HMRC recently released its latest Employer Bulletin, updating employers on latest support available to them, upcoming events that may impact their PAYE, and updates on tax and changes to guidance.
PAYE Settlement Agreements deadline
The deadline for applying for a PAYE Settlement Agreement (PSA) or amending an existing PSA in relation to the 2021/2022 tax year is 5 July 2022.
Electronic payment deadline for May 2022
The deadline of 22 May falls on a weekend, so employers are reminded to adjust accordingly and ensure payment is set to reach HMRC by 20 May 2022. Late payments may result in a penalty.
Reporting expenses and benefits for tax year ending 5 April 2022
Employers may be reporting in one of many ways and should ensure they are fully aware of their responsibilities.
- Employers payrolling benefits in kind will still need to submit a P11D(b) to report the amount of employer Class 1A National Insurance owed. Some employers may also have benefits that sit outside payrolling, and so may still need to provide P11Ds for those benefits.
- Employers not yet payrolling benefits will need to complete the standard P11D process. They can register to begin payrolling expenses from 6 April 2023 by following the instructions on the HMRC website.
- Employers informally payrolling benefits will need to continue to submit P11Ds marked ‘payrolled.’ However, they should also look to formalise the agreement as HMRC may no longer accept new informal agreements.
Claiming Employment Allowance
With effect from April 2022, the Employment Allowance has increased to £5,000 a year. Employers can check they remain eligible for the allowance on HMRC’s website. The allowance continues to be claimed via payroll using the Employer Payment Summary, using HMRC Basic PAYE Tools to make payroll adjustments to reduce Class 1 National Insurance.
The full bulletin covers other topics and provides more detail on those covered here.
Please contact Simon Balaam if you have any questions or concerns.
