- Submit paper or electronic forms P46 (car)
- Onshore & offshore employment intermediaries – quarterly reports
- PAYE and NICs reporting and payments
- CIS reporting and payment dates
- Check for new advisory fuel rates
- Payment of PAYE Settlement Agreement (PSA) liabilities
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 July 2018 and 5 October 2018 are required to be received by HMRC by 2 August 2018 and 2 November 2018 respectively.
Onshore & offshore employment intermediaries – quarterly reports
Deadline for action: 5 August 2018 and 5 November 2018
Issue: Employment intermediaries are required to make quarterly reports to HMRC. The quarterly reports for the quarters to 5 July 2018 and 5 October 2018 are due by 5 August 2018 and 5 November 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.
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.
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.
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.
Issue: Tax and Class 1B National Insurance contributions (NICs) are due on benefits in kind included in a 2017/18 PSA. Cheques sent by post must arrive at HMRC’s Accounts Office by 19 October to avoid penalties. The deadline is extended to 22 October for electronic payments.
Action: Employers that entered into a PAYE Settlement Agreement for 2017/18 should make payment by 19 October (22 October for electronic payments) based on the figures shown on the PSA1 calculation form.