HMRC: Employer bulletin June 2017

HMRC have published their Employer Bulletin for June 2017. We summarise the key content for you, with links to our detailed guidance on the topics covered.

P11D and P11D(b) filing and payment deadlines

  • The deadline for P11Ds and P11D(b) is 6 July 2017
  • Class 1A NIC is payable by
  • If you’ve payrolled any benefits you need to:
    • Submit a P11D for any non-payrolled benefits.
    • Submit a P11D(b) for Class 1A NICs due on all benefits (including any payrolled ones)
    • Give your employees a letter telling them what you have payrolled.
  • You do not have to included payrolled benefits on P11Ds if you registered for payrolling benefits with HMRC before 6 April 2016
  • If you did not register, you must include the amount on the P11D but clearly specify that it was ‘payrolled’ on the form. You should register to continue to payroll benefits.
  • If you have received a P11D(b) in the post, an electronic notice or reminder letter to file but have nothing to report, tell HMRC here.

Construction Industry Scheme (CIS)

Apprenticeship Levy

A further reminder that this came in on 6 April 2017: 

  • 0.5% levy is payable for those with a paybill of more than £3million.
  • Where it applies reports must be made through the EPS by 14 days after the end of each tax month.
  • Once you start reporting your levy, you must continue to do so until the end of the tax year, even if your pay bill reduces mid-year and you no longer have any levy to pay.
  • You can see the amount due in your Business Tax Account, by accessing the Electronic PAYE (EPAYE) viewer.
  • You can use the online apprenticeship service to manage the setup of apprenticeships funding.
  • Up to 90% of apprenticeship training for non-levy paying employers is payable by the government.
  • For employers with fewer than 50 employees, up to 100% will be paid by the government.
  • See Apprenticeship Levy (employers' briefing).

PAYE Settlement Agreements (PSA) and Scottish Income Tax

  • Employers are reminded that Scottish tax bands are different to the rest of the UK for 2017/18.
  • PSAs require the employer to calculate the tax and Class 1B NIC payable to HMRC so an understanding of the different bands will be essential.
  • Individual who are residents of Scotland, they should ensure their home address details are up to date with HMRC.
  • See PAYE & Settlement Agreements .

Paying HMRC

  • The electronic payment deadline for PAYE is 22nd of the month following the end of the tax month / quarter.
  • Class 1A NIC on benefits and expenses reported on P11D(b) is payable on 22nd July 2017.
  • 22nd July 2017 falls on a Saturday: funds should clear HMRC’s account by the 21st unless a Faster Payment can be arranged to clear on the deadline.
  • Use your 13 character Accounts Office Reference followed by ‘1713’ to make your Class 1A NIC payment online.

Tax-free childcare

  • The new tax-free childcare began on 21 April for children under 4 and disabled children under 17.
  • For every £8 paid into the special account, the government will top it up by an additional £2, up to a maximum of £2,000 per child per year.
  • The childcare voucher scheme is open to new entrants until April 2018 and will remain open for those already using the scheme.
  • The government have provided a dedicated website www.childcarechoices.gov.uk with guidance and a childcare calculator.
  • If an employee wants to change from the voucher scheme to the tax-free childcare scheme they must provide the employer with a Childcare Account Notice (CAN).
  • The CAN must be provided to the employer within 90 days of opening the CAN.
  • If employers make payments direct to a parent’s childcare account, it must be treated as a normal salary payment, i.e. the amount that goes into the account is net of PAYE and NIC.
  • See Childcare and childcare vouchers.

Student loans – employer prompts

  • HMRC will issue reminders if an RTI payroll submission should have included a student loan deduction
  • A second reminder will be sent if deductions are due but not included on the second submission
  • On the third omission, HMRC may phone to ask for deductions to begin
  • You should look at form SL1 received from HMRC to check which student loan scheme applies
  • If you’re paying an occupational pension, you should ignore any Student Loan Generic Notification Service message as you do not have to make deductions
  • Public authorities with personal service company contractors should also ignore these, see our guide, Personal service company (PSC) tax.

GCSEs new grading

  • For employers assessing applicants for jobs, they should note that a new 9 to 1 grading scale is being introduced for GCSEs.
  • Not all GCSEs are changing at once.

Automatic enrolment

Employer Bulletin: June 2017

The published Bulletin can be found here or accessed via HMRC's website www.gov.uk.

 

 

 

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