Workplace pensions and COVID-19
The Bulletin also reminds employers of the ongoing requirement to meet their Automatic Enrolment (AE) duties, despite the unprecedented and challenging times we are living in. Employers who claim for a grant under the CJRS will be able to claim pension contributions, up to the level of the statutory minimum AE employer contribution on the wages they are claiming. The scheme does not require employers to amend their pension arrangements and current scheme rules and contribution requirements will still apply. If employers are worried that they may not be able to make their pension contributions, regardless of whether they have furloughed employees or not, they should discuss this with their provider. Employers may be able to change the due date for payment of employer contributions to a later date or be able to pay contributions over a longer period. There are also government support packages available to help employers if they are having issues with their cashflow.
Official Rate of Interest 2020-21
The Official Rate of Interest used to calculate the income tax charge due on the benefit of employment related loans and the taxable benefit of some employer-provided living accommodation is confirmed as being 2.25% for tax year 2020-21. If an employer provides employment related loans or living accommodation to employees, they will need to note the reduction in the interest rate.
Reporting Expenses and Benefits in Kind for tax year ending 5 April 2020
There is also a reminder about the deadline for reporting any Expenses and Benefits in Kind as it is rapidly approaching, on 6 July 2020. Employers need to report this information for each employee that they have provided with expenses and benefits. Employers can report using either commercial payroll software, HMRC’s PAYE Online service, or HMRC’s Online End of Year Expenses and Benefits service. If they cannot use any of these, then they can use the official forms P11D and P11D(b).
If the information is sent late then employees could end up paying the wrong tax, so employers should ensure that they adhere to the deadline.
It is advisable for all payroll professionals to familiarise themselves with the content of the Bulletin in full.
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Employer Bulletin - June 2020 18 June 2020
The latest edition of the Employer Bulletin has been released by HMRC and can be located here.
This particular edition provides advice for businesses on how best to support their employees through the period of uncertainty that has been caused by the outbreak of coronavirus. There are articles on the changes to maternity and paternity pay in relation to calculating the Average Weekly Earnings (AWE) for furloughed employees, information surrounding late filing and payment penalties, and also guidance on how certain expenses and benefits provided to employees should be treated. There is information relating to more ‘business as usual’ items for payroll professionals including updates on the Employment Allowance, updates to the withdrawal of P45 and P60 stationery, and the Bulletin also includes the recommendation to report expenses and benefits information through HMRC’s online service. Just a few snippets from the Bulletin are included below, but payroll professionals should read the whole document to ensure that they are as up to date as possible with updates that will inevitably have an impact on the work that they are carrying out.
Coronavirus (COVID-19) – late filing and payment penalties
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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