Changes to termination payments and post-employment notice pay (PENP)

Background Changes were made to the taxation of termination payments in Finance (No.2) Act 2017, with effect from April 2018 including: the introduction of PENP to ensure that all contractual, customary and non-contractual payments in lieu of notice are considered and consistently subjected to tax and National Insurance contributionsthe removal of foreign service relief on … Continue reading Changes to termination payments and post-employment notice pay (PENP)

Job Retention Scheme guidance updated 22nd April 2021

With the Coronavirus Job Retention Scheme celebrating its 1 year opening with 8.9 million furloughed at one time, HMRC have issued further phased updates (22nd April 2021) to the Coronavirus Job Retention Scheme guidance. Details and links follow: Page titleChangesCheck if your employer can use the Coronavirus Job Retention Scheme (Employee Page)Individuals who are taxed … Continue reading Job Retention Scheme guidance updated 22nd April 2021

Consultation on ‘Raising standards in the tax advice market: professional indemnity insurance and defining tax advice’

Dear Payadvice.U.K. Our consultation on 'Raising standards in the tax advice market' was published on 23‌‌‌rd March 2021. This is your chance to have your say. We need to understand the impact these proposals would have on taxpayers, businesses, the insurance industry and the wider tax advice market, so your views are really important to … Continue reading Consultation on ‘Raising standards in the tax advice market: professional indemnity insurance and defining tax advice’

One-third of Scots unaware of Holyrood’s tax changes as tax and accountancy bodies call for increased awareness of devolved taxes

The Chartered Institute of Taxation (CIOT) and ICAS (the Institute of Chartered Accountants of Scotland) are calling on Scotland’s political parties to improve public awareness of devolved taxation in the next Scottish Parliament, as a new poll shows that a third of Scots are unaware that the Scottish Parliament has made changes to the tax … Continue reading One-third of Scots unaware of Holyrood’s tax changes as tax and accountancy bodies call for increased awareness of devolved taxes

‘Umbrella’ companies under the spotlight

The Low Incomes Tax Reform Group (LITRG) has published a research report looking at the use of ‘umbrella’ companies and other labour market intermediaries in the UK. The factual and technical report also considers the nature and scale of disguised remuneration schemes. It is intended to help increase public knowledge of how labour market intermediaries … Continue reading ‘Umbrella’ companies under the spotlight

Want to Payroll Benefits In Kind (PBIK) and not issue P11Ds anymore?

Register for payrolling benefits and expenses If your considering payrolling benefits and expenses from April 2022, they need to register. This will give time to check software capabilities and also inform employees before the start of the 2022 to 2023 tax year. Payrolling is considered to be quicker easier and more real time. It’s also … Continue reading Want to Payroll Benefits In Kind (PBIK) and not issue P11Ds anymore?

HMRC April 2021 Employer Bulletin

HMRC have issued the April 2021 Employer Bulletin, again, packed full with information. In this month’s edition of the Employer Bulletin there are updates and information on COVID-19 updates and information:Coronavirus Job Retention SchemeVAT deferral new payment schemeNew one-off payment of £500 to support working households receiving tax creditsExtension of filing dates for internationally mobile … Continue reading HMRC April 2021 Employer Bulletin

Cycle training for families and children

As COVID-19 restrictions lift, Transport Secretary invests in the Bikeability cycling proficiency training scheme so that more people can feel confident cycling. government invests record £18 million toward cycle training for children and familiesfunding will ensure children are cycling-confident and whole family groups can receive bespoke training sessions through the Bikeability programmeas restrictions are cautiously … Continue reading Cycle training for families and children

Why does the new tax year start on 6th April?

Why does the tax year start on 6th April each year? Well, it used to be New Year’s Day! In 1752 the British calendar aligned with the rest of Europe (moving from the Julian calendar to the Gregorian calendar) and moved New Year’s Day to 1 January. Until then New Year’s Day was 25th March … Continue reading Why does the new tax year start on 6th April?

HMRC Anti Money Laundering team change name to Economic Crime Supervision

Dear Payadvice, HMRC's Anti Money Laundering Supervision (AMLS) team is changing its name to Economic Crime Supervision (ECS) from 1‌‌ April 2021. This change does not affect our responsibilities under the Money Laundering Regulations or how we will interact with you.   You may continue to see AMLS referenced in correspondence from us during April whilst the changes take effect. You … Continue reading HMRC Anti Money Laundering team change name to Economic Crime Supervision

IR35/Off-Payroll Working – Umbrellas and Agencies

This article is based on HMRC information ESM2390. What is an ‘umbrella company‘? There is no statutory definition of an ‘umbrella company’. It is generally accepted that an umbrella company is a company that employs temporary workers who work for different end clients’. Typically they enter into a contract with a recruitment agency who will … Continue reading IR35/Off-Payroll Working – Umbrellas and Agencies

IR35/Off-Payroll Working – Operating Payroll

This article is based on parts of the HMRC Employment Status Manual ESM10019. How does a Deemed Employer operate PAYE? When the deemed employer operates PAYE, it should do this through payroll. They can add them to an existing payroll or set up a new payroll or PAYE scheme. New Deemed Employee - anything different? … Continue reading IR35/Off-Payroll Working – Operating Payroll

Substitute P60 form approval process changes

HMRC has announced the following easement for those still awaiting approval for substitute P60 forms from HMRC: “A decision has been made by HM Revenue & Customs (HMRC) to introduce an easement of the normal approvals process for substitute P60 forms. This change is due to the impact that both EU-Exit and the current Covid-19 … Continue reading Substitute P60 form approval process changes

Tax year 2021/2022 tax tables published

For those who like to use the tax tables for the occasional manual calculation or problem checking and resolution, the HMRC have published new 2021/2022 tax tables applicable for payments commencing from 6th April 2021. These provide the monthly and weekly calculation tables for the whole of the United Kingdom including the variations for Scotland … Continue reading Tax year 2021/2022 tax tables published

Online Annual tax summaries

The online Annual Tax Summary shows ‎how much tax and National Insurance contributions someone has paid and how Government spends it. Individuals can find the summary by signing into their personal tax account using the Government Gateway User ID and Password that y used to enrol for Self Assessment online, selecting Self Assessment and then … Continue reading Online Annual tax summaries

Government strengthens tax policymaking with over 30 updates, consultations and documents published

The government has published 23rd March 2021 a series of tax documents and consultations in a move to strengthen policymaking and help create a more trusted, simple and modern tax system. government publishes more than 30 tax updates, consultations and documents to strengthen policymaking and modernise UK tax systemlarge number of the announcements form a … Continue reading Government strengthens tax policymaking with over 30 updates, consultations and documents published

Child Care Vouchers – 2021/2022 Basic Earnings Assessment Calculator

Employer who provide childcare vouchers to employees are required to undertake an annual Basic Earnings Assessment (BEA) prior to the start of the tax year to define the tax and NIC free amount of ChildCare Vouchers (CCV). The rates and limits available are set by the Westminster parliament and apply across the United Kingdom. There … Continue reading Child Care Vouchers – 2021/2022 Basic Earnings Assessment Calculator

Set up Self Assessment payment plans by 1st April 2021

Self Assessment taxpayers have until 1st April 2021 to pay any outstanding tax liabilities in full or set up an online payment plan to avoid a 5% late payment penalty. Self Assessment taxpayers have just over a week to pay any outstanding tax liabilities in full or set up an online payment plan for the … Continue reading Set up Self Assessment payment plans by 1st April 2021

Plug-in car, van and truck grant to be targeted at more affordable models to allow more people to make the switch

As more people than ever opt for electric vehicles, the government announces changes to the plug-in car, van and truck grant. The grant scheme for electric cars, vans and trucks has been updated to target less expensive models and reflect a greater range of affordable vehicles available, allowing the scheme’s funding to go further and … Continue reading Plug-in car, van and truck grant to be targeted at more affordable models to allow more people to make the switch

HMCTS telephone numbers used by tax scammers

Scammers using HM Courts and Tribunal Service (HMCTS) telephone numbers to demand tax payments. An increasing number of concerned individuals are contacting offices across HMCTS following emails or phone calls by scammers. Scammers mimic legitimate phone numbers (spoofing) and may allege debts owed to HMRC and that a warrant for arrest has been issued. Scammers … Continue reading HMCTS telephone numbers used by tax scammers

Off-Payroll working (IR35) – Questions about compliance

Ahead of changes to the off-payroll working rules #IR35 on 6th April 2021, the HMRC answer some top questions about compliance that they’ve heard in their webinars and other support they have provided Are changes to the off-payroll working rules happening on 6 April 2021?Does the light touch approach to penalties mean customers don’t need … Continue reading Off-Payroll working (IR35) – Questions about compliance

Pay VAT deferred due to coronavirus (COVID-19)

If your business deferred VAT payments due between 20th March 2020 and 30th June 2020 and it still has payments to make, the business can: pay the deferred VAT in full, on or before 31st March 2021join the VAT deferral new payment scheme – the online service is open between 23rd February 2021 and 21st … Continue reading Pay VAT deferred due to coronavirus (COVID-19)

Payroll 2021/2022: Company car appropriate percentages

The HMRC Software Developers Support Team have provided the following confirmations. Company car appropriate percentages for 2021-22 have been confirmed as below. 1. Cars registered on or after 1 January 1998 with an approved CO2 emissions figure: Please refer to the ‘Company Car Tax’ section at: Annex A rates and allowances 2. Cars registered on … Continue reading Payroll 2021/2022: Company car appropriate percentages

Budget 2021

Dear @PAYadvice, On Wednesday, the Chancellor of the Exchequer, the Rt. Hon Rishi Sunak MP delivered the government’s Budget for 2021. In his speech, the Chancellor announced extensions to a number of current COVID-19 schemes, alongside additional support for individuals and businesses, as the UK continues to navigate the impact of the pandemic, including extending the Coronavirus Job … Continue reading Budget 2021

Chancellor Statement – Budget press conference

Delivered by the Chancellor Rishi Sunak on 3 March. Good afternoon. Earlier today I presented the Budget to the House of Commons. And I’m speaking to you now, directly, to explain what this Budget means for our economy and for you at home. I want to be honest with you about the problems we face … Continue reading Chancellor Statement – Budget press conference

Budget 2021 – Income tax and National Insurance contributions

The government will maintain the income tax Personal Allowance and higher rate threshold and National Insurance contributions Upper Earnings Limit and Upper Profits Limit at their 2021-2022 levels up to and including 2025-2026. HM Treasury have issued the following in relation to announcements at budget 2021: As announced at Spending Review 2020, the government will … Continue reading Budget 2021 – Income tax and National Insurance contributions

Budget 2021 – new Personal tax allowance and higher threshold frozen until April 2026

Already announced tax changes to go ahead on 6th April 2021, but to be frozen until April 2026. PAYadvice.UK Legislation Update 2021 PAYadvice.UK has issued the Legislation Update 2021 including the 6th April 2021 confirmed income tax values. This document is a compilation of the changes due for 2021 for the UK, Channel Islands and … Continue reading Budget 2021 – new Personal tax allowance and higher threshold frozen until April 2026

Draft P11D and working sheets published for software developers

HM Revenue and Customs (HMRC) have provided the final versions of P11D and P11D Working Sheets for tax year 2020 to 2021. They are only to be used by software developers to assist with development of their payroll software. PAYE draft forms: P11D and P11D Working Sheets (2020 to 2021) Documents P11D Expenses and benefits … Continue reading Draft P11D and working sheets published for software developers

Payroll Question Time: The Budget 2021 – Friday 5th March | 2:00pm – 3:30pm

Join the Payroll and HR community at the SD Worx monthly, online interactive discussion. With one of the most eagerly anticipated Budgets set to be published on 3rd March 2021, our regular expert panel will be discussing the choices and changes set out by Chancellor Rishi Sunak. We’ll be interpreting how they impact businesses in … Continue reading Payroll Question Time: The Budget 2021 – Friday 5th March | 2:00pm – 3:30pm

HMRC Talking Points

Dear @PAYadvice, HMRC's regular Talking Points provide information, guidance and tips to help you to understand tax issues.  We have more Talking Points webinars coming up. There are a limited number of spaces, so save your place now. Penalties for enablers of defeated tax avoidance: This webinar gives an overview of the penalties for enablers of … Continue reading HMRC Talking Points

2021/2022 New Starter Checklists available

GOV.UK have published the new adjusted HMRC ‘New Starter Checklist’. Some years ago these were referenced as P46. These have been adjusted to combine the student loan and postgraduate loans information requests into two questions 9 and 10, and incorporate the new Scottish Student Loan Plan 4 which commences collection from pay from 6th April … Continue reading 2021/2022 New Starter Checklists available

File tax returns now to prevent penalties

Self Assessment taxpayers have less than one week to submit their late tax returns to prevent a £100 penalty. While 10.7 million taxpayers filed their return by 31st January 2021, more than 1.5 million taxpayers missed this deadline and are still to file their tax return. They are accruing interest on unpaid tax liabilities but … Continue reading File tax returns now to prevent penalties

Parliamentary question – Directors Income Support Scheme response

HM Treasury responded to a question on COVID-19 assistance for Directors on 22nd February 2021 The question: To ask the Chancellor of the Exchequer, what steps he is taking to progress a directors’ income support scheme package for directors of limited companies? The response was made by Treasury minister Jesse Norman: The Government always welcomes … Continue reading Parliamentary question – Directors Income Support Scheme response

HMRC issue the 2021/2022 further guidance

The HMRC have update their employer guidance CWG2, CWG5 and also the guide to gross-up where employer pay the tax and NICs on expenses and benefits. CWG2 further guide to PAYE and National Insurance HMRC have issued the updated CWG2 for the 2021/2022 tax year (for the tax year which commences from 6th April 2021). … Continue reading HMRC issue the 2021/2022 further guidance

More help for Self Assessment taxpayers

HM Revenue and Customs announces Self Assessment taxpayers will not be charged the 5% late payment penalty if pay their tax or set up a payment plan by 1st April 2021. Self Assessment taxpayers will not be charged the 5% late payment penalty as long as they pay the tax due or set up a … Continue reading More help for Self Assessment taxpayers

Government to publish range of tax consultations and calls for evidence on 23 March

The government will publish a number of tax-related consultations and calls for evidence at the end of March. To allow for more transparency and scrutiny, documents and consultations that would traditionally be published at a Budget will now be published on 23rd March 2021. This is to allowen tax professionals to have an opportunity to … Continue reading Government to publish range of tax consultations and calls for evidence on 23 March

Isle of Man Budget 2021

No payroll surprises (yet) for the payroll changes from the Isle of Man Budget 2021 held Tuesday 16th February 2022. Income tax remains unchanged In the Isle of Man budget 2021 information, it is stated that the LEL (marked with * below) ‘that these figures will not be announced until after the UK Budget and … Continue reading Isle of Man Budget 2021

Off-Payroll working rules – HMRC Talking Points

Dear @PAYadvice, HMRC's regular Talking Points provide information, guidance and tips to help you to understand tax issues.  We have more Talking Points webinars coming up. There are a limited number of spaces, so save your place now. Off-payroll working rules from April 2021: Status Determinations and Disagreements: This webinar explains what Status Determination Statements (SDS) are, … Continue reading Off-Payroll working rules – HMRC Talking Points

Support for small businesses, landlords and leaseholders: government charges up the electric vehicle revolution with £50 million boost

Government announces financial boost to encourage electric vehicle use and launches consultation on improving the charging experience. electric vehicle charging schemes to be opened to small business, leaseholders and those in rented accommodation to accelerate electric vehicle (EV) uptakeworth up to £50 million, the updated schemes will also boost rural areas and the charity sector, … Continue reading Support for small businesses, landlords and leaseholders: government charges up the electric vehicle revolution with £50 million boost

Tax scammers are mimicking official numbers!

Scammers are using Royal Courts of Justice telephone numbers to demand tax payments. An increasing number of concerned individuals are contacting offices across the Royal Courts of Justice following emails or phone calls by scammers. The scammers allege that payment is owed to HMRC and that warrants for arrest have been issued. Scammers tell individuals … Continue reading Tax scammers are mimicking official numbers!

Give your loved one a tax break this Valentine’s Day

Married couples and people in civil partnerships could be eligible for Marriage Allowance and reduce their tax by up to £250 each year. HM Revenue and Customs (HMRC) is encouraging married couples and people in civil partnerships to sign up for a tax break this year. Marriage Allowance offers individuals the chance to transfer part … Continue reading Give your loved one a tax break this Valentine’s Day

HMRC end informal payrolling of benefit arrangements

In the February 2021 Employer Bulletin, HMRC have announced the end of informal payrolling arrangements. Informally payrolling HMRC state that ‘The small number of employers who informally payroll benefits must now... formally register for payrolling before the start of 2021 to 2022. [HMRC] will no longer accept informal arrangements’ For those who have not registered … Continue reading HMRC end informal payrolling of benefit arrangements

February 2021 Employer Bulletin published

HMRC have published their new format web delivered Employer Bulletin. It’s absolutely packed with important information which will aid payroll professionals in obtaining vital information and guidance. There are a plethora of important topics: Coronavirus Job Retention SchemeVAT deferral new payment scheme – opt-in from the end of February 2021VAT reverse charge for construction and … Continue reading February 2021 Employer Bulletin published

HMRC annual issue of P9 tax codes commences

HMRC have confirmed that electronic outputs of P9 tax codes to be applied for contractual payments dates from 6th April 2021, will be issued to employers or their electronic exchange agents who have their PAYE scheme set to ‘Yes’ for P9 bulk issue starting now and through until 19th February 2021. For employers where the … Continue reading HMRC annual issue of P9 tax codes commences

HMRC’s progress

HMRC, 100 Parliament Street by PSP(2019) How HM Revenue and Customs (HMRC) has performed during the first 9 months of tax year 2020 to 2021. The HMRC has published a news story charting their progress over the past 9 months. It has been a unique financial year as HMRC continues to be at the heart … Continue reading HMRC’s progress

Salary Sacrifice and furlough reference salary

HMRC have added further clarification to the furlough guidance in relation to salary sacrifice arrangements and the calculation of the reference salary for the Job Retention Scheme. They clarify that: You cannot include the following when calculating wages: payments made at the discretion of the employer or a client - where the employer or client … Continue reading Salary Sacrifice and furlough reference salary

The Van Benefit and Car and Van Fuel Benefit Order 2021

HM Treasury have issued the following statement to enable payroll software and employers to prepare for the new tax year commencing 6th April 2021. Statement 4th February 2021 Kemi Badenoch MP Exchequer Secretary (HM Treasury): The van benefit charge and fuel benefit charges for cars and vans will be uprated by the Consumer Price Index … Continue reading The Van Benefit and Car and Van Fuel Benefit Order 2021

P9X Tax Codes to use from 6th April 2021

HMRC have published (Tuesday 2nd February 2021) form P9X to be operated by employers from 6th April 2021. Employers use the P9X to find out which PAYE tax codes to change, how to change them and which codes to carry forward ready for a new tax year on 6th April. P9X(2021) Information on the payroll … Continue reading P9X Tax Codes to use from 6th April 2021

10.7 million tax returns filed by 31st January deadline

More than 10.7 million people have submitted their Self Assessment tax returns for the 2019 to 2020 tax year by the 31 January deadline. 12.1 million SA returns due10,743,387 returns received by 31 January - this includes Expected Returns, unsolicited returns and Late Registrations10,351,387 Expected Returns received by 31 January (85.25% of returns expected)392,000 unsolicited … Continue reading 10.7 million tax returns filed by 31st January deadline

Self Assessment 2021 – update

Dear @PAYadvice, On 25th January HMRC announced that Self Assessment customers will not receive a late filing penalty for their late tax return if they file online by 28‌‌ ‌February. This easement is for late filing penalties only. It does not affect any other tax obligations. A return received in February will be treated in … Continue reading Self Assessment 2021 – update

6th April 2021 tax changes confirmed

Following the Scottish budget, the HMRC have confirmed the tax allowances, rates and thresholds for 2021/2022 across the UK, these are effective from 6th April 2021. The tables below provide both the current and the new tax year values. Personal Allowance England and Northern Ireland Tax calculations for 6th April include changes announced by the … Continue reading 6th April 2021 tax changes confirmed

Scottish Income Tax Changes 2021

Income tax is the responsibility of the UK Government and is collected and managed by HMRC. However, the Scotland Act 2012 gave the Scottish Parliament the power to set a different rate of income tax in Scotland, known as the Scottish Rate of Income Tax (SRIT). This took effect from 6 April 2016. Scotland Act … Continue reading Scottish Income Tax Changes 2021

Changes to late filing penalty for 2019-20 Self Assessment returns

Dear @PAYadvice, Today HMRC has announced that Self Assessment customers will not receive a penalty for filing their 2019-20 tax return late, as long as they file online by 28‌‌th February. We are still encouraging customers who have not yet filed to do so by 31‌‌st January, if possible. Customers still need to pay their … Continue reading Changes to late filing penalty for 2019-20 Self Assessment returns

Home-working reaches highest levels since June 2020

The Office for National Statistics report ‘Coronavirus and the social impacts on Great Britain: 22 January 2021’ for the period 13th to 17th January 2021, shows the highest levels of home working since June 2020. “The proportion of working adults that have worked from home was at its highest since June 2020; 45% this week … Continue reading Home-working reaches highest levels since June 2020

HMRC – a word about scams

306,000 reports of phone scams HMRC indicate that they have received more than 306,000 reports about phone scams in the last year, up 47%. The department responded to over 846,000 public referrals of suspicious HMRC contact in total. Nearly 496,000 of these offered bogus tax rebates, as a way of stealing personal data. 496,000 reported … Continue reading HMRC – a word about scams

HMRC appoints new Director General for customer service

Myrtle Lloyd Newly-appointed Director General for Customer Service Group: Following an external recruitment process and approval from the Prime Minister, HM Revenue and Customs (HMRC) has announced that the new Director General for Customer Service Group will be Myrtle Lloyd. Myrtle is currently Chief Operating Officer at Her Majesty’s Passport Office, as well as Registrar … Continue reading HMRC appoints new Director General for customer service

Fascinating facts! Self-Assessment

HM Revenue and Customs shares some little-known facts about Self Assessment ahead of the 31 January 2021 deadline. Almost 100,000 people filed their tax returns last 6th April 2020, the first day of the tax year? With the 31st January 2021 deadline fast approaching, HM Revenue and Customs (HMRC) has shared some little-known facts about … Continue reading Fascinating facts! Self-Assessment

Preparing for changes to the off-payroll working rules (IR35) on 6 April 2021

There are less than 100 days until changes to the off-payroll working rules (IR35) come into effect on 6 April 2021. Changes to the off-payroll working rules (IR35) HMRC are providing support to help customers continue to prepare for the changes. Help and support for off-payroll working Those who should take action are: large and … Continue reading Preparing for changes to the off-payroll working rules (IR35) on 6 April 2021

Legislation Update 2021 for payroll

Featured

PAYadvice.UK have issued its 21.4 version of the PAYadvice Series Legislation Update 2021. This is a compilation of the confirmed changes due for 2021 for the UK, Channel Islands and the Isle of Man. The original version was made available on 7th January 2021. We believe that PAYadvice was the first organisation in the UK … Continue reading Legislation Update 2021 for payroll

Self Assessment deadline: less than a month to go

Around 55% of Self Assessment customers have already filed their return, and HMRC is urging others to do so by 31 January. According to HM Revenue and Customs, around 5.4 million Self Assessment filers have less than a month to complete their tax return. HMRC expects 12.1 million tax returns to be filed this year. … Continue reading Self Assessment deadline: less than a month to go

Tampon tax abolished 1st Jan 2021

With the UK leaving the EU, the ‘tampon tax’ has been abolished - with a zero rate of VAT applying to women’s sanitary products coming into effect 1st January 2021. tampon tax abolished - from 1st January 2021 VAT no longer applies to women’s sanitary productspart of wider government action to End Period Poverty which … Continue reading Tampon tax abolished 1st Jan 2021

2021-2022 Welsh Rate of Income Tax (WRIT) – No change

The Welsh Government draft budget has proposed a no change basis for Income Tax for the 2021/2022 tax year - Wales stays in alignment with England and Northern Ireland (sometime referee for Income Tax purposes as the rest of the UK or rUK. The following is extracted from the Welsh Government draft budget document at … Continue reading 2021-2022 Welsh Rate of Income Tax (WRIT) – No change

Statement: Tax exemptions: Employer-reimbursed coronavirus antigen tests and easement for employer-provided cycles exemption

Employer-reimbursed coronavirus antigen tests: Exemption from Income Tax and National Insurance contributions On 9 July 2020, the Government agreed to introduce an income tax exemption and National Insurance contributions (NICs) disregard to ensure that Coronavirus antigen testing provided to employees outside the Government’s national testing scheme will not attract tax and NICs liabilities. The Government … Continue reading Statement: Tax exemptions: Employer-reimbursed coronavirus antigen tests and easement for employer-provided cycles exemption

Budget 2021 – date announced

The Chancellor of the Exchequer, Rishi Sunak, has announced that the government will publish the Budget on Wednesday 3 March 2021. The Budget will set out the next phase of the plan to tackle the virus and protect jobs and will be published alongside the latest forecasts from the Office for Budget Responsibility (OBR). Opinion … Continue reading Budget 2021 – date announced

Employer reimbursed Coronavirus swab tests – Income tax exemption and National Insurance disregard

The Government is to introduce a temporary income tax exemption and National Insurance contributions (NICs) disregard, to ensure that employees who purchase their own Coronavirus swab tests, and are reimbursed by their employer, will not attract income tax and NICs liabilities in the current tax year. A Coronavirus swab test means a test which detects … Continue reading Employer reimbursed Coronavirus swab tests – Income tax exemption and National Insurance disregard

December 2020 HMRC Employer Bulletin

Dear @PAYadvice, Our Employer Bulletin (December 2020, Issue 87) includes a host of useful information including the extension to the Coronavirus Job Retention Scheme, VAT deferral and VAT reverse charge measures for the construction industry, Virtual Christmas Parties and Brexit transition updates. There’s also a timely reminder about how to report PAYE Real Time Information … Continue reading December 2020 HMRC Employer Bulletin

Failed tax avoidance – the IT contractors story

The IT contractor - Duncan’s story Duncan is a 55-year-old IT project manager. He’s married with two children and lives in London. When he started working as a contractor, he chose to use an umbrella company to help him manage his payroll admin. He found one through a comparison website. Duncan didn’t ask enough questions … Continue reading Failed tax avoidance – the IT contractors story

The nurses story – failed tax avoidance

HMRC have shared stories of contractors who have been caught up in tax avoidance schemes. They were promised higher take-home pay, lower tax bills and less paperwork. Instead, it cost them time, money and stress. Tanya is a single parent. She works as a critical care nurse at her local hospital. She found her job … Continue reading The nurses story – failed tax avoidance

Enforcement notice – advertising tax arrangement schemes

The Advertising Standards Authority @ASA_UK have published an enforcement notice to ensure businesses who advertise tax avoidance schemes are upfront about the risks involved This Enforcement Notice is jointly-issued with HMRC and provides guidance to promoters of tax arrangement schemes. The notice applies to websites which advertise a tax arrangement scheme to UK individuals or … Continue reading Enforcement notice – advertising tax arrangement schemes

Important – deadlines you need to be aware of for the Coronavirus Job Retention Scheme

Dear @PAYadvice, I’m writing to update you with the latest information on the Coronavirus Job Retention Scheme and the VAT Deferral New Payment Scheme – including actions you or your clients might need to take.  Coronavirus Job Retention Scheme (CJRS) The CJRS has been extended to 31‌‌‌ ‌‌March 2021 for all parts of the UK. … Continue reading Important – deadlines you need to be aware of for the Coronavirus Job Retention Scheme

Exemption for employer-provided coronavirus antigen tests #COVID19

A new temporary exemption is being introduced to make sure that employees who are given a relevant coronavirus antigen test by their employer, will not be liable to an Income Tax benefit in kind (BiKs) charge. The exemption applies to any relevant coronavirus antigen test provided by an employer, on or after 8 December 2020, … Continue reading Exemption for employer-provided coronavirus antigen tests #COVID19

Virtual Christmas staff events – tax exemption status confirmed

HM Revenue and Customers have indicated the following, guidance will be updated shortly. Having considered the scope of section 264 ITEPA 2003 (annual parties exemption), [HMRC] are pleased to confirm that the exemption will apply to the costs associated with virtual parties in the same way that it would for traditionally held, parties. Therefore, the … Continue reading Virtual Christmas staff events – tax exemption status confirmed

Disguised remuneration: settling your tax affairs #loancharge

HMRC have updated their guidance 19th November 2020 about paying what is owed to HMRC and added new information about providing settlement information. The #loancharge deadline passed on 30th September 2020. Guidance is now available for those who want to settle all their tax liabilities related to disguised remuneration and loans subject to the loan … Continue reading Disguised remuneration: settling your tax affairs #loancharge

Self Assessment filers warned about scammers posing as HMRC

Criminals are taking advantage of the Self Assessment deadline to panic customers into sharing their personal or financial details. As the HMRC issues thousands of SMS messages and emails as part of its annual Self Assessment tax return push, They are warning those completing their returns to take care to avoid being caught out by … Continue reading Self Assessment filers warned about scammers posing as HMRC

Raising standards for tax advice – Tackling promoters of tax avoidance

The Government has published (Thursday 12th November 2020) responses to calls for evidence in the market for tax advice and the tackling of promoters of tax avoidance. Raising standards for tax advice The Government is publishing a Summary of Responses and Next Steps from the call for evidence on raising standards in the market for … Continue reading Raising standards for tax advice – Tackling promoters of tax avoidance

Self Assessment deadline – 31st January 2021

HMRC are encouraging those required to complete Self Assessment to complete their tax return ahead of the deadline on 31st January 2021, to make sure they have time to pay their tax bill or set up a payment plan. Self Assessment customers can complete their Self Assessment via the Personal Tax Account, which provides an … Continue reading Self Assessment deadline – 31st January 2021

Off-Payroll working rules (IR35) – are you prepared?

Off-Payroll Working Rules (IR35): education and support to help prepare for April 2021 changes Medium or large-sized non-public sector organisations and contractors need to start to prepare for the changes to the off-payroll working rules. These changes were legislated for in the recent Finance Act and will come into effect on 6th April 2021. Changes … Continue reading Off-Payroll working rules (IR35) – are you prepared?

Fraud awareness – Mini Umbrella Company (MUC)

Please see message sent on behalf of the HMRC’s Fraud Investigation Service, Threat Response Unit. This article has been written to provide you with material to share with your membership / readership in relation to the Mini Umbrella Company Fraud risk. Every business which either places or uses temporary labour should be aware of the … Continue reading Fraud awareness – Mini Umbrella Company (MUC)

Self Employment Income Support Grant – claim from 14th December 2020

The Self-Employment Income Support Scheme Grant Extension provides support in the form of two grants, each for three month periods covering November 2020 to January 2021 and February 2021 to April 2021. The Government will provide a taxable grant covering 40% of average monthly trading profits, paid out in a single instalment covering 3 months’ … Continue reading Self Employment Income Support Grant – claim from 14th December 2020

Job Support Scheme Open – what is ‘reference salary’?

*Update* On Thursday 5th November 2030, the UK government confirmed a further extension of CJRS until the end of March 2021 the JSS introduction is delayed. Under JSS Open, employers can claim up to a maximum of £1,541.75 per month. Further guidance will set out how to work out reference salary for JSS Closed. Employers … Continue reading Job Support Scheme Open – what is ‘reference salary’?

Ready, steady, 100 days till the Self Assessment deadline

HMRC have issued a reminder to those who are required to submit a self assessment tax return. Dear @PAYadvice, There are just 100 days left to complete your tax return ahead of the 31‌‌‌ ‌January 2021 deadline. We know that this is a difficult time for everyone, but HMRC are here to help and support … Continue reading Ready, steady, 100 days till the Self Assessment deadline

Employee coming to work from abroad – agreement to operate PAYE on earning for UK work – Section 690

In light of #COVID19, HMRC has updated guidance on the operation of Section 690 agreements. Information about operating PAYE on an employee’s earnings for work they do in the UK, and how to amend an agreement already in place due to coronavirus (COVID-19) added. Agreement to operate PAYE on an employee’s earnings for UK work … Continue reading Employee coming to work from abroad – agreement to operate PAYE on earning for UK work – Section 690

Off-payroll workers – have you prepared?

With less than 6 months until new law comes into effect, has your business put in place plans to implement changes to the process of: Engagement of contractorsStatus classificationNotification of status to contractors and their intermediariesDispute processsRecord keepingPayroll and finance readinessOrganising appropriate PAYE schemeIdentifying amounts subject to tax and National InsuranceBudgeting for the employers National … Continue reading Off-payroll workers – have you prepared?

Payroll Question Time? – 6th November 2020

SD Worx are hosting its next edition of payroll question time on Friday 6th November 2020 at 2pm with its expert panel of Payroll and Employment law specialists. Have question and want to know more. Don’t know where to turn and are seeking guidance: Job Support SchemeJob Retention BonusCOVID-19 support measuresEmployment law latestLooking to the … Continue reading Payroll Question Time? – 6th November 2020

October 2020 HMRC Employer Bulletin

Dear @PAYadvice, [The] Employer Bulletin (October 2020, Issue 86) includes all of the latest COVID-19 updates to help [employers] continue to meet [their] payroll obligations to HMRC, including recent government announcements of additional support for businesses and employees. We’ve included the latest update on both the Coronavirus Job Retention Scheme and the Job Retention Bonus, … Continue reading October 2020 HMRC Employer Bulletin

54,800 customers claim tax relief for working from home

Since 6th April 2020, employers have been able to pay employees up to £6 a week or £26 a month tax-free to cover additional costs if they have had to work from home. HM Revenue and Customs (HMRC) has received more than 54,800 claims using a new online portal which allows workers to claim tax … Continue reading 54,800 customers claim tax relief for working from home

UPDATE – PAYE special arrangement for short term business visitors (STBV) appendix 8

The HMRC Internal PAYE manual has been updated 6th October 2020. In Budget 2018, the Chancellor announced that the Government was minded to widen eligibility for the STBV Pay As You Earn (PAYE) special arrangement, and extend its deadlines for reporting and paying tax with effect from 6 April 2020. This new arrangement, known as … Continue reading UPDATE – PAYE special arrangement for short term business visitors (STBV) appendix 8

Students warned of tax scam dangers

HMRC has written to universities, through Universities UK, asking them to help ensure their students know how to spot a scam. Students are being warned by HM Revenue and Customs (HMRC) that they could be targeted by a wave of tax scams. As new students start the academic year, they can be particularly vulnerable to … Continue reading Students warned of tax scam dangers

Self Assessment – enhanced payment plan changes

Self Assessment taxpayers can apply online for additional support to help spread the cost of their tax bill into monthly payments from 1st October 2020 without the need to call HM Revenue and Customs (HMRC). The online payment plan service can already be used to set up instalment arrangements for paying tax liabilities up to … Continue reading Self Assessment – enhanced payment plan changes

Self Assessment registration deadline

HM Revenue and Customs are reminding tax payers who are required to do their first self assessment return which will relate to their tax affair from 6th April 2019 through to 5th April 2020 to register online. If you’re filing online for the first time You must have received your Unique Taxpayer Reference (UTR), enrolled … Continue reading Self Assessment registration deadline

Employer provided flu jabs – taxable benefit? It depends!

Times continue to be very strange with the #COVID19 pandemic. The number of U.K. citizens who qualify for a free flu jab has increased and more employers are facilitating the provision of the flu jab to employees either in the workplace or by other means. So generally medical treatment provided and paid for by the … Continue reading Employer provided flu jabs – taxable benefit? It depends!