Professional June 2024

MY CIPP

PAYROLL news

HM Revenue and Customs (HMRC) overpays staff by £12 million in ten years HMRC HAS overpaid staff by £12.6 million in the past decade. Many of the payments were made to individuals who had left the organisation, according to The Telegraph. In total, £12.3 million has been reclaimed, leaving a shortfall of £300,000. Last year alone, overpayments were made to around 250 individuals totalling £1.1 million, of which £900,000 has been recovered, according to the figures. An HMRC spokesperson said: “With a staff headcount of almost 67,500, we operate at a monthly payroll average accuracy rate of 99.54%, which exceeds the corporate benchmark of 98%. Our total pay bill in the 2022/23 financial year was £2.449 billion, which means that 0.05% was incorrectly paid that year, and we have recovered over 84% of that. Overpayments can occur for various reasons such as

delay in reporting someone has left HMRC, breaking a part-year pay averaging contract, late notification of sick leave or a delay in reporting career breaks / maternity leave. We have robust processes in place for the recovery of over and underpayments and all staff are provided with guidance on the importance of checking the payment of their salary.”

Sky Sports presenter loses tax appeal SKY SPORTS presenter and former footballer Neil McCann has lost his appeal in the Upper Tier Tribunal (UTT) in relation to off payroll working. The dismissal of the appeal lands him with a tax bill of around £210,000 to pay HMRC. The UTT agreed with the previous decision to dismiss the appeal at First Tier Tribunal (FTT), also concluding that McCann’s contract with Sky wouldn’t be viewed as a business in its own right. Speaking to FT Adviser , Dave Chaplain, chief executive officer of off payroll working compliance firm IR35 Shield, highlighted how hard it is to overturn a decision made at FTT. He said: “The key lessons for taxpayers heading to the FTT is to ensure the facts of the case are comprehensively corroborated and presented, because once the FTT has made its decision, it’s very hard to overturn.” Read more here: https://ow.ly/utIR50RtxQb.

Diary dates

5 July 6 July

Last day of tax month 3

First day of tax month 4

Last day for submitting a real time information employer payment summary to apply to tax month 2 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method

19 June

22 June (This is a weekend date)

Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method

5 August 6 August

Last day of tax month 4 First day of tax month 5

| Professional in Payroll, Pensions and Reward | June 2024 | Issue 101 12

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