This edition includes an update on a range of topics aimed at providing employers and their advisors with timely information that is current and also highlights subject on the horizon.
Home working expenses continues to be a topical subject and the Bulletin spotlights the link to the online claim tool. The tool will enable the employee to claim the £6 per week tax relief in the event their employer has chosen not to reimburse them for additional costs incurred due to having to work from home.
Further tax reliefs that are available due to incurring work related expenses can also be claimed using the online tool.
Off-payroll working reforms will continue from April 2021 and HMRC have taken the opportunity in this edition to provide details of their package of support measures that were launched from the start of October and that are due to run throughout until April 2021.
If you engage the personal services of contractors who work through an intermediary and are a non-public sector medium or large engager these reforms will impact you. Start to prepare now
For full details of all topics covered please download the Employer Bulletin from gov.uk.
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Employer Bulletin – December 2020 11 December 2020
HMRC has published the December edition of the Employer Bulletin.
This edition includes an update on a range of topics aimed at providing employers and agents with the latest information on subjects and issues that may impact them.
There is discussion of a variety of measures that continue to be implemented in order to help to support employers and individuals through the outbreak of coronavirus, and updates relating to Brexit.
There is the timely addition of guidance on reporting PAYE in real time where payments are made to staff early in December. News about occupational pensions and off-payroll working rules in relation to Student and / or Postgraduate Loans is also included.
Employers operating a childcare vouchers scheme
As a result of restrictions imposed due to coronavirus, the way employees are working has changed and they may subsequently not need their standard childcare services. Those who are using the childcare voucher scheme may continue to receive the vouchers but could request to temporarily lower the amount that they receive, so that they don’t accumulate a large number of unused vouchers over time. Employers may, therefore, wish to remind employees that they can reduce their contribution by way of agreement with the employer. The value of the childcare vouchers can be increased again later, when required, and changing the amount has no effect on eligibility for the scheme. If employees receive childcare vouchers via salary sacrifice, it is advisable to ensure that they would not be better off financially on Tax-Free Childcare (TFC), which helps eligible working parents with the costs of childcare. For every £8 placed into a childcare account, the government supplies an additional £2, up to a maximum of £2,000 per child under 12, per year. This increases to £4,000 for children who are aged under 17 and are disabled. Some families currently in receipt of childcare vouchers would benefit more financially from TFC. Some illustrative examples of this are provided:
Example 1: Family with children aged 2 and 6 years old
David and Sarah have two children, Oliver aged 6 and Amelia aged 2. Sarah is employed and receives tax exempt childcare vouchers through her work via salary sacrifice. David is self-employed and so cannot receive tax exempt childcare vouchers. Oliver goes to an afterschool club for 38 weeks a year and a holiday club for six weeks of the year. His annual childcare costs are £3,345.28. Amelia is at a nursery for 48 weeks a year with an annual cost of £12,262.56. This makes an annual total for David and Sarah of £15,607.84. As a higher rate taxpayer, Sarah receives
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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