Value A: Notional payment: Payment to Expat by third party or overseas employer Value B: Notional payment: Employment related security Value C: Notional payment: Other
Value D: Payment subject to Class 1 NICs but P11D/P9D for tax Value E: Micro Employer using temporary "on or before" relaxation Value F: No working sheet required; Impractical to report Value G: Reasonable excuse Value H: Correction to earlier submission.
The original list saw the reasons given in value F being split across both E & F, however for the Micro employer taking advantage of the relaxation, value E will be need to be selected when prompted within their software. At this stage and in all likelihood your software developer may well have already designed their solutions for 2014-15 and this change may well require further updates. Be aware of this notification but no action will be needed by you at this stage as your software provider will contact you as and when they have updates to notify you of. The aim of these options is to reduce the risk of incorrect notices or penalties being produced by HMRC and the CIPP continues to work alongside other stakeholders and with HMRC on the problems being experienced now. The CIPP continues to lobby for a delay in the penalty regime. You will be very much aware that as from April 2014 it will become mandatory to include the SCON (Scheme Contracted-Out Number), on the Full Payment Submission (FPS) where you have a Contracted Out Scheme and use the appropriate National Insurance letter; HMRC said absence of the SCON would result in the submission failing validation. The software industry along with the CIPP and other interested stakeholders have lobbied hard against this proposal as the industry felt that the pension providers could provide this information much more readily. HMRC have had discussions with the CIPP and other software providers as to how they can ensure FPS submissions get through where the employer has tried very hard to obtain the SCON but to no avail. We are pleased to report that payroll software developers have been informed of a ‘reserve plan’ (and we use this term advisedly) in the event that the employer is unable to track down the SCON reference. We would remind you that by now you should have made inroads to locate any missing SCON references where they exist. In the event you do still have records with missing SCONs you should make every effort to obtain them, which can be done by contacting your pension provider. Guidance has been issued to the software community to inform them that in the unlikely event that a SCON remains missing as at 6 April, they will be able to utilise a standard BUT temporary number in the correct SCON format to ensure validation is achieved and a return is not rejected as a direct result of a missing SCON. This is not an ideal solution but as the requirement to include a SCON reference where categories D, E, L, N or O have been used, it is a compromise from HMRC on behalf of the payroll industry, which is welcomed by the CIPP. Most if not all software will by now have been updated or will be in the process of being finalised for the approaching tax year and you will be anticipating news of your software release in accordance with your normal annual cycle of software updates. Be aware that Looking ahead to April 2014 – SCON update for Software Developers 9 January 2014
CIPP Policy News Journal
16/04/2014, Page 352 of 519
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