Every two months HMRC share a bulletin of updates for employers to keep up to date with any changes or upcoming changes that may impact them. Keeping informed, especially in the current climate, is critical to ensure compliance and avoiding any issues arising later.
The full bulletin can provide full detail however we have summarised the key points below.
Coronavirus Job Retention Scheme (CJRS) - As of 1 August the CJRS will not be covering furloughed employees National Insurance (NI) or pension contributions. This must be covered as by the Employer going forward. It has also been announced that as of 1 September the CJRS will reduce furlough payments to 70 per cent whilst the Employer will need to make up the 10 per cent to meet the 80 per cent of wages. The bulletin also explained how to ensure readiness for the claim process and made confirmation that workplace pension responsibilities remained for Employers for all employees even if on furlough.
Redundancy payments - It has been confirmed that all employees to receive any termination payments will be paid at the employees’ usual rate and not the 80 per cent received if on furlough.
IR35 - A reminder had been provided that as of April 2021 the changes of off-payroll working will be in effect. HMRC provide detail on how to prepare for the changes including the use of the Check Employment Status Tool (CEST) which assists employers to review their workforce employment status.
PAYE online service for reporting - HMRC have confirmed that the PAYE Expenses and Benefits service is being redesigned in line with the Government Design standards and is focusing on making the process more user focused and friendly. They are asking for employers with 5-250 employee to volunteer to participate in user research. More detail about the changes will be provided late this year before release is expected in last quarter of 2020.
Loans - The deadline for reporting of outstanding disguised remuneration loans is 30 September. Anyone affected must complete the online HMRC form and 2018/2019 tax form to report the loans.
The full bulletin can be found here and is highly recommended for employers to take some time to review. By being prepared and taking time to ensure compliance now, even during a busy time, it can really reduce risk of potential issues further down the line. If you have any questions or concerns about the above, please contact Simon Balaam.