HMRC bulletin October 2021

29 October 2021

HMRC recently released its latest Employer Bulletin, updating employers on support available and highlighting upcoming events on the tax calendar relevant to them. It covers changes relating to the pandemic, of course, and a range of other issues. Here are the main points you need to know: 

Tax changes 

Changes to tax will be implemented from April 2022 to fund £12bn in spending on NHS and social care in the UK. The government has announced that for one year, starting April 2022, National Insurance contributions will increase by 1.25 per cent for all employees, employers and the self-employed. It then plans to apply a Health and Social Care Levy of 1.25 per cent in April 2023 that will apply to those who pay Class 1, Class1A and 1B and Class 4 National Insurance contributions. 

This Levy will apply in England, Scotland, Wales and Northern Ireland. 

Coronavirus Job Retention Scheme 

Late claims

CJRS claims for September were due on 14 October 2021. Employers who missed the deadline may be able to make a late claim if they have a reasonable excuse.   

Incorrect claims

Claimants should act as soon as possible if their claim was made incorrectly. 

For claims in excess of the entitlement, HMRC should be notified and repaid either:

  • within 90 days of the overpayment being received; or
  • 90 days from when the claim became invalid due to change of circumstance.

Companies that claimed too little under the CJRS must amend their original claims within 28 days of the month the claim relates to. Any changes to September claims must be made by 28 October 2021.

Reporting PAYE information for Christmas payroll

Many employers will plan to move their pay date forward for the Christmas pay run. HMRC reminds them that they should report the information on the Full Payment Submission with the ‘normal’ pay date stated. For example, if the normal pay date is the 25th of the month but is moved earlier, employers should still report the payment date as the 25th. 

The reporting must still meet the obligation and be submitted on or before the date the employee is actually paid.

PAYE Settlement Agreement payments

Any electronic payments of PSAs for tax year end 5 April 2021 should be settled by 22 October 2021. Late payments may result in interest charges or late payment penalties.

HMRC encourages all employers to correctly report by using the PSA1 form. This can be found online and helps standardise the reporting with improved accuracy and quicker processing times.

If you have any questions or concerns about the topics covered in HMRC’s bulletin, please contact Simon Balaam.