New one-off £500 payment to support working households in receipt of tax credits
Employees who are in receipt of Tax Credits may be eligible for a one-off payment of £500, which is being offered to help households through the outbreak of coronavirus.
This payment is being made available in recognition of the fact that the temporary increase in Working Tax Credit of £1,045 per year, introduced at the beginning of the pandemic, ended as intended on 5 April 2021.
Employers are persuaded to inform their employees of this payment, as it is hoped that this will help to protect them from scams and prepare them for the changes to their regular Tax Credits payments.
The payment will be made automatically by no later than 23 April 2021, and claimants will be contacted by text message or letter to confirm that they will receive the payment. Employees are not required to contact HMRC or apply for the payment. Employees could potentially be eligible if, on 2 March 2021, they were receiving either Working Tax Credit, or Child Tax Credit and if they were eligible for Working Tax Credit but their income was too high to get Working Tax Credit payments. The one-off payment will not impact any other benefits, for example, Housing Benefit or Universal Credit, and individuals are not required to pay Income Tax or National Insurance (NI) on the amount of the payment. Nor do they have to declare it as income for Self-Assessment tax returns should they need to complete them.
Changes to amending PAYE Pay Settlement Agreements for coronavirus items
If employers have extra items to add to a PAYE Pay Settlement Agreement (PSA) then HMRC issue a new P626. For the tax year 2020-21, where additional items relate solely to coronavirus a new P626 is not required. HMRC will add an appendix to the existing enduring agreement.
To add any coronavirus-related items, for example, taxi fares or car parking for staff who needed to work in the office, or computer equipment to enable staff to work from home to an existing PSA, email lbs.compliance@hmrc.gov.uk.
Back to Contents
Making Tax Digital
National Insurance
CA38: National Insurance contributions tables A, H, J, M and Z 7 April 2021
The helpbook CA38 for use from 6 April 2021 to 5 April 2022 has been published.
The tables in the CA38 should be used calculate National Insurance (NI) contributions for employees that are payable under contribution table letters A, H, J, M and Z.
The tables in the CA38 are for employers who are exempt from filing or unable to file payroll information online and use manual systems.
CA38: National Insurance contributions tables A, H, J, M and Z
Back to Contents
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
Page 35 of 60
Made with FlippingBook - Online magazine maker