To claim CIS suffered the business must be a limited company operating within the construction industry. If the company isn’t a limited company deductions can’t be made via filing an EPS, but rather reported on a Self Assessment Tax Return.
From 1st April 2022 HMRC now require the Corporation Tax Unique Taxpayer Reference (CT UTR) or COTAX to be included in the EPS. If neither of these references are provided the EPS submission will fail, and the client will not be able to claim the CIS suffered.
If the company can’t locate their CT UTR, this can request this via HMRC online, following this link.
HMRC have released their latest bulletin, the first of 2022-23. As always a lot is covered and it’s worth reading to keep up to date with any changes, and also to serve as a reminder for previous changes made.
Going into a new tax year is always the busiest time in payroll, and 2022/23 is no different! There have been plenty of changes and updates to rates and thresholds, new schemes, old schemes updated and even some thresholds not changing! At Alderley Payroll Services we pride ourselves with being on top of all PAYE changes and helping guide our clients into the new tax year.
One of the bigger updates for the 2022/23 tax year, which was announced by Rishi Sunak late on, was the increase in the Primary Threshold from 6th July 2022. To re-cap, the Primary Threshold is the point at which employees start to pay employees NI on their earnings. From July the threshold is increasing to £12,570 for the tax year, thus bringing it inline with the personal allowance for 2022/23.
Various schemes for employers NI relief have been updated and a new scheme launched:
A notable continuation from 2021/22 is the freeze in personal allowance, sticking at £12,570/pa. There is also no change in the workplace pension earnings threshold.
Looking at some usual year on year changes, there is the increased NI thresholds and increases in the National Minimum Wage & National Living Wage. The table below outlines the new minimum wages.
23 and over
There are of course other changes which we haven’t mentioned, but with it being the busiest time of year in payroll we need to cut our blog post a little short so we can get back to doing what we do best…processing payrolls!
If you have any questions relating to the changes within PAYE for the 2022/23 tax year, or anything else relating to payroll and workplace pensions please feel free to get in touch!
The government has announced an increase in the NI Employment Allowanced from £4,000 to £5,000 from April 2022. The allowance enables entitled employers to reduce their NI liability and was first introduced in April 2014.
NI is also set to increase by 1.25 percentage points from April 2022. The increase in NI is to help fund NHS, health and social care.
The Coronavirus Statutory Sick Pay Rebate Scheme closes today, 17th March. The scheme was originally closed in September 2021 but was re-opened due to the Omicron variant. The deadline to make a claim doesn’t close until next week, 24th March.
As we are getting closer to the new tax year it is important to be prepared for the changes coming in, which includes increases in NMW & NLW.
The National Living Wage (for employees aged 23 and over) will increase from £8.91/hr to £9.50/hr. The NMW for 21–22-year-olds increases to £9.18/hr, 18-20 year olds to £6.83, under 18s to £4.81 and apprentice hourly rate goes to £4.81.
23 and over
It is worth keeping in mind the increase comes in from the next pay reference period after the increase.
The minimum wage increases on the 1st April.
An employee gets paid on the 10th of each month for work done between the 10th of the previous month to the 9th of the current month. The employee wouldn’t receive the new NMW until they are paid on the 10th May for earnings between 10th April – 9th May.
HMRC have released a new feature allowing companies to pay PAYE taxes using a QR code. By logging into your online account through the Government Gateway, on a desktop browser, you will be able to scan the QR code with your mobile and make the payment on your phone.
HMRC do make the point to watch out for scams. HMRC say they will never send a QR code to a customer, so please always be careful!