CIPP Payroll: need to know - 2023-24

The Chartered Institute of Payroll Professionals

News On Line

• guidance on research and development tax relief changes - this includes information on the new claim notification and additional information requirements and associated forms • homeworking deduction for expenses and benefits - updated guidance is available to make the eligibility criteria clearer. This should help employers and their employees understand what can be claimed. Eligible customers can use the online service to claim for the number of weeks they qualify for during 2023/24 • state pension arrears - the Department for Work and Pensions (DWP) began to make payments to individuals who had been underpaid, work will continue until December 2024 Off-payroll working rules (IR35) — engaging contractors • check the off-payroll working topic page and the ESM10006 — off-payroll working legislation for the rules applicable • rules have not changed for contractors working through their own limited company, often known as a personal service company, or other intermediary, who provide services to small client organisations in the private and voluntary sectors. More information can be found in guidance for off-payroll working for intermediaries and contractors • clients who engage contractors need to keep detailed records. Information can be found in the off-payroll guidance for clients 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 online 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 Update on UK implementation of global tax reform • the government introduced legislation in the Finance Bill 2022 to 2023 on 23 March 2023, to implement the globally agreed G20-OECD Pillar 2 framework in the UK • changes will apply to large groups with over 750 million euros global revenues and will take effect in relation to accounting periods beginning on or after 31 December 2023 • HMRC is continuing to engage with key stakeholders such as representative and trade bodies. More details of this will be shared in coming months

Annual Tell ABAB survey gives small businesses a big voice in the tax system •

t he annual ‘Tell ABAB’ survey is now available to complete. Read more on this topic here

Making Tax Digital (MTD) • agent services account — access groups trial - i f you’re already taking part in the trial and using access groups, you can view your client l ist by navigating to the ‘manage account’ page • i f you’re interested in joining the trial or would like to find out more, you can contact HMRC on mtdgpvolunteers@hmrc.gov.uk • from 15 May 2023, if your clients do not file their VAT returns through compatible software, they may have to pay a penalty Update on Agent Dedicated Line • between 17 April and 2 June 2023, the Agent Dedicated Line will only answer calls relating to self- assessment late filling penalties and appeals and PAYE coding enquiries

Other areas also covered in the issue are: •

the second-hand motor vehicle payment scheme • plastic packaging tax monthly update — Spring Budget and Finance Bill 2023 • mandatory disclosure rules came into force on 28 March 2023 • HMRC agent services • economic crime levy for anti-money laundering regulated businesses • preparing for the new tax year basis — income tax self-assessment

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