HMRC: Employer bulletin October 2017

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

Benefits in Kind (BIKs) and Optional remuneration arrangements (OpRAs)

  • New rules for OpRAs were introduced from 6 April 2017 affecting salary sacrifice and other optional remuneration schemes.
    • Any new arrangements or arrangements varied after 5 April 2017 are under the new rules.
    • Where the new rules apply, the higher of the cash foregone (salary sacrificed) or taxable value under benefit in kind rules is taxable.
    • See Salary sacrifice schemes.
    • The P11Ds and P46(Car) forms will change to accommodate the new OpRAs rules.
    • No cash foregone figures will be required for RTI submissions.
  • New draft legislation relating to the voluntary payrolling of car benefits and how they will be reported will soon be released for consultation.

Business Tax Account

  • The staged rollout of the new Business Tax Account began in August
  • There were further changes in September and October, including new monthly and annual statement pages and visibility of the Apprenticeship Levy.

Real time information (RTI)

  • Late submissions of RTI can affect employees Universal Credits.
  • RTI submissions must be made on or before payday.
  • All employees, including those earning less than the lower earnings limits should be included.
  • The employee information, including full name, address, NI number, date of birth, should be kept up to date.
  • Leaving dates should be included if an employee leaves.
  • You should check that your submission has been successful ad re-send if needed.
  • See Real Time Information (RTI) index

Paying HMRC

  • The December payment deadline is 22nd December and if you pay by cheque payment must reach the Accounts Office by 19th December.
  • Bear this in mind if you close early, or if you don’t trust Christmas post.
  • See PAYE: paying HMRC.
  • Transcash service at the post office will be withdrawn from December 2017.

Construction Industry Scheme

  • If you are a limited company that does not have gross payment status, you should declare an entry for CIS deductions on the RTI Employment Payment Summary (EPS):
    • Report the total value of CIS deducted from income as a subcontractor during the year to date.
    • If also a contractor, do not include deductions from payments to your subcontractors. These are submitted on your CIS return.
    • File the EPS by the 19th of the month and offset CIS deducted from your income against PAYE you owe.
    • Non-limited companies should report CIS deductions on the Self-Assessment of Partnership Tax Return.
  • See CIS: Contractors and Subcontractors

Student loans

  • Student loan thresholds are increasing from 6 April 2018:
    • Plan 1 loans threshold will rise to £18,330 from £17,775.
    • Plan 2 loans will rise to £25,000 from £21,000.
  • When you receive an SL1 Student Loan start notice, it will show the plan so you can use the correct threshold.

Apprenticeship Levy

New support service launched for growing mid-sized businesses

  • Businesses with turnover of more than £10m or at least 20 employees can access a new dedicated tax support service.
  • It will offer the following:
    • Help with tax queries
    • Discuss reporting requirements, compliance and governance risks
    • Coordinate technical expertise from across HMRC
    • Support to get tax right first time.

Auto-enrolment

VAT

  • The VAT Retail Export Scheme (RES) which allows non-EU visitors to recover VAT on goods they buy in the UK and take home will be made into a digital system.

Employer Bulletin: October 2017

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

 

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