27 April 2021
HMRC is aware of technical issues with a couple of the calculators that it offers online that help to assist in ensuring certain elements of pay are accurate. HMRC is currently investigating as a matter of urgency and hopes to have the calculators running correctly as soon as possible.
Company Car and Car Fuel Benefit calculator
There is an issue with the Company Car and Car Fuel Benefit calculator.
When a value is entered into the section of the calculator that queries whether the car is provided via an Optional Remuneration Arrangment (OpRA), and that figure is higher than the cash equivalent of the calculated car benefit, the tool is not replacing the car benefit charge with the higher OpRA figure. This means that the calculator is not currently correctly aligned with OpRA rules.
The relevant section is displayed below:
Is the car provided via an Optional Remuneration Arrangement?
Yes No
If yes, amount foregone in respect of car: *
£
Director’s Class 1 National Insurance Contributions (NICs) calculator
An issue has been identified with the Director’s Class 1 NICs calculator that those dealing with the pay of directors should be aware of.
An issue arises where the figure included in the total cumulative pay section is above the Secondary Threshold (ST) for tax year 2021-22 of £8,840 per year, but at, or below, the figure of £9,568 per year, which is the Primary Threshold (PT) for tax year 2021-22.
The ST is the point at which an employer begins to pay NICs and the PT is the point at which an employee beings to pay NICs.
When a figure of between £8,840 and £9,568 is entered, the employer’s NICs are not being calculated correctly, so those processing payrolls that may be impacted by this should keep this in mind.
CIPP comment
These issues have been identified, and HMRC alerted to them, through feedback from members. Please continue to notify Advisory of any problems of this nature, or contact the Policy team, at Policy@cipp.org.uk.
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Stance on Mutuality of Obligation remains unchanged 30 April 2021
Peter Aldous MP submitted a question for the Chancellor of the Exchequer, which queried whether or not HMRC had changed its stance on updating the Check Employment Status for Tax (CEST) tool to include consideration of Mutuality of Obligation (MOO).
Financial Secretary to the Treasury, Jesse Norman, responded:
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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