HMRC have published their Employer Bulletin for April 2019. We summarise the key content for you, with links to our detailed guidance on the topics covered.

Some of the items included in this update were also included the April/May 2019 Agent update, rather than duplicate these we have linked to that update accordingly where appropriate.

Cash Allowances, Flexible Benefit Packages and Salary Sacrifice – a reminder

If during 2018/2019 you offered your employees any Benefit in Kind (BiK) with the option of a cash allowance, a flexible benefit package with a cash option or a salary sacrifice arrangement the rules changed in April 2017.

Those remaining move into the current rules on 6 April 2021.

See Salary sacrifice & Optional Remuneration schemes 

Childcare vouchers and directly-contracted childcare

All childcare voucher and directly-contracted childcare schemes, whether part of an OpRA or provided in addition to salary, closed to new entrants in early October 2018.

Employees who are already in schemes can continue to receive tax and NICs relief as long as:

See Tax-free childcare or childcare vouchers? 

HMRC’s criminal offences for failing to prevent the facilitation of tax evasion – what they are and what to do

See Agent update April/May 2019

The Official Rate of Interest remains at 2.50%

The Official Rate of Interest used to calculate the tax charge on beneficial loans and the taxable benefit of some employer-provided living accommodation remains at 2.5% for 2018/ 2019.

See Close company loans toolkit (loans to participators)

Apprenticeship levy funds transfer limit to increase in April 2019

See Agent update April/May 2019

Changes to the Earlier Year Update (EYU)

From April 2019 HMRC are running a trial aimed at simplifying the process for reporting corrections by extending the use of the Real Time Information (RTI) Full Payment Submission (FPS).

This means:

See RTI: Real Time Information for PAYE

Unpaid work trials and the National Minimum Wage

Are your clients using unpaid work trials as part of their recruitment process? If so, you must consider whether the minimum wage should be paid for these trials:

Reporting payroll when your normal payday falls on a non-banking day

It is essential that you report when you pay your employees on time and use the right payment date when doing so.

See RTI: Real Time Information for PAYE

Taking on new employees and confirming National Insurance numbers

Welsh rate of Income Tax and Scottish Income Tax

See Agent update April/May 2019

Reporting Expenses and Benefits in Kind for the tax year ending 5 April 2019

Reporting online

You need to submit a P11D(b) form if:

P11D completion

If you send your P11D as a list you must use the following format:

Amending a P11D or P11D(b)

Payrolled benefits

Adjusting the figure of Class 1A NICs due

See Payrolling of benefits

Paying Class 1A NICs

P11Ds and ‘Section 336’ claims

Disguised Remuneration Loan Charge and reporting requirements

See Agent update April/May 2019 and Disguised Remuneration loan charge 

Student Loans

Thresholds and rates:

From 6 April 2019 student loan thresholds and rates are:

Mandatory box for Student loan Plan 1, Plan 2 and PGL:

Employers: stay in the PAYE picture

You can check your liabilities and track your payment using the “PAYE for employers” section of the Business Tax Account On your payments history page you can see each individual payment recorded so you know we’ve received it.

Increase transparency, drive cultural change and improve employee engagement and retention in your workforce

On 22 November 2018, Government published a voluntary reporting framework to support employers with over 250 employees, to report information and data on disability, mental health and wellbeing in the workplace.

See DWP Voluntary reporting on disability, mental health and wellbeing

Diesel Supplement Company Car Tax Changes to meet Euro standard 6d

See Company cars

Construction Industry Scheme: Helpful reminders for Contractors and sub-contractors

Applying for Gross Payment Status; sub-contractors

To qualify for Gross Payment you must show HMRC that your business passes some tests.

You can apply for gross payment status when you first register for CIS or if you’re already registered you can apply online signing in to Government Gateway.

Appealing against a Penalty for a Late Return – Contractors

Using the online appeals service:

See CIS: Contractors and Sub-contractors 

Claim a refund of Construction Industry Scheme deductions if you’re a limited company

See Agent update: April /May 2019

Off-payroll working rules from April 2020:

The government are reforming the operation of the off-payroll working rules from April 2020 by extending the reforms introduced into the public sector in 2017 to all sectors, making organisations and agencies who take on contractors working through their own company responsible for ensuring they pay the right tax and National Insurance contributions.

HMRC are seeking views on the detailed operation of how the off-payroll working rules will work from April 2020, in a consultation opened on 5 March 2019.

See IR35

Throwing a party for your employees but not sure of tax or HMRC reporting implications?

See Staff parties and annual functions

See PAYE and settlement agreements 

Trivial Benefits

If an employer provides a benefit to its employees, it is not taxable if all the following conditions are satisfied:

Otherwise the benefit is taxed in the normal way.

See Trivial benefits 

High Income Child Benefit Charge

Employees with a total income of over £50,000 may have to pay a tax charge, known as the ‘High Income Child Benefit Charge’ if they or their partner get Child Benefit.

Employees earning over £50,000 should:

See High Income Child Benefit charge

Do your employees know how to apply for Tax-Free Childcare?

See Tax-Free Childcare

External link:

Employer Bulletin: April 2019