that these emails are received, a business will need to make sure that their email address is up to date.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
Page 422 of 590
Made with FlippingBook - Online magazine maker