Payroll: need to know (Latest version)

The Brexit Support Fund allows small and medium-sized enterprise traders to access practical support, which includes training for new customs, rules of origin and VAT processes. The Fund is made up of £20 million and is currently open for applications. The aim of the Fund is to assist smaller businesses with amendments to trade rules set up with the European Union (EU). Smaller businesses are able to apply for grants of up to £2,000 to assist them in adapting to new customs and tax rules when trading with the EU. Those businesses that trade solely with the EU, who may be new to the processes of importing and exporting, are advised to make an application for the grants.

More information, along with details of how to apply, can be found online.

Employer use of National Insurance category M

HMRC intends to raise awareness of the National Insurance (NI) contribution category M, to ensure that employees begin to apply the category to employee records correctly.

As of April 2021, Generic Notification Service (GNS) messages will be sent to employers if data suggests that they need to check the NI contribution category M for their employees. These messages will be sent via the Real Time Information (RTI) portal and it is hoped that this will prompt employers to carry out additional checks, making any corrections that need to be made. The cat egory M was introduced in 2015 to 2016, and provides for a reduction on the amount of employer’s Class 1 secondary NI contributions for any employees who are below the age of 21. Further guidance on this is available online. When employees reach the age of 21, the NI contributions category can no longer be applied to them, and their employers will be required to assign a new NI contribution category.

Back to Contents

HMRC publishes Agent Update 84 21 May 2021

The latest Agent Update issue has been published by HMRC, and includes articles that discuss coronavirus, the UK transition, tax, HMRC agent services and the agent forum and engagement.

The update is aimed at tax agents and advisers with the purpose of providing them with the latest news and guidance.

A couple of the information pieces are included below, but you can read the Agent Update in full here

Statutory Sick Pay Rebate Scheme still in operation

Within the Agent Update, there is confirmation that the Statutory Sick Pay Rebate Scheme for coronavirus-related sickness absence is still in operation.

This scheme provides financial support to employers classed as being either small or medium in size, who had fewer than 250 employees as of 28 February 2020 and who have paid Statutory Sick Pay (SSP) in relation to coronavirus- related absence. The repayment can cover up to a maximum of two weeks’ worth of the relevant rate of SSP.

Agents can claim on behalf of their clients.

Further information and guidance is available online.

Employers providing medical benefits

Employers who use the payrolling of benefits, or the legacy P11D process, to report medical benefits need to be aware of the fact that the 2020-21 taxable value has changed. Certain medical providers will make refunds to employers if services were not provided as initially specified.

The reportable value of the benefit is its cost, with the amount of any refund that related to that year deducted from it, irrespective of when it is received. Employers who are payrolling medical benefits may be required to amend the

The Chartered Institute of Payroll Professionals

Payroll: need to know

Page 56 of 60

Made with FlippingBook - Online magazine maker