Policy News Journal - 2013-14

If you or your employees happen to be unfortunate enough to be impacted by this and receive a tax code which has increased as a result of the benefits having been removed, you should contact HMRC's Taxes Helpline on 0845 300 0627 to get the benefits added back in.

LATEST HMRC MONTHLY UPDATE FOR EMPLOYERS ON THE RTI PILOT

31 May

HMRC has published the latest monthly update for employers who took part in the RTI pilot during 2012-13.

It includes details of how to submit an Earlier Year Update for 2012-13 using the latest version of Basic Paye Tools as well as a reminder that forms P11D(b) will not be sent out to RTI pilot employers until 2 July.

As these forms need to be returned to HMRC by 19 July, you may prefer to download a form from HMRC’s website rather than relying on the one coming through the post.

HMRC SEEKING TO EXTEND THE TEMPORARY RELAXATION

12 June 2013

HMRC has today announced that they are seeking to extend the temporary relaxation of the new reporting rules for businesses with fewer than 50 employees from October 2013 until April 2014. HM Revenue & Customs has confirmed however that this relaxation will come to an end at this point. The extension means that businesses will not be required to change their approach halfway through the tax year. The relaxation has meant that these businesses are still required to report through the new system, but are able to do so once a month, rather than each time they pay their employees. This gives small businesses that pay weekly (or more frequently), but who only run their payroll at the end of the month, some extra time to adjust to the new requirements. From April 2014, all employers need to plan to be reporting in real time, but HMRC is continuing to work with businesses over the coming months to identify whether there are any specific circumstances with on-or-before reporting that it needs to cater for in the longer term. PAYE information reported in real time is already being used by the Department for Work and Pensions (DWP) to calculate Universal Credit amounts paid to people in its pathfinder pilot in the north west of England, ensuring the amount of benefit accurately reflects their level of income. “ This is the biggest reform of PAYE since its introduction nearly 70 years ago and we are bringing the system into the 21st century. The transition is going well, and the vast majority of employers are now reporting their PAYE information in real time, meaning that HMRC’s records are becoming more accurate and up-to-date. DWP is already using the new system to underpin its Universal Credit pilot, helping it to be more responsive to changes in claimants’ income levels. This is all good news, but we will continue to listen to and work with businesses to ensure that all employers are reporting in real time by April 2014.” Exchequer Secretary to the Treasury David Gauke said:

HMRC’s Director General for Personal Tax, Ruth Owen, said:

CIPP Policy News Journal

16/04/2014, Page 332 of 519

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