HMRC recently released its latest Employer Bulletin, updating employers on latest support available to them, upcoming events that may impact their PAYE, and changes to tax and guidance.
National Insurance Thresholds
There will be threshold changes as of 6 July 2022 that mean employees will pay National Insurance on less of their income. The new primary threshold will become £242 a week/£1,048 a month (equivalent to £12,570 a year).
Real time reporting of PAYE
HMRC reminds employers that it will be continuing a risk-based approach to late filing and penalties for the 2022/2023 tax year.
Penalties will not automatically be applied if a Full Payment Submission (FPS) is filed late, so long as it is within three days of the payment due date and the employer doesn’t have a pattern of previous late filings. Those who repeatedly file late will be contacted and may face penalties.
Employers should file FPS on or before the date of payment to employees. If that date falls on a non- banking date, this will move to the last working day or next working day around the payday.
Deadline reminder for P11D and P11D(b) tax year ending 5 April 2022
Employers must have completed their P11D process by 6 July 2022 at the latest for the tax year ending 5 April 2022. This ensures HMRC knows what the employer’s Class 1A National Insurance contributions are and have their P11D forms. Electronic payment for Class 1A NICs must have cleared into HMRC’s account by 22 July 2022. Failure to meet this deadline may result in penalties.
The full Bulletin provides further topics and more detail to support employers and ensure they are working within the required guidelines.
For more information, please contact Simon Balaam.