A summary of the June 2021 HMRC Bulletin

25 June 2021

HMRC has recently released its e-bulletin with the latest updates on support for employers as we continue through the pandemic, as well as other key areas. 

The full bulletin provides more detail, however we have summarised a number of the key points below.

Coronavirus

HMRC has updated its policy paper ‘Covid 19: how HMRC will continue to support customers and the economy’. The outline suggests that as the threat of the pandemic starts reduces some employers will still be impacted greatly and they will make efforts to work with them to meet their needs while collecting tax in line with legislation. 

Coronavirus Job Retention Scheme (CJRS)

For June 2021 the government will continue to pay 80 per cent of the employees usual wage, capped at £2,500 per month. In July 2021 this will reduce to 70 per cent and a cap of £2,187.50 before August and September 2021 reducing to 60 per cent and a cap of £1,875. Employers will need to continue to pay furloughed employees the 80 per cent cap of £2,500 so this will mean funding the difference as the governments support reduces. Employers must also continue to pay the associated tax and National Insurance to HMRC throughout.  

Read more of our guidance on the job retention scheme

Coronavirus and working from home

If employers have asked their employees to work from home the employees may have additional expenses they can claim for. Employers may pay these expenses back, however if they can’t the employee is entitled to claim tax relief to help with these extra costs. HMRC has an online service where employees can claim quickly and is now taking claims relating to periods up to 5 April 2022.  

Read our previous article about additional employee expenses

Student and Postgraduate Loans

HMRC is contacting employers where deductions for employees are being incorrectly recorded on the full payment submission following the update to guidelines. Employers could be made aware of issues by Generic Notification Service (GNS), post or telephone call. It’s wise to remind yourself how these loan repayments should now work if unsure to avoid mistakes.

Reporting expenses and benefits

The deadline for reporting is 6 July 2021 for all employees who have received an expense or benefit in the past year.  

Reporting PAYE in real time

HMRC has reviewed and decided to continue to take a risk- based approach to late filing and late payment penalties for the 2021 to 2022 tax year. Late filing penalties will not be charged automatically if the Full Payment Submission is filed late, but within three days, provided it’s not a regular pattern. Those who miss the deadline regularly will be monitored and may be penalised. 

The full bulletin provides further topics and more detail around the above to support employers and ensure they are working within the required guidelines. 

We can help

If you have any questions or concerns about the HMRC bulletin, please contact Simon Balaam