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HMRC have published their Employer Bulletin for June 2022. We have summarised the key content for you, with links to our detailed guidance on the topics covered.

PAYE

Changes to HMRC webchat service

Increase in National Insurance thresholds

In their Spring Statement 2022, the government announced an increase in National Insurance Contribution (NIC) thresholds for the 2022-23 tax year.

The threshold changes will take effect from 6 July 2022, meaning employees will pay NICs on less of their income.

The lower profits limit for self-employed people also increases:

See Rates and allowances

Basic PAYE Tools: additional in-year release

An important update to the Basic PAYE Tools (BPT) will be released at the beginning of July 2022 to calculate the correct NIC deductions from 6 July 2022

Employers must install this new update and can do so by updating their Basic PAYE Tool settings now:

  1. Click on ‘Settings’ in the top right-hand corner of Basic PAYE Tool
  2. Set the automatic updates to ‘Yes’.

Check you are using the right PAYE reference

When making PAYE payments to HMRC, check your payment reference number. If you use the wrong reference your payment may not be recognised which can lead to penalties and charges even if you have paid on time.

Reporting PAYE in real-time

Following HMRC’s review of the risk-based approach to late filing PAYE and late payment penalties, they have confirmed that this approach will continue for 2022-23. As a result:

Late filing penalties

See Penalties: PAYE and late payment and Penalties: RTI (Real-Time Information) for PAYE

Reporting your payroll information accurately and on time

The payment date you report on your FPS should be on or before the date you pay your employees, not the payroll run date or another date from your payroll system, unless the normal payment date falls on a non-banking day (Saturday, Sunday or bank holiday).

When a regular payday falls on a non-banking day, for PAYE and NICs purposes the payment is treated as having been made on the regular payday, even though it is made on the:

This is also the date you should put on the FPS as the ‘payment date’.

It is important to check this and make any changes to your payroll software so that when you report, you use the correct payment date or you may receive a penalty.

See RTI: Real-Time Information for PAYE

Generic Notification Service electronic warning messages

These messages are used to notify you that you have not filed or paid on time and give you a chance to review your submission process to ensure things are correct in the future.

Messages will be sent to you either:

How to access Generic Notification Service electronic warning messages

Student and Postgraduate Loans

Off-Payroll Working

Student or Postgraduate (SL or PGL) loan deductions should not be taken for workers who are subject to the Off-Payroll Working rules

Start notifications

Stop notifications

Once the notifications have been actioned, they must be kept for three years. Do not return the notice to HMRC.

P11D and P11D(b) filing and payment deadlines

What you need to file

If you paid any benefits or non-exempt expenses, or if you payrolled any benefits, you need to file a P11D(b) to report any employer’s Class 1A NICs liability.

If you have not yet registered online to payroll company benefits, you may wish to do so now for the 2023-24 tax year.

You have not paid any expenses or benefits you only need to tell HMRC that you do not need to make a return if HMRC sent you a paper P11D(b), an electronic notice to file a P11D(b), or a reminder to file a P11D(b) letter.

See P11D: Reporting benefits and expenses and Payrolling of benefits

How to make sure you’ve filled everything in correctly: tips based on some of the most common mistakes:

See P11Ds: Employers' checklist & top tips

Where to send amendments or paper P11D and P11D(b):

P11D and P11D(b)
HM Revenue and Customs
BX9 1WE

Paying Class 1A National Insurance contributions due on 22 July 2022

Electronic payment for Class 1A NICs for the year ended 5 April 2022 must clear the HMRC account by 22 July 2022.

Employers providing medical benefits update

The April 2022 Employer Bulletin explained how refunds received from medical benefit providers should be reported for employers reporting Benefits in Kind by Payrolling or the P11D process.

Refunds for medical benefit provided under Optional remuneration arrangements (OpRA), should be dealt with as follows:

If you need to adjust the value of a benefit provided in 2020-21 or earlier and you:

If you need to adjust the value for medical benefits provided in 2021-22 and have already payrolled the amount, follow the advice on GOV.UK for correcting the taxable amount. If you have already filed your P11D and P11D(b), follow the above advice for 2020-21.

See Medical benefits and health checks and Salary sacrifice & optional remuneration schemes (OPRA)

Reporting expenses and benefits: company cars

Make sure you are correctly recording the car type, particularly for diesel cars.

See Company cars

Coronavirus (COVID-19) updates and information

Enterprise Management Incentive and Save As You Earn

See Employment-related securities: What’s New? March 2022 for more details.

Social security coordination with the EU: COVID-19 easement ending

During the pandemic, HMRC disregarded changes to individuals’ work locations caused solely by COVID-related restrictions when deciding whether NICs were due in the UK. This ends easement on 30 June 2022.

Tax updates and changes to guidance

When completing the first FPS for new starters:

Only use any tax code or previous pay or tax changes received directly from HMRC.

See PAYE: Starter checklist new employee 2022-23

Updated guidance on how tips, gratuities and service charges are taxed

In April 2022, HMRC published an update to the E24 guidance on tips, gratuities, service charges and troncs to reflect the shift towards customers paying tips electronically, including through digital apps.

Making a payment made electronically does not change the basic principles for deciding how tax is to be accounted for and whether a National Insurance liability arises.

See Tips, gratuities and troncs

Sign up now for Making Tax Digital for VAT

Making Tax Digital (MTD) has now been extended to all VAT-registered businesses across the UK, meaning they should now be using software to keep records digitally and submit tax returns to HMRC.

See Making Tax Digital: VAT (subscriber guide)

Election for a separate PAYE scheme: form P350

Employers may elect to have multiple employer PAYE references (schemes) for separate groups of employees, e.g. for wages and salaries or for separate branches of their organisation.

From 6 April 2022 a change has been made to Income Tax (PAYE) Regulation 98 covering ‘Multiple PAYE Schemes’ to allow employers to elect during a tax year.

Multi-factor authentication used on business tax account

As an additional security feature, HMRC has multi-factor authentication on Government Gateway accounts including the business tax account.

General information and customer support

Employers: make sure your contact details are up to date for The Pensions Regulator

The Pensions Regulator (TPR) writes to you as an employer to keep you up to date with the Auto-enrolment tasks you need to complete and when they need to be done by.

Ensure the Pensions Regulator has the most up-to-date contact information for you (postal address and email) so you can receive the relevant correspondence, by using the Pensions Regulator’s nominate a contact form.

Claiming tax relief on work expenses

The cost of living increase means it’s never been more important for your employees to claim tax relief on work-related expenses.

Some employees can get tax relief on expenses their employer has not reimbursed them for. This includes things like:

Employees can check they are eligible by using the eligibility checker. If they qualify they can claim using their Government Gateway account.

There are also other ways to make sure employees keep more cash in their pocket, such as Tax-Free Childcare, Marriage Allowance and Child Benefit. 

See Employee expenses 

Tax-Free Childcare: help for your employees

See Childcare: Employer provision

Getting more information and sending feedback

Make sure you are kept up to date with changes by signing up to receive HMRC email alerts.

You can also follow HMRC on Twitter @HMRCgovuk.

Send your feedback about this Employer Bulletin or articles you may wish to see by email to: This email address is being protected from spambots. You need JavaScript enabled to view it..

External link

Employer Bulletin: June 2022 


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