The Chartered Institute of Payroll Professionals
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As many students are starting paid work, sometimes for the first time, they may have not dealt with HMRC before and are unfamiliar with paying tax or dealing with the tax authority. This may make them vulnerable to fake ‘tax rebate’ offers and similar scams.
More guidance on how to identify tax scam phone calls, emails and text messages and how to report them, can be found, here.
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HMRC form: PSA1 Published: 12 October 2023 Emailed: 18 October 2023
HM Revenue and Customs (HMRC) has now updated the ‘ Tell HMRC the value of items in your PAYE Settlement Agreement ’ form.
The form PSA1 is used or a calculation is sent to tell HMRC about the value of items included in your PAYE Settlement Agreement (PSA). You can now tell HMRC the value of items in your PAYE Settlement Agreement by using the online form or by posting your calculation to HMRC. Use the online form or your own informal calculation to report benefits or expenses included in your PAYE Settlement Agreement if you’re an employer or agent. You must include all employees who have received the benefits or expenses, including any employees that earn below the personal tax allowance.
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Electric car reimbursement clarification from HMRC Published: 19 October 2023 Emailed: 25 October 2023
HM Revenue and Customs (HMRC) has amended guidance for EIM23900 and NIM06440 to reflect changes in the interpretation of the underlying legislation, section 239 of ITEPA 2003.
Following a review of its position, HMRC accepts that reimbursement for energy used to charge a company provided electric car or van falls within the exemption of section 239. This means reimbursement of domestic electricity bills in relation to charging a company vehicle (not owned by the employee) will not create a benefit in kind. This applies regardless of the vehicle use, whether private, business or mixed, as long as the car is not owned by the employee. Previous guidance from HMRC advised that such a reimbursement may be a taxable benefit.
This has been reflected in the flowchart provided in EIM23900. However the “ Check if you need to pay tax for charging an employee’s electric car” tool has yet to be updated.
Please note, employers will need to be able to ensure the reimbursement made relates solely to the charging of the vehicle.
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“A full review of all tax reliefs would impose significant uncertainty on the tax system”
Published: 19 October 2023 Emailed: 25 October 2023
Following on from the Treasury Committee’s report on tax reliefs, released on 26 July 2023, the government response to the report has been published.
The financial secretary to the Treasury, Victoria Atkins MP, writes:
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