The Chartered Institute of Payroll Professionals
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6. Progressing financially
The report explores the ways in which EWA can be a more beneficial route to emergency access to money over traditional alternatives such as credit cards, overdrafts and bank loans. However, it is key that a route to adequate savings should be encouraged as this will always come without a fee, without interest and can be replenished on an individual’s own schedule.
Key takeaways on best practice from the report are: 1.
understanding employees’ needs before designing and implementing solutions 2. offering comprehensive financial wellbeing benefits that employees can use to support short-, mediumand long-term financial goals and challenges 3. choosing an EWA provider that is signed up to the forthcoming code of conduct and ensuring there are relevant controls in place for vulnerable customers 4. focusing loans on supporting workers to gain stability and increase their long-term earning potential 5. providing pathways from debt and EWA into saving 6. taking an integrated approach across the organisation, including better integration of mental health and financial wellbeing supports. The report is a big one, but if you are planning in implementing any of the researched benefits for your employees it could be beneficial to see what employees and employers have to say about them. As these packages become more commonplace and desirable, more companies will feel required to implement them to keep up with labour market expectations. Make sure you do your research and introduce them responsibly for them to have the best, most beneficial impact possible.
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Payrolling benefits mid-way through the year Published: 2 August 2023 Emailed: 9 August 2023
If you choose to payroll benefits and expenses, then you must add the cash equivalent of the employees’ benefits to their pay and then tax them through the payroll. In addition to this, HM Revenue and Customs (HMRC) no longer accept new informal payrolling benefits arrangements from 6 April 2023.
If you’re intending to payroll benefits and expenses, you must register them with HMRC using the payrolling employees taxable benefits and expenses service.
However, what if you want to payroll benefits mid-way through the year? If an employer wishes to start payrolling benefits mid-way through this year, they are unable to do so. The employer must register online to tell HMRC they are going to payroll a benefit from April 2024. Once an employer has registered in good time before 6 April 2024, HMRC will automatically update the employees tax codes, to remove the value of the benefit from the tax codes. However, the employer would need to send P11D’s as normal f or the 2023/24 tax year.
Further information on payrolling benefits can be found, here.
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P11D portal issues Published: 2 August 2023 Emailed: 9 August 2023
HM Revenue and Customs (HMRC) has provided an update on a query from the policy team, regarding P11D portal issues some users experienced on 6 July 2023.
HMRC has confirmed on 6 July 2023, no issues were made aware of with the online service. However, the Penalty Warning Letter (PWL) scan to identify late submissions took place on the 20 July 2023. If HMRC had been made aware of any issues before this date, steps to prevent PWL’s from being issued would have been taken. The PWL will advise customers of an outstanding return and that they may be in a penalty position.
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