- Workplace pension reforms – auto enrolment
- Submit paper or electronic forms P46 (car)
- Onshore and offshore employment intermediaries – quarterly reports
- PAYE and NICs reporting and payments
- CIS reporting and payment dates
- Check for new advisory fuel rates
- Voluntary payrolling of benefits in kind (BIK)
- Exemption for business expenses
Deadline: 1 February 2018 and immediate
Issue: Auto-enrolment, the legal obligation for employers to enrol most of their workforce into a qualifying pension scheme and make employer pension contributions, has been phased-in over recent years and the above deadlines are the final staging dates for remaining employers. For new employers that incurred their first PAYE tax/NICs liability between 1 July 2017 and 30 September 2017 the staging date is 1 February 2018. New employers that incur their first PAYE tax/NICs liability after 1 February 2018 have an immediate duty to auto-enrol most of their workforce. See The Pensions Regulator’s website.
Action: Employers should:
- ensure that they meet their auto-enrolment obligations;
- establish whether their existing pension scheme qualifies, or else take action to ensure they have a qualifying scheme on commencement;
- assess their workforce to identify ‘eligible job-holders’, ‘non-eligible job-holders’ and ‘entitled workers’;
- communicate the changes to their workforce as appropriate;
- put systems in place to meet the many new administrative duties placed on them by the new pension regulations; and
- consider adopting a salary sacrifice arrangement as part of the implementation process.
Deadline for action: 2 February 2018 and 2 May 2018
Issue: Details of company cars provided to employees for the previous quarter should be provided to HMRC using form P46(car). These details are usually submitted electronically. The completed online form can, however, be printed out and submitted in paper form to HMRC by the relevant date. This method cannot be used for replacement vehicles.
Action: P46(car) forms covering the quarters to 5 January 2018 and 5 April 2018 are required to be received by HMRC by 2 February 2018 and 2 May 2018 respectively.
Deadline for action: 5 February 2018 and 5 May 2018
Issue: Employment intermediaries are required to make quarterly reports to HMRC. The quarterly reports for the quarters to 5 January 2018 and 5 April 2018 are due by 5 February 2018 and 5 May 2018 respectively. These reports require a considerable amount of information regarding all workers provided to their clients and related payments where the intermediary, or their payroll operator, did not operate PAYE.
Action: Quarterly employment intermediary reports must be made using HMRC’s report template and submitted using HMRC’s online service. Automatic penalties arise if the report is late or incorrect, with the amount of each penalty depending on the number of offences in a 12 month period: £250 (first), £500 (second) and £1,000 (third and later). The penalty clock is reset once there has been a 12 month period without a late or incorrect return.
Deadline for action: monthly - from 19 (or 22) February 2018
Issue: To avoid interest and penalties, employers should make a Full Payment Submission (FPS) to HMRC at the time they pay their employees and pay over deducted tax and NICs by the due date. Tax and NICs deducted under PAYE should be paid by the 19th of the following month if paid by cheque, or the 22nd if paid electronically. The FPS and, if applicable, an Employer Payment Summary (EPS) should also be submitted by the 19th of the following month.
Action: Employers should submit their FPSs and EPSs (including, where applicable, a report of the apprenticeship levy due and allowance claimed) and pay their PAYE tax and NICs on time. Advance payment should be made where the payment date falls on a weekend. Late payments attract interest at 3 per cent and late filing gives rise to penalties of between £100 and £400 per month, depending on the number of employees.
Employers that have incurred penalties have 30 days to appeal if appropriate.
Deadline for action: monthly - from 19 February 2018
Issue: CIS300 monthly returns of payments made by contractors to subcontractors, and payment of the CIS tax deducted, should be made.
Action: Contractors should submit their CIS300 Returns by the 19th of the following month to avoid late filing penalties. To avoid interest and late payment penalties, CIS tax deducted should be paid by the 19th of the following month if paid by cheque, or the 22nd if paid electronically. Advance payment should be made where the payment date falls on a weekend.
Deadline for action: 1 March 2018
Issue: HMRC revises the advisory fuel rates every quarter. These rates apply when an employer reimburses employees for fuel for business travel in their company cars, and when an employer requires employees to repay the cost of fuel used for private travel in such vehicles.
Action: Employers should review HMRC’s advisory fuel rates each quarter to ensure that they are using the current rates.
Deadline for action: 5 April 2018
Issue: Employers should register online with HMRC, if they have not already done so, to payroll BIKs. The payrolling rules apply to all benefits except living accommodation, loans, vouchers, and credit cards. Benefits payrolled under these rules do not need to be reported on forms P11D.
Action: Employers that are not already payrolling benefits that wish to do so for the 2018/19 tax year and thereafter should register with HMRC as soon as possible so that they can commence payrolling from 6 April 2018. Employers should first consider if systems and procedures support this, and how levels of administration could be affected. Consideration should also be given to the way any changes affect and are communicated to employees.
Deadline for action: 5 April 2018
Issue: A statutory exemption applies to certain business expenses of employees. There is an onus on employers to retain receipts, operate a system for checking expenses claims and ensure that business expenses paid to employees are tax deductible. For example, there is an HMRC approved method of calculating meal allowances for these purposes.
Action: Employers should ensure that their systems and procedures around controlling employee expenses are compatible with the exemption. Employers with an existing HMRC agreement to pay their employees a bespoke scale rate expenses payment will either need to notify HMRC that they want this to continue, or agree new scale rates with HMRC before 6 April 2018.
For more information please get in touch with Bill Longe, or your usual RSM contact.