Professional February 2022 (sample)

Payroll news

Payroll news

Self-assessment late payment penalties temporarily waived HMRC CONFIRMED in January 2022 that it would grant self-assessment workers additional time to file and make payments for their tax returns for 2020/21 without incurring any penalties. This is in recognition of the ongoing impact of the pandemic. Anyone who cannot file their return by the 31 January 2022 deadline will not receive a late filing penalty if they file online by 28 February 2022. However, interest will still be payable from 1 February 2022, so it is advisable to pay as soon as possible to avoid this. Those who cannot pay the self-assessment tax by 31 January 2022 will not receive a late payment penalty if they pay their tax in full, or set up a time to pay arrangement, by 1 April 2022. HMRC makes decision to pause most webchat services for three months BACK IN December 2021, HMRC announced that, from 4 January 2022, it would be pausing the majority of its webchat features for three months in order to review the service it is providing. HMRC has discovered the webchat is most effective for dealing with simple queries and to direct people to the digital tools available on GOV.UK: http://ow.ly/ UYQk30s73po. For more complex queries, the webchat takes 84% longer to deal with than a phone call. During this time, webchat will still be available for the following: ● online services helpdesk ● self-assessment ● national clearance hub

Scottish andWelsh income tax rates confirmed AS DEVOLVED nations, Scotland and Wales can set their own rates of income tax. Her Majesty’s Revenue and Customs (HMRC) recently confirmed the new rates for operation in tax year 2022/23. Please note that the rates below are subject to parliamentary approval:

Income tax tates – Scotland

Starter rate

19%

1 – 2,162

Basic rate

20%

2,163 – 13,118

Intermediate rate

21%

13,119 – 31,092

Higher rate

41%

31,093 – 150,000

Top rate

46%

Over 150,000

Income tax rates – Wales

Basic rate

20%

1 – 37,700

Higher rate

40%

37,701 – 150,000

Additional rate

45%

Over 150,000

The coronavirus statutory sick pay (SSP) rebate scheme returns CHANCELLOR OF the exchequer, Rishi Sunak, confirmed that, due to the impact of omicron, the coronavirus SSP rebate scheme would re-open from 21 December 2021. At the time of writing, no closure date has been provided, but the claims portal was expected to open from mid-January, also allowing retrospective claims to be made. The scheme is open to UK-based employers with a pay as you earn payroll and less than 250 employees as of 30 November 2021. They can claim for up to two weeks of SSP per employee who took time off work for coronavirus-related reasons. The two-week limit has been reset, so an employer will be able to reclaim up to two weeks per employee regardless of whether they have claimed for them before. A factsheet which provides further details is available here: http://ow.ly/ek7b30s73uM. A possible extension to auto-enrolment? CONSERVATIVE MEMBER of parliament (MP), Richard Holden, tabled a motion in the House of Commons to expand the reach of auto- enrolment. Currently, auto-enrolment only applies to individuals who receive more than £10,000 per year and are aged 22 and over. If the changes go ahead, auto-enrolment would instead apply to those aged 18 and above and in receipt of lower earnings.

● imports and exports ● debt management ● extra support ● support for pandemic-related activity.

Diary dates

5 February

Last day of tax month 10

6 February

First day of tax month 11

19 February (this is a weekend date)

Last day for submitting a real time information employer payment summary to apply to tax month 10 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method

22 February

Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method

5 March

Last day of tax month 11

6 March

First day of tax month 12

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| Professional in Payroll, Pensions and Reward |

Issue 77 | February 2022

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