HMRC have issued their Employer Bulletin for October 2015, and we have summarised all of the key content for you, including a number of misconceptions about RTI which HMRC have identified from feedback they have received from employers.
Reporting PAYE in real time
HMRC comments upon a number of misunderstandings and misconceptions about what reporting PAYE on or before paying employees actually means, with four examples as follows:
- Misconception 1: All employers with nine or fewer employees can report on a monthly basis
- This is not true for all micro employers: only those operating a PAYE scheme at 5 April 2014 with nine or fewer employees at 6 April 2015.
- This relaxation on the reporting rules for micro employers, allowing them to report their PAYE monthly rather than each time they pay their employees, comes to an end in April 2016.
- Misconception 2: RTI software won't allow weekly submissions to HMRC
- This is not the case.
- If the employer makes weekly payments to employees then RTI software should support weekly submissions.
- Employers should therefore make sure that they are using software which enables them to meet their reporting obligations.
- Misconception 3: You report your PAYE to HMRC at the same time as you pay HMRC
- This is not necessarily true.
- You must report your PAYE to HMRC on or before the date you pay your employees.
- Misconception 4: Delaying reporting PAYE means that you can delay paying HMRC
- This is not true.
- Delaying reporting PAYE can lead to a late filing penalty
- Delaying payments can lead to late payment penalties.
See Penalties: RTI (Real Time Information) for PAYE for our detailed guide to RTI reporting and penalties
See RTI: micro employers' exemption extended to April 2016 for more information about the temporary relaxation of the RTI requirements for employers with nine or fewer employees
Payrolling: report and deduct tax on Benefits in Kind in real time
All employee benefits except for Living accommodation, beneficial loans and credit vouchers or tokens can be included in the payroll from April 2016. Employers must register before 5 April 2016 to take advantage of this opportunity to reduce the administrative costs of preparing P11D forms.
See Employers: What's On - from April 2016 for more information on the voluntary payrolling of benefits
IR35 deadline for the year ending 5 April 2015
Intermediaries who used the IR35 concession to delay making their final return and payment for the tax year 5 April 2015 must submit accurate figures and pay any outstanding amounts by 31 January 2016. HMRC will not be sending out reminder letters.
See IR35 reporting concession for RTI for further information
Automatic enrolment
HMRC advise that it is now the turn of small and micro-employers to begin the process of implementing auto enrolment and urges them to visit the Pension Regulator's website to ensure that they are prepared. The web address is http://www.thepensionsregulator.gov.uk.
See Auto-enrolment: workplace pensions for our subscriber guide
Company car users can update details online
Company car users can now update their details online rather than phoning or writing to HMRC. The service can be used to amend, remove or add a car or car fuel benefit. Employees will have to verify their identity using details from their UK passport or driving licence and other financial information when using the service for the first time. The service can be found at the following web address: www.gov.uk/update-company-car-details
Employer Compensation for high levels of Statutory Sick Pay
Employers qualifying for compensation under the Percentage Threshold scheme in respect of periods up to 5 April 2014 must make their claim before 5 April 2016. Employers were entitled to reclaim some of the SSP paid to their employees before 5 April 2014 where the amount paid was higher than a set percentage of their Employers and Employees Class 1 NIC liability.
Scottish Rate of Income Tax
This will come into force from 6 April 2016 and the bulletin includes details of the potential impact on employee's PAYE coding notices.
See Scottish Income Tax for our guide to the introduction and impact of this new tax
Increase in National Minimum Wages (NMW)
The National minimum wage has increased with effect from 1 October 2015 and will increase again in April 2016
See National Minimum Wage: new rate from 1 Oct 2015 for details and links to historic rates
PAYE electronic payment weekend deadline
The November payment deadline, 22nd November, falls on a Sunday. HMRC advises that cleared funds should reach them by the previous Friday (20th November) to ensure that they are paid in time.
New Employees
A starter declaration should be completed by all new employees to make sure that PAYE codes are correctly issued. The Bulletin includes guidance as to what action employers should take if their employee does not have a P45.
Statutory leave and Pay
Eligible employees can now take statutory adoption leave from the first day of their employment, with rates of payment mirroring the rates for statutory maternity pay. The bulletin includes a reminder of those who can qualify for adoption leave and parental leave and time off to attend appointments.
Changes to HMRC bank accounts
HMRC are moving its accounts to Barclays from February 2016, but advises that most taxpayers paying their bills electronically will not be affected. Details will be issued at a later date prior to the changeover.
Employer Bulletin: October 2015
A link to the published Bulletin can be found here or accessed via HMRC's website www.gov.uk.
