Payroll: need to know (Latest version)

2021-2022 As of 8 June 2021

The Chartered Institute of Payroll Professionals

Payroll: need to know

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Introduction

Payroll: need to know , has been produced by the CIPP Policy and Research team for the exclusive benefit of members. It contains all relevant payroll, pensions and reward News Online items and is indexed and categorised for easy reference. Each item is in date order (the most recent entry being at the bottom) to ensure you know you have the latest updates on any given subject. Payroll: need to know is produced on a tax year basis and by the end of each tax year will be closed off and restarted with any significant live news items being carried forward to the following year’s edition and then added to on a weekly basis with each edition of News Online.

Using the index is easy – find your topic of interest and CTRL + click will take you straight there.

The titles of new news articles added in the last fortnight are highlighted in blue to ensure that they will be clearly visible in the index.

If you have any comments or suggestions about Payroll: need to know - your guide to UK payroll legislation and reporting , please email policy@cipp.org.uk

Copyright

Copyright © 2021 Chartered Institute of Payroll Professionals (CIPP)

Published June 2021

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by other means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of the copyright holder. This publication may not be sold, lent, hired out or otherwise dealt with in the course of trade or supply in any form of binding or cover other than that in which it is published without the prior permission of the publisher.

The CIPP logo may not be used to endorse any product or service. Any attempt to use the CIPP logo to represent that CIPP endorses a service or product is strictly prohibited

This publication contains public sector information licensed under the Open Government Licence v3.0.

Whilst every effort has been made to ensure the information included in this publication complies with current legislation the CIPP cannot be held responsible for any errors or omissions.

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Contents

Apprenticeships .................................................................................................. 6 New consultation on the creation of flexible apprenticeships published .............................................................. 6 Employers of apprentices can now apply for £3,000 incentive payment ............................................................. 6 CIPP Policy & Research...................................................................................... 7 Quick Poll results: 49% of companies use P11Ds to report taxable benefits....................................................... 7 New Quick Poll: supply chains............................................................................................................................. 7 CIPP survey: LPC minimum wage rates for 2022................................................................................................ 7 New Quick Poll: Checking CJRS Claims ............................................................................................................. 8 Survey reminder: LPC minimum wage rates for 2022 ......................................................................................... 8 The CIPP Benchmarking Survey 2021 ................................................................................................................ 9 Payrolling of Benefits survey ............................................................................................................................... 9 CIPP Payrolling of Benefits survey ...................................................................................................................... 9 Compliance ........................................................................................................ 10 Understanding HMRC’s compliance check process ...........................................................................................10 Coronavirus (COVID-19) ................................................................................... 10 HMRC coronavirus-related webinars..................................................................................................................10 Further Treasury Direction published in relation to the SEISS............................................................................11 Fourth SEISS grant deadline – 1 June 2021 ......................................................................................................11 Coronavirus Job Retention Scheme (CJRS).......................................................................................................12 March CJRS claims deadline approaches ..........................................................................................................12 Further Treasury Direction made in relation to the Coronavirus Job Retention Scheme ....................................12 CJRS guidance updates – 22 April 2021............................................................................................................13 CJRS extension: CIPP flow chart .......................................................................................................................13 Coronavirus Job Retention Scheme guidance updates ......................................................................................14 New template available for employers claiming for 16-99 employees through CJRS.........................................14 Furlough figures drop between March and April 2021 ........................................................................................15 Employer CJRS claims: March 2021 ..................................................................................................................15 Data protection .................................................................................................. 16 Employment News ............................................................................................ 16 In-person right to work checks delayed until 21 June .........................................................................................16 Employment Law & Guidance ..............................................................................................................................16 Employment Tribunals..........................................................................................................................................16 Addison Lee drivers classed as ‘workers’ ...........................................................................................................16 Gary Lineker in IR35 court battle with HMRC .....................................................................................................17 Ethnicity Pay Gap..................................................................................................................................................17 Executive Pay ........................................................................................................................................................17 Gender Pay Gap ....................................................................................................................................................17 General Employment News ..................................................................................................................................17 Happy new tax year day! ....................................................................................................................................17 Italian hospital employee accused of skipping work on full pay for 15 years ......................................................18 Right to work checks will be conducted in person from 17 May 2021.................................................................19 Arrests made in connection to £3.4 million furlough fraud ..................................................................................19 Letters sent to 10,000 employers regarding potential CJRS errors ....................................................................20 Planning BACS payments around bank holidays ...............................................................................................20 £1,000 incentive for employers offering T-Level student placements .................................................................21 Employers of apprentices can now apply for £3,000 incentive payment ............................................................21 Modern Working Practices (Good Work Plan) ....................................................................................................22 Expenses, Benefits & Reward.......................................................................... 22 Class 1A National Insurance contributions on benefits in kind ...........................................................................22 Childcare................................................................................................................................................................22 Company Cars .......................................................................................................................................................22 Guide 480: Expenses and benefits.....................................................................................................................22 Advisory fuel rates for company cars from 1 June 2021 .....................................................................................22 Government News............................................................................................. 23 Further Treasury Direction published in relation to the SEISS............................................................................23 Further Treasury Direction made in relation to the Coronavirus Job Retention Scheme ....................................24

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Mini umbrella firms – fraudulent practice adopted by some that is costing the UK millions ................................24 Queen’s Speech delivered in the House of Lords in scaled -back ceremony ......................................................25 Government confirms creation of new workers’ watchdog .................................................................................26 Budget ....................................................................................................................................................................27 EU Exit (Brexit) ......................................................................................................................................................27 The deadline for applications to the EU Settlement Scheme falls this month .....................................................27 Data protection .................................................................................................. 27 HM Revenue & Customs................................................................................... 27 General HMRC News.............................................................................................................................................27 Understanding HMRC’s compliance check process ...........................................................................................27 PAYE draft forms: P60 (2021 to 2022) ...............................................................................................................28 Corrections to payroll for tax year 2020-21.........................................................................................................28 PAYE: PAYE Settlement Agreement (PSA1) 2020-21 .......................................................................................29 HMRC calculator issues .....................................................................................................................................29 Stance on Mutuality of Obligation remains unchanged.......................................................................................30 HMRC calculator issues resolved.......................................................................................................................31 Updates to the CEST Tool landing page ............................................................................................................31 Latest CJRS statistics published ........................................................................................................................32 Applying due dilligence principles to supply chains ............................................................................................32 Have your say on the future of the GOV.UK pages ............................................................................................33 A reminder about the EYU for tax years 2020-21 and beyond ...........................................................................34 HMRC Employer Bulletins ....................................................................................................................................34 Employer Bulletin 89: April 2021.........................................................................................................................34 Making Tax Digital .................................................................................................................................................35 National Insurance ............................................................................................ 35 CA38: National Insurance contributions tables A, H, J, M and Z ........................................................................35 Various NICs guidance updated for tax year 2021-22 ........................................................................................36 Class 1A National Insurance contributions on benefits in kind ...........................................................................36 The National Insurance Contributions Bill 2021 is published ..............................................................................36 National Insurance contribution category M in GNS messages ..........................................................................36 National Minimum Wage / National Living Wage ........................................... 37 National Living Wage and National Minimum Wage calculator...........................................................................37 NMW guidance updated to reflect Supreme Court’s ruling on sleep -in shifts .....................................................38 HMRC webinar: National Minimum Wage – unpaid and expenses only work ....................................................38 Latest LPC report explains how COVID-19 has impacted compliance with NMW regulations ...........................38 Off-payroll Working........................................................................................... 39 Off-payroll working and statutory payments........................................................................................................39 Stance on Mutuality of Obligation remains unchanged.......................................................................................40 Off-payroll working – working through an umbrella company guidance..............................................................40 Office of Tax Simplification .............................................................................. 41 OTS publish scoping document which makes proposals about potentially moving tax year end date................41 PAYE (Pay As You Earn) .................................................................................. 41 Attachment of Earnings Orders (AEOs, DEAs)...................................................................................................42 Expat News ............................................................................................................................................................42 General PAYE News..............................................................................................................................................42 Payroll Software Updates ................................................................................. 42 Statutory Pay and Leave................................................................................... 42 Statutory pay tables 2021-22..............................................................................................................................42 Off-payroll working and statutory payments........................................................................................................42 Statutory Sick Pay (SSP) ......................................................................................................................................43 Statutory Parental Bereavement Pay (SPBP) and Parental Bereavement Leave (PBL) ..................................43 Shared Parental Leave and Pay ...........................................................................................................................43 Student Loans ................................................................................................... 43 Pensions ............................................................................................................ 43 Recognised overseas pension schemes notification list .....................................................................................43 Three appear in court in connection with pension fraud .....................................................................................44 Recognised overseas pension schemes notification list .....................................................................................45 Action Fraud reminds savers to stay alert and to protect their pensions ............................................................46

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The Pension (Non-Taxable Payments Following Death) (Real Time Information) Regulations 2021.................46 HMRC Pension Schemes Newsletter 129 – April 2021 ......................................................................................47 Government consultation proposes two-page statements for Defined Contribution pensions ............................49 Recognised overseas pension schemes notification list .....................................................................................50 The Pensions Regulator releases its latest three-year plan................................................................................51 P55 repayment claim form for tax year 2021-22.................................................................................................51 Recognised overseas pension schemes notification list .....................................................................................52 Automatic Enrolment ............................................................................................................................................53 Pensions Dashboard.............................................................................................................................................53 Consultation to be launched on the Pensions Dashboards’ draft regulations .....................................................53 Plans for the Pensions Dashboards Programme unveiled in call for input .........................................................54 State Pensions.......................................................................................................................................................54 Backto60 state pension appeal denied by the Supreme Court ...........................................................................54 Recognised overseas pension schemes notification list .....................................................................................48 Redundancy....................................................................................................... 55 Tax Agents and Advisers ................................................................................. 55 HMRC publishes Agent Update 83.....................................................................................................................55 HMRC publishes Agent Update 84.....................................................................................................................56 Tax Avoidance & Evasion................................................................................. 57 Clamping down of promoters of tax avoidance...................................................................................................57 Draft statutory instrument: Disclosure of Tax Avoidance Schemes (DOTAS).....................................................57 Termination Payments...................................................................................... 58 Changes to PENP: 6 April 2021 .........................................................................................................................58

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Apprenticeships

New consultation on the creation of flexible apprenticeships published 21 April 2021

A new consultation has been launched, which requests views on how new flexi-job apprenticeship schemes could potentially work.

The flexible apprenticeship opportunities will be available to certain sectors, including the creative, agriculture and construction industries.

Apprenticeships last for a minimum period of 12 months, so some sectors which offer flexible employment patterns and short-term roles have found creating enough opportunities to be problematic.

Flexi-job apprenticeships were initially introduced by the Chancellor of the Exchequer, Rishi Sunak, within the Budget, delivered on 3 March 2021. The new flexi-job apprenticeships would mean that an apprentice would be able to work across a range of projects, with a variety of employers to gain the full skills and experience they require to complete the apprenticeship programme. As an example, an apprentice who worked within film, TV or theatre production would now have the opportunity to work on a variety of productions throughout their apprenticeship. In July 2021, employers will have the opportunity to apply for a portion of the £7 million fund which will be made available to both create and test new flexi-apprenticeship schemes, with the intention of the first approved flexi-job apprenticeships commencing in January 2022. The £7 million will be available across the periods of 2021-22 and 2022-23.

The flexi-job apprenticeship consultation will close on 1 June 2021, after running for a period of six weeks. It requests views from employers, apprentices, sector bodies and existing apprenticeship training agencies.

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Employers of apprentices can now apply for £3,000 incentive payment 2 June 2021

Employers who hire apprentices between 1 April 2021 and 30 September 2021 can apply for a £3,000 incentive payment from 1 June 2021.

Businesses intending to claim the payment must set up an apprenticeship service account. The apprenticeship start date must be between 1 April 2021 and 30 November 2021. Applications cannot be made for existing employees who joined the business prior to 1 April 2021, irrespective of whether they started an apprenticeship after this date. The payment will be in addition to the £1,000 that employers are already entitled to for hiring an apprentice who is between the ages of 16 and 18 years old, or who are under 25 with an education, health and care plan or who have been in the care of their local authority. To be eligible for the full amount, the apprenticeship must last for a minimum period of one year.

The £3,000 payment will be made in two parts, in equal instalments. The first payment is submitted once an apprentice completes 90 days of their apprenticeship, and the second amount gets sent after a year (365 days).

Businesses can view submitted applications, proposed payment dates and payment statuses via their apprenticeship service account.

Further help is available online.

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CIPP Policy & Research

Quick Poll results: 49% of companies use P11Ds to report taxable benefits 23 April 2021

The CIPP’s latest Quick Poll addressed which process businesses use to report taxable benefits – do they use P11Ds, do they payroll benefits or do they use a combination of both?

The results highlighted that 49% of companies use the legacy process of submitting P11Ds to both employees and HMRC in relation to taxable benefits. 20% of respondents confirmed that they have chosen to process taxable benefits through the payroll in real time, whilst 31% stated that they use a combination of both. The predominant reason for employers using a combination of both methods is because not all benefits can be processed via payroll. Elements such as employer-provided living accommodation and interest-free and low-interest loans cannot be processed via payroll, and still need to be recorded on P11Ds.

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New Quick Poll: supply chains 23 April 2021

The CIPP’s Policy and Research team has published a new Quick Poll, which explores certain supply chains within companies.

The latest question asks:

“Does your business transfer staff, and the a ssociated payroll responsibilities to another company, who provide the staff back to the business at a cost?”

We are aware that payroll professionals are extremely busy at present, but we really appreciate the feedback we receive, that often feeds into wider research. The latest Quick Poll should take less than a minute to respond to.

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CIPP survey: LPC minimum wage rates for 2022 26 April 2021

The CIPP’s Policy and Research team will be submitting a formal written response to the Low Pay Commission’s (LPC) consultation that centres on what the National Living Wage (NLW) and National Minimum Wage (NMW) rates should be from April 2022. In order to collate your views, we have assembled a survey for you to complete, which will allow you to have your say and potentially shape the future of the NLW and NMW rates that will be applied next year. The survey will take approximately 15 minutes to complete, and we know how busy payroll professionals are, particularly at the moment, so we really appreciate any time and effort taken to contribute.

The survey invites feedback and opinions on:

• The impacts of coronavirus, in particular on both employers and workers in lower-paying sectors • The affordability of the NLW rates proposed for 2022 and, in the longer-term, for 2024 • The intention of reducing the NLW age to 21 by 2024 • The effects of the NLW since it was introduced in April 2016

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The survey will close at 23:45 on Friday 28 May 2021, so don’t miss the opportunity to have your say.

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New Quick Poll: Checking CJRS Claims 4 May 2021

As the Coronavirus Job Retention Scheme (CJRS) is expected to close at the end of September 2021, we know that the next big activity from HMRC will be related to compliance, and checking the accuracy of claims submitted under the scheme. In recognition of this, The CIPP’s Policy team has launched a new Quick Poll to gauge how many of you – the payroll professionals – have had the capacity to check the claims that you have made, as we appreciate that you have all been particularly busy over the last year. Additionally, for those that have been able to review their CJRS claims, have any of you identified mistakes? With payroll departments expected to deal with the business-as-usual tasks of ensuring workers were paid both accurately and on time, whilst grappling with the administration of a whole new scheme, it would not be surprising to hear that errors have been made. The latest Quick Poll will take less than a minute to respond to, and feeds in to invaluable research on the topic of the measures implemented by the Government to support both individuals and businesses through the coronavirus pandemic.

Thank you in advance for your contributions.

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Survey reminder: LPC minimum wage rates for 2022 7 May 2021

The CIPP’s Policy team has published a survey , which will help to shape the CIPP’s formal response to the Low Pay Commission’s (LPC) consultation on what the National Living Wage (NLW) and National Minimum Wage (NMW) rates should be from April 2022.

Open until 23:45 on Friday 28 May 2021, the survey should take roughly 15 minutes to complete.

We are aware that payroll professionals are especially busy at the moment, ensuring employees are paid both accurately and on time, with many still administering the Coronavirus Job Retention Scheme (CJRS), but this survey provides the opportunity for you to make your voice heard, and to feed in to research on the future of NLW and NMW rates. The survey explores the impact of coronavirus, the affordability of the currently proposed NLW rates for 2022, the intention to reduce the NLW age to 21 by 2024, and more broadly, the effects of the NLW since its introduction back in April 2016.

We would like to thank you in advance for responding to our survey on the topic of minimum wage rates.

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The CIPP Benchmarking Survey 2021 28 May 2021

Payroll Professionals have really been given a voice throughout the pandemic and were deservedly recognised as key workers. The CIPP’s Policy team is requesting that you use that voice to respond to our Benchmarking Survey.

The report compiled from the results of the survey can be utilised as a tool to highlight the current productivity of your payroll team in comparison with the wider market. It will also provide insight into the current salaries and benefits offered for various payroll roles, to establish whether your company is operating competitively or not. We need the input of you – the payroll professionals – who work in an operational environment and who strive to ensure that employees are paid both accurately and on time each pay period. To make this report a success, we need responses from as many of you as possible so that we can provide a true representation of the industry and how it currently works.

The survey should take approximately 15 minutes to complete, and upon completion, respondents will receive a free copy of the report once it has been finalised.

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Payrolling of Benefits survey 2 June 2021

You may have noticed that HMRC referred to the P11D process as being ‘legacy’ within the Employer Bulletin: April 2021. Whilst businesses can report taxable benefits using either P11Ds or by payrolling benefits in real time, there does seem to be a shift towards encouraging the practice of payrolling benefits. The CIPP is carrying out some work in conjunction with HMRC to understand how many businesses submit P11Ds and how many process benefits via payroll. The Policy team has created a survey which explores that exact topic and aims to understand the reasons behind why businesses use the method that they do.

The survey also asks if there are any key barriers for businesses when it comes to payrolling benefits, where they are using the P11D process, and asks questions around deadline dates and the guidance that is available.

The survey should take approximately three minutes to complete and will be available until 30 June 2021. We are aware that payroll professionals are extremely busy at the moment and really appreciate any time that is taken to respond to the survey.

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CIPP Payrolling of Benefits survey 9 June 2021

One of the key areas of work carried out by the Policy team relates to research and collating the views and feedback of payroll professionals on the processes and work that they carry out within their jobs.

The CIPP is currently working alongside HMRC to establish which method employers use to report taxable benefits. Do they utilise the ‘legacy’ P11D process, do they payroll benefits in real time or do they use a combination of both?

In order to understand which practices are used, a new survey on the topic of payrolling benefits has been produced, which also explores the reasons behind why businesses use the processes that they do. Additionally, there are questions that address deadline dates and ask for opinions on the usefulness of the guidance that is currently available.

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We are aware that payroll professionals are still grappling with the Coronavirus Job Retention Scheme (CJRS), and are potentially busier than ever, so we really appreciate any time that you take to respond to the survey. It will take roughly three minutes to complete and will be available to respond to until 30 June 2021.

Don ’t miss the opportunity to have your say and respond to our latest survey today!

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Compliance

Understanding HMRC’s c ompliance check process 6 April 2021

In order to assist individuals in understanding HMRC’s compliance check process, a help and support page was published, and a series of YouTube videos were made available.

A new YouTube video has recently been added, entitled ‘Help if you can’t pay your tax bill’, which provides an overview of how HMRC will support those who are unable to pay a tax debt.

All of the videos, including the most recently added one, can be accessed here, and the new video is number five on the playlist.

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Coronavirus (COVID-19)

HMRC coronavirus-related webinars 13 April 2021

As employers are still able to make claims through the Coronavirus Job Retention Scheme (CJRS), and can reclaim Statutory Sick Pay (SSP) for certain periods of coronavirus-related absence, HMRC is still offering several webinars on both topics.

CJRS webinar

Businesses have until 14 April 2021 to submit claims relating to the pay period of March 2021. The CJRS webinar includes information concerning:

Who can claim

• • • •

Who can be claimed for

How to calculate what can be claimed

How to submit a claim

Anyone wishing to join the webinar can register here.

Coronavirus SSP Rebate Scheme webinar

The Coronavirus SSP Rebate Scheme webinar provides guidance on:

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Who can claim

• • • • •

Who can be claimed for How to submit a claim

What employers may be entitled to Record keeping requirements

Registration for the Coronavirus SSP Rebate Scheme webinar can be completed here.

There will be the opportunity to ask questions during these webinars, using an on-screen text box. There will also be the chance to download handouts which provide detailed examples and links to additional guidance.

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Further Treasury Direction published in relation to the SEISS 15 April 2021

HM Treasury published a further Treasury Direction and minor correction piece in relation to the fourth grant that will be available under the Self-Employment Income Support Scheme (SEISS).

Claims can be submitted from late April and will cover the periods of February, March and April. Workers who meet the qualifying criteria can claim 80% of average monthly profits, capped at £2,500 per month. The payment will be made in one lumpsum, so the maximum that can be received will be £7,500.

The document discusses:

Introductory provisions

• • • •

Eligibility

SEISS 4 payments General elements

The document also confirms that claims for the fourth grant must be submitted by no later than 1 June 2021.

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Fourth SEISS grant deadline – 1 June 2021 1 June 2021

Anyone intending to make a claim for the fourth grant under the Self-Employment Income Support Scheme (SEISS) must ensure that they do so by no later than 1 June 2021. Submissions can be made here.

Individuals must check that they meet all the eligibility criteria prior to making a claim, and will require certain information, as follows:

• Their Self-Assessment Unique Taxpayer Reference (UTR) • Their National Insurance (NI) number • Their Government Gateway user ID and password • Their UK bank details – to include the account number, sort code, name on the account and address linked to the account

There is a reminder that individuals must submit claims themselves and must not request that a tax agent or adviser does this on their behalf, as it will trigger a fraud alert, which may delay payment of the grant.

HMRC will check claims and pay the grant into nominated bank accounts within six working days.

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Coronavirus Job Retention Scheme (CJRS)

March CJRS claims deadline approaches 14 April 2021

The deadline for submitting claims relating to the period of March 2021 under the Coronavirus Job Retention Scheme (CJRS) is fast approaching, so payroll professionals should ensure that they send off the appropriate information within the correct timeframes.

Claims for March 2021 must be submitted by no later than 23:59 on 14 April 2021, and can be sent via the online portal here.

The amount that employers can claim remains at 80% of an employee’s wages for any of the hours they would usually work that they spend on furlough, up to a cap of £2,500 per month. This will be the case for claim periods running up until the end of June 2021. For the claim period of July 2021, the level of Government support will reduce to 70% of an employee’s wages for any of the hours they usually work that they spend on furlough, up to a maximum of £2,187.50 per month. Employers will be required to contribute 10% at this point.

For August and September 2021 claim periods, employers can claim for up to 60% of an employee’s standard wages, up to a cap of £1,875 per month. Employers will need to contribute 20%.

The scheme is then due to close on 30 September 2021.

A step by step guide is available for employers to help them with claiming for their employees’ wages through the CJRS.

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Further Treasury Direction made in relation to the Coronavirus Job Retention Scheme 20 April 2021

The Treasury has published a further Direction in relation to the Coronavirus Job Retention Scheme (CJRS).

This allows the CJRS to be extended for the period commencing 1 May 2021 and ending on 30 September 2021. The schedule to the latest Direction provides for the tapering of the support in the claim periods of July, August and September 2021. Additionally, it extends the Real Time Information (RTI) cut-off date to 2 March 2021.

Claims for the period of May 2021 can be submitted from today (19 April 2021).

As a reminder, the upcoming deadlines for future claims is as follows:

Claim for furlough days in

Claim must be submitted by

April 2021

14 May 2021

May 2021

14 June 2021

June 2021

14 July 2021

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Claim for furlough days in

Claim must be submitted by

July 2021

16 August 2021

August 2021

14 September 2021

September 2021

14 October 2021

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CJRS guidance updates – 22 April 2021 23 April 2021

Updates have been made to various guidance pages that discuss the Coronavirus Job Retention Scheme (CJRS).

Check which employees you can put on furlough to use the CJRS

Check if your employer can use the CJRS

Other types of employee you can claim for

The sections which discuss the other types of employees that claims can be submitted for have been updated to confirm that contractors who are in scope of the off-payroll working rules, who are engaged with either the public sector, or a medium-sized organisation or large-sized organisation in the private sector, can be claimed for under the CJRS.

Additionally, some amendments have been made to the guidance for those individuals classed as being clinically vulnerable, and for when employees are self-isolating, or on sick leave.

Calculate how much you can claim using the CJRS

Guidance has been updated to confirm that the CJRS grant can be amended in situations where too much Employment Allowance has been claimed.

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CJRS extension: CIPP flow chart 29 April 2021

The announcement, at Budget on 3 March 2021, that the Coronavirus Job Retention Scheme (CJRS) would be extended until the end of September 2021, came with it the news that, for periods commencing on or after 1 May 2021, more individuals could potentially be eligible for the scheme. The CIPP’s Policy team has produced a useful flow chart for members to use when establishing firstly, whether an employee is eligible for furlough, and if they are, then the method to apply when calculating furlough payments, based on whether employees are fixed paid or variably paid, and when they were employed and included on a Real Time Information (RTI) submission.

The team recommends that you print a copy of this flow chart off for use when determining the method of calculation required for each employee.

CIPP comment

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The flow chart is a member-only benefit, so if you would like to gain access to this and other helpful payroll resources, then please contact Membership, at Membership@cipp.org.uk.

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Coronavirus Job Retention Scheme guidance updates 10 May 2021

There have been some further updates to various guidance on the Coronavirus Job Retention Scheme (CJRS). The list of employers who have made a claim under the CJRS has been updated to reflect information for claim periods from December 2020 to February 2021:

Employers who have claimed through the Coronavirus Job Retention Scheme

Additionally, details for claim periods from December 2020 to February 2021 are now available on Personal Tax Accounts.

The following guidance pages have been adjusted to state that claims for the period of April 2021 must be submitted by 14 May 2021:

Check if your employer can use the Coronavirus Job Retention Scheme Check if you can claim for your employees' wages through the Coronavirus Job Retention Scheme Calculate how much you can claim using the Coronavirus Job Retention Scheme Claim for wages through the Coronavirus Job Retention Scheme Reporting employees' wages to HMRC when you've claimed through the Coronavirus Job Retention Scheme Check which employees you can put on furlough to use the Coronavirus Job Retention Scheme

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New template available for employers claiming for 16-99 employees through CJRS 1 June 2021 Anyone who has had to endure the laborious process of inputting 99 employees manually into the HMRC Coronavirus Job Retention Scheme (CJRS) portal can now breathe a sigh of relief, as a new template has been made available for employers submitting claims for between 16 and 99 employees. Previously, a template could only be submitted for claims including 100 employees or more.

Employers wishing to submit a claim for between 16 and 99 employees on, or following, 27 May 2021, will be able to do so by submitting a file that contains the following information for each employee:

Their full name

• Their National Insurance (NI) number – or payroll reference number if the NI number is not available • Payroll reference number • Furlough start and end date (in the format DD/MM/YYYY) • Full amount claimed (in pounds and pence) • Normal hours (using decimals) • Actual hours worked (using decimals) • Furloughed hours (using decimals) • Whether the employee has returned from statutory leave and then been placed on furlough

The template could be rejected if the information is not provided in the correct format, but if this is the case then a message will appear on screen. This will mean that the claim will not be processed.

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When using the template, it is essential that:

• Only the employee information requested above is included • One line per employee is submitted for the whole period • The calculation is not broken up into multiple periods within the claim • Data is not split by contract type – so, those paid on a weekly and monthly basis should be claimed together • The correct amount of columns are provided – not less and not more • The file is uploaded as an .xlsx

If employers are claiming for 100 or more employees, they should continue to use this template.

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Furlough figures drop between March and April 2021 4 June 2021

HMRC has published the latest set of Coronavirus Job Retention Scheme (CJRS) statistics which confirm that the number of employments on furlough decreased by 900,000 in the period between 31 March 2021 and 30 April 2021.

As of 30 April 2021, 3.4 million employments were recorded as being on furlough. Numbers of staff on CJRS were last at their highest at 5.1 million in January 2021 and have decreased since that point.

Alongside the data there is a caveat which states that the data for April 2021 is not yet fully complete as claims for April 2021 could be amended until 28 May 2021 and, if employers had a reasonable excuse for submitting their claim after 14 May 2021 (the deadline for April 2021 claims), then HMRC may have accepted a late submission. It is anticipated, however, that these two factors will have a minimal effect on the statistics.

Since the CJRS was introduced, a cumulative total of 11.5 million jobs have been placed on furlough at various times.

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Employer CJRS claims: March 2021 8 June 2021

HMRC has published an updated list of employers who utilised the Coronavirus Job Retention Scheme (CJRS) to include details of those claiming for the period of March 2021.

For March, no employers claimed within the banded ranges of £50,000,001 to £100,000,000 or £100,000,001 and above.

Only three employers submitted claims with a total value of between £25,000,001 and £50,000,000 relating to March 2021. There were six employers who claimed within the range of £10,000,001 and £25,000,000 for the same period. At the other end of the scale, 754,849 employers claimed within the lowest bracket of between £0.01 and £10,000. When compared to employer usage of the scheme back in December 2020, in which seven employers actually claimed between £50,000,001 and £100,0000,000, when combined with the latest set of CJRS statistics published by HMRC, it appears that the level of employer reliance on the scheme is becoming less as time goes on.

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Payroll: need to know

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Data protection Employment News

In-person right to work checks delayed until 21 June 13 May 2021

The mandatory reinstatement of face-to-face right to work checks as opposed to digital checks has been delayed until 21 June 2021, as opposed to the originally intended date of 17 May 2021.

The Association of Professional Staffing Companies (APSCo) and the Recruitment and Employment Confederation (REC) confirmed the news, which comes following campaigning by the groups, alongside other stakeholders.

A letter was submitted to the Home Secretary, which stated that various employment groups felt that the previous deadline was “unreasonable” and “unrealistic from an operational point of view” due to the safety compliance procedures that need to be implemented. Additionally, the letter reasoned that digital right to work checks should be allowed on a permanent basis, as this would ensure a “more agile and robust process” behind getting people into work, which would be in clear alignment with the Government’s post - coronavirus “build back better” agenda .

The Home Office is yet to confirm this in writing, but as soon as an announcement is made, updates will be provided in News Online, and also across the CIPP’s social media platforms.

CIPP comment

Has the digital right to work check process impacted your team specifically, or even the wider business? Do you think that the digital checks should be a permanent option? Please submit your views and feedback to the Policy team, at Policy@cipp.org.uk.

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Employment Law & Guidance

Employment Tribunals

Addison Lee drivers classed as ‘workers’ 27 April 2021

A ruling has confirmed that drivers working for the private hire and cab and courier service, Addison Lee, should be classified as ‘workers’, and will subs equently be entitled to the rights that workers receive.

This follows on from the outcome of a Supreme Court case in February 2021, which found that Uber workers should also be classed as workers. The latest decision means that Addison Lee may need to pay large sums out to its drivers, with estimates being made that each impacted worker will be entitled to an average of £10,000 in compensation. This relates to underpayments to those who have not received the National Living Wage (NLW) or National Minimum Wage (NMW), and also to payments not received in connection with annual leave.

The Court of Appeal refused Addison Lee’s request to appeal a 2017 Emplo yment Tribunal (ET) decision that asserted that its drivers were workers. The original ET highlighted an overarching contract between Addison Lee and its drivers,

The Chartered Institute of Payroll Professionals

Payroll: need to know

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