As a payroll bureau, keeping you informed about the latest updates from HMRC is our priority. The following information is based on the July 2024 issue of the Employer Bulletin. Here’s a comprehensive overview of the recent changes and guidelines that PAYE customers need to be aware of.
Changes to PAYE Tax Repayments: What You Need to Know
Effective from 31 May 2024, HMRC is changing the way it repays PAYE customers who are eligible for repayments. Previously, employees who received a tax calculation letter and did not claim their repayment online would automatically receive a cheque after 21 days. This will no longer be the case.
New Process: Customers must take action to request their repayment. You can claim your repayments online via the tax overpayments and underpayments service. If you prefer a cheque, you can request one through this process.
Operating Payroll: Real Time Information for Off-Payroll Working (IR35)
The off-payroll working rules (IR35) have been established to ensure that individuals working through intermediaries like Personal Service Companies pay similar Income Tax and National Insurance contributions as regular employees.
Key points include:
- Responsibility Shift: From April 2017, public sector organisations became responsible for determining IR35 status. From April 2021, this responsibility extended to medium and large-sized private sector organisations.
- Payroll Inclusion: Deemed employees must be added to payroll and reported via Real Time Information (RTI) with an off-payroll worker marker. This ensures accurate tax treatment and annual tax reconciliation.
- Loan Repayments: Deemed employers should not deduct student or postgraduate loan repayments; these are managed by the employees through self-assessment tax returns.
For more detailed guidance, refer to HMRC’s additional resources on operating PAYE within the off-payroll working rules.
Payroll Giving: Enhancing Your Corporate Social Responsibility
Payroll Giving allows employees to support charities directly from their salary with tax relief. Employers can set up a scheme by contacting an approved Payroll Giving agency.
Reporting Advances of Salary: New Legislative Requirements
From 6 April 2024, salary advances must be reported to HMRC’s RTI system along with the remainder of the salary on the contractual payday. This applies if:
- The salary is paid at regular intervals between one week and one month.
- The advance represents work already undertaken.
- The remaining salary is paid on the regular payday.
P11D and P11D(b) for Tax Year 2023 to 2024: Deadlines and Submission
By 6 July 2024, ensure you report any Class 1A National Insurance contributions owed for the tax year ending 5 April 2024. All submissions must be done online. Payments for Class 1A NICs must clear HMRC’s account by 22 July 2024.
Enhanced Self-Serve Time to Pay Service
HMRC has enhanced its online services to help PAYE and VAT customers pay their dues. If you are unable to pay on time, you may set up a payment plan online if:
- You owe £50,000 or less.
- Your debts are less than 5 years old.
- All submissions and returns are up to date.
For a complete list of eligibility criteria please refer to the July 2024 bulletin.
Keeping abreast of these updates ensures compliance and smooth operations within your payroll and tax responsibilities. If you have any questions or need assistance, feel free to contact us. We’re here to help you navigate these changes effectively.