HMRC have published their Employer Bulletin for December 2020. We summarise the key content for you, with links to our detailed guidance on the topics covered. 

Extension to the Coronavirus Job Retention Scheme

What’s new in the support available?

Publishing employers’ information

See COVID-19: Coronavirus Job Retention Scheme (CJRS) from 1 November 2020

Job Retention Bonus and Job Support Scheme

See COVID-19: COVID-19: Job Support Scheme (JSS) - on hold and COVID-19: Job Retention Bonus - on hold

VAT Deferral

See COVID-19: VAT payments

VAT reverse charge for construction and building services

The key aspects are:

HMRC has begun running webinars for businesses, for which you can register here. If no dates are showing as available, the webinar recordings will be made available online.

See CIS: Construction Industry reverse charge

Statutory Sick Pay eligibility for those self-isolating or shielding due to coronavirus

See COVID-19: Government support tracker

Messages for employers who operate a childcare voucher scheme

If your employees receive childcare vouchers via salary sacrifice, check they aren’t better off financially on Tax-Free Childcare

Tax-Free Childcare Example 1: Family with children aged 2 and 6 years old

Tax-Free Childcare Example 2: Family with children aged 6 and 10 years old

Note: In these examples, it is assumed that a year’s worth of childcare is 48 weeks.

See Tax-Free Childcare and Childcare and childcare vouchers

Virtual Christmas Parties

See: COVID-19: the virtual office party and Staff parties and annual functions

Disguised remuneration settlements – 2020 terms

Disguised Remuneration Repayment Scheme 2020

See Disguised Remuneration Zone

Time is running out to get your business ready for Brexit transition

More support offered through the Customs Grant Scheme

HMRC has made changes to the Customs Grant Scheme to allow more people to access the funding and help ensure they are ready to trade with the EU after the transition period ends. For more information, see here

Merchandise in Baggage rules when travelling to and from the EU

If you are travelling abroad after 1 January 2021 for business purposes, there are some changes to rules you will need to be aware of when bringing commercial goods into and out of the UK.

Cash control rules when travelling to and from the EU

With effect from 1 January 2021, new requirements will come into force on the UK borders.

Guidance for employers on reporting PAYE information in real-time when payments are made early at Christmas

See PAYE RTI reporting: Christmas exception to the rules

Change of Payroll ID

If you engage or supply contractors, there are some important tax changes

See Personal Service Company (PSC) tax

Student and Postgraduate Loans: Occupational pension and Off-payroll working rules

Student or Postgraduate loan (PGL) deductions should not be deducted from the following:

Occupational pension payments

Payments subject to PAYE under the Off-Payroll Working rules

Scottish Student Loans

Starter Checklist

Tax avoidance: don’t get caught out

Mini Umbrella Company Fraud

What is Mini Umbrella Company Fraud?

How you can spot Mini Umbrella Company fraud and protect your business?

As the MUCs sit low down in the supply chain it may be challenging to spot them. HMRC advises businesses to remain vigilant, especially where the employer of the worker is not the Umbrella Company they may have a contract with.

It is important for businesses to consider the credibility of the supply, payment arrangements and other surrounding circumstances to help safeguard themselves from financial, operational and reputational risks. Guidance on undertaking robust due diligence can be found here: The supply chain due diligence principles

What is HMRC doing about Mini Umbrella Company fraud?

Reporting concerns

If you have concerns about a supplier or engager of labour or associated activities, contact the HMRC hotline on: 0800 788 887 (open 8am to 8pm every day). For more details see how to report fraud to HMRC. 

External link 

Employer Bulletin: December 2020