The Chartered Institute of Payroll Professionals
News On Line
Classification of company cars and vans for benefit in kind purposes These is particularly important for employers/agents that need to report company vehicles on a P11D prior to the filing date of 6 July 2023. • guidance to help employers and agents determine classification is now available Employer PAYE direct debits and time to pay arrangements • setting up a new direct debit for employer PAYE needs to be done early to make sure the payment is made on the 22nd of every month • agents are unable to set up a direct debit on behalf of the employer • the direct debit is always collected shortly after the 22nd of every month, this means that HMRC may send a notification stating that the payment is late, even if the payment is made on time. This is not a penalty, but an advisory notice and HMRC are looking to stop this from happening • a time to pay arrangement can be set up online by employers, who are struggling to pay and have PAYE arrears Tax and National Insurance contributions (NIC) for termination payments • HMRC highlights the rules around treatment of termination payments, as a number of changes have occurred over the years • useful links:
Income Tax (Earnings and Pensions) Act (ITEPA) 2003 changes to the rules on post-employment notice pay
changes to the income tax and NICs treatment of termination payments EIM12810 — Termination payments and benefits: applying the legislation EIM12800 — Termination payments and benefits Employment Income Manual what you pay tax and national insurance on corrections can be made through a full payment submission
Student and postgraduate loans •
check the HMRC o nline service for generic notification service messages, as this impacts employee’s student and postgraduate loan repayments • the 2023/24 thresholds and rates for student and postgraduate loans are available here
Employer PAYE charge queries •
the creation of duplicate employments for employees, where an extra employment record is created which is identical to an existing live or ceased employment is still causing an issue • check HMRC’s recommendations to avoid duplicate employments
Reporting expenses and benefits for the tax year ending 5 April 2023 •
HMRC has changed legislation to mandate the submission of P11D and P11D(b) returns online • paper P11D and P11D(b) forms will no longer be accepted • employers and agents who need to submit up to 500 P11D and P11D(b) returns can use the free HMRC PAYE online services • for the 2022/23 reporting year, the submission deadline is 6 July 2023 • from 6 April 2023 HMRC will no longer accept paper P11D or P11D(b) amendment forms, including lists. Read the published guidance on submitting amended forms electronically from 6 April 2023 employers can register to payroll benefits for 2024/25 reporting year • employers may still have a Class 1A NICs liability and will still need to submit a P11D(b) to tell HMRC how much employer Class 1A NICs are owed. Employers will also need to submit a P11D to show any benefits paid that were not payrolled • HMRC no longer accept informal payrolling arrangements, the deadline to register to payroll for the 2023/24 reporting year was 5 April 2023 • If this deadline has been missed then employers must revert to online filing for P11Ds for the 2023/24 reporting year
Payrolling expenses and benefits in kind •
Paying Class 1A NICs •
electronic payments must clear into the HMRC account by 22 July 2023
PAYE electronic payment deadline falls on a weekend •
this month the electronic payment deadline of the 22nd falls on a saturday. Funds should be cleared in HMRC’s account by 21 April 202 (unless paying by faster payments)
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