A summary of HMRC’s October 2023 bulletin

HMRC recently released its latest employer bulletin, updating employers on the latest support available to them, upcoming events that may impact their PAYE, and updates on tax and changes to guidance.

Below is a summary of some of the key points from Octobers bulletin.

Correcting payroll mistakes for an earlier tax year

From April 2019 HMRC changed the way in which employers can correct payroll mistakes for an earlier tax year.

If you reported the wrong pay or deductions

To correct a mistake made in the current tax year, update the year-to-date figures in your next regular Full Payment Submission (FPS).

The rules are different if you find a mistake in your final FPS of the year.

Reporting PAYE information in real time when payments are made early at Christmas

In 2019 the HMRC introduced a permanent easement on reporting PAYE information in real time. They are aware some employers pay their employees earlier than usual over the Christmas period.

If you do pay early over the Christmas period, please report your normal or contractual payday as the payment date on your Full Payment Submission (FPS) and ensure that the FPS is submitted on or before this date.

For example, if you pay on Friday 15 December 2023 but the normal or contractual payment date is Friday 29 December 2023, you will need to report the payment date on the FPS as 29 December 2023 and ensure the submission is sent on or before 29 December 2023.

This will help to protect your employees’ eligibility for Universal Credit, as reporting the payday as the payment date may affect current and future entitlements.

The overriding PAYE reporting obligation for employers is unaffected by this exception and remains that you must report payments on or before the date the employee is paid.

Apply the new Alcohol Duty rates and check the new reliefs when submitting your return this month

In the August edition of Employer Bulletin, HMRC outlined the new Alcohol Duty rates and reliefs, which we introduced on 1 August 2023.

If you are a producer, importer or reseller of alcoholic products, you need to be aware of the new Alcohol Duty structure, so you can accurately account for Alcohol Duty in your return.

Before submitting your Alcohol Duty return this month, make sure you apply the new rates and check if you can take advantage of the new reliefs.

Getting your new starter’s National Insurance number just got quicker

If your new starters are unsure where to find their National Insurance number, the quickest way to do so is by using the HMRC app or pay online.

Within minutes they can access their number, and get their National Insurance number confirmation letter if this is needed.

For future access, they can also add their National Insurance number to their Apple or Google wallet.

Fit note — new guidance for employers

The HMRC have recently relaunched fit note guidance, designed to facilitate and enhance the health and work conversation with your employees, and how you can discuss workplace modifications to support them to stay in, or return to work.

They have also created an employer’s checklist to highlight key points to support the discussion between you and your employee after they have been issued with a fit note by an eligible healthcare professional. The full HMRC bulletin is available here.

If you would like to discuss any of the topics discussed in this article, please get in touch with Richard Arthur.