HMRC have published their Employer Bulletin for December 2018. We summarise the key content for you, with links to our detailed guidance on the topics covered.

Budget announcements

Company cars and vans: from 6 April 2019:

Company car tax emission regime:

Changes to the treatment of expenses for unpaid office-holders: from April 2020

Finance (No 3) Bill 2018-19 Measures

The following are subject to the Finance (No 3) Bill receiving Royal Assent, which is expected shortly. See Finance Act 2018: tax update and rolling planner

Beneficiaries of tax-exempt employer-provided pension benefits:

Employer-provided charging for electric vehicles:backdated to 6 April 2018

Changes to Optional Remuneration Arrangements (OpRA) rules for taxable cars and vans

New legislation applying from 6 April 2019 will:

Change to the income tax and NICs treatment of emergency vehicles available for private use:

These changes which apply from 6 April 2017:

Abolishing receipt checking requirement for benchmark scale rates from 6 April 2019:

Legislating overseas scale rates from 6 April 2019

Employers choosing to reimburse their staff for the cost of the EU Settled Status scheme:

Visa Costs being met by UK employers:

Under current rules migrants outside of the European Economic Area (EEA) or Switzerland who wish to come to the UK to take up employment need to apply for a visa.

Employer-provided living accommodation – the ‘customary’ test under s99(2) ITEPA 2003:

Welsh rates of Income Tax (WRIT)

Toolkits – helping to reduce errors

Basic PAYE Tools for 2019-2020

Off-payroll working in the private sector

From April 2020, where an individual is engaged by a medium or large-sized business and works through a company, the business will become responsible for assessing the individual’s employment status.

Company Car Tax

Diesel Supplement:

If you have registered to payroll the car and car fuel benefit charge in the 2019/2020 tax year for a Euro standard 6d compliant diesel car:

New entitlement to Parental Bereavement Leave and Pay

The Government is introducing a new workplace right to Parental Bereavement Leave and Pay for parents who lose a child under the age of 18, including those who suffer a stillbirth from 24 weeks of pregnancy. The commencement date will be 6 April 2020.               

Those who qualify will be entitled to:

Paying HMRC

HMRC are encouraging all customers to pay electronically by using Direct Debit, Online or telephone banking and Debit/Corporate Credit card online.                

Making payments to HMRC easier:

A green ‘pay now’ button will be added to the GOV.UK pay employers’ PAYE guidance page around 31 December 2018.

RTI payroll submissions

Incorrect and late RTI payroll submissions can lead to increased and unnecessary contact for employers from employees.

This can be avoided by:

Changes to Student Loans from 6 April 2019

From 6 April 2019 the thresholds for Student Loan Plan 1 and Plan 2 will increase to:

Deductions will remain the same at 9% for Plan 1 and Plan 2 loans.

Starter checklist:

Postgraduate Loans (PGL)

NMW: Top 10 mistakes

HMRC have listed the top ten mistakes employers make when paying the National Minimum Wage: 

  1. Failure to apply the annual minimum wage rate increase as they go up each year on 1 April.
  2. Missed birthdays as employees turn 18, 21 or 25 years old and move from one NMW rate to another.
  3. Paying the apprentice rate to somebody who isn’t actually an apprentice. Recognised apprentices must have an apprenticeship contract and undergo an element of structured training.
  4. Continuing to pay the apprentice rate for too long. The apprentice rate only applies to apprentices who are under the age of 19, or if aged 19 or over within the first year of their apprenticeship.
  5. Making wage deductions for items or expenses that are connected with the job. This could include, for example, safety clothing, uniforms, tools etc.
  6. Making wage deductions that are deemed to be for the employer’s “own use or benefit”. For example a Christmas club saving scheme. It doesn’t matter that the worker can choose to buy into the scheme and the employer doesn’t have to make a profit from it.
  7. Charging a worker more than the stated offset rate for living accommodation, currently £49 a week.
  8. Not paying for all the time worked such as time spent travelling, training or downtime at the employer’s disposal.
  9. Not paying for additional time worked such as time spent clearing security checks once a worker’s shift has finished.
  10. Including elements of pay that don’t count towards minimum wage such as tips and the premium element of pay associated with shift premium.

HMRC Taxes Helpline

The employer Helpline is no longer able to check tax codes are correct or reissue tax codes due to in year PAYE triggers. Calls to check tax codes or reissue tax codes should be made to the Taxes Helpline on 0300 200 3300.

Termination Payments and income from Sporting Testimonials

An update on UK traders EU Exit preparations

Earlier this month HMRC published their latest letter to UK traders that only trade with the EU to help them prepare in the event that the UK leaves the EU without a deal on 29 March 2019.

The letter advises these businesses on the three actions they must take to ensure they can continue to trade the day after the UK leaves, this includes registering for a UK Economic Operator Registration and Identification (EORI) number. The full letter can be read only on GOV.UK.

The government has opened the grant scheme to help support training and IT improvements for customs intermediaries and traders who complete, or intend to complete, customs declarations. Further information on these grants and who can apply is available on GOV.UK.

External Link:

Employer Bulletin December 2018