CIPP Payroll: need to know - 2023-24

The Chartered Institute of Payroll Professionals

News On Line

HMRC What your tax code means – a new HMRC tool Published: 26 July 2023 Emailed: 2 August 2023

HMRC has released a new tool to assist with understanding what a tax code means and how it is made up. The tool asks for the following information:

which country you live in

• • • • • • •

is your tax code BR, D0, D1, 0T, NT or other

if other, does it start with a K? the numbers of the tax code

the suffix letter

if the code has W1,M1 or X at the end

estimated annual income.

From this, the tool provides an amount of tax expected to be deducted in differing pay period and an explanation of what the code means.

With tax code notices coming through a personal tax account by default for many new users, this tool will likely replace the usual explanations that came with paper notices. This tool could be useful to direct employees to if they require further assistance with understanding their tax code.

CIPP Comment:

The Policy team has raised concerns with the wording “How much tax you will pay” on the tool results page, as many additional factors could have an impact on these figures.

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2024/25 PAYE and NI guidance Published: 16 February 2024 Emailed: 21 February 2024

HM Revenue and Customs (HMRC) has released guidance to be used from 6 April 2024 in relation to PAYE and National Insurance contributions.

The guide covers: •

General procedures Special procedures

National Insurance only procedures

Special types of employee

Pay, expenses and benefits

It also has links to further guidance where it is needed.

It is a huge piece of guidance and includes many items of note for payroll professionals, so is a good one to have in your bookmarks to search when you have an initial query. From statutory payments, pension contributions, gender reassignment certificates, payroll giving to the basics of PAYE; it has it all.

Keep an eye out on this page for further updates, as such a big piece of documentation it is likely to be updated with amendments and additional information.

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