Employer Bulletin 6: March 2024

HMRC published another Employer Bulletin in March 2024, here is our curated version of the highlights of the bulletin with added useful links.

employer bulletin

Payroll changes

  • 5th April is ‘week 53’ for weekly payrolls. This creates a small tax liability for some employees. 
    • Plan 1: £24,990. 
    • Plan 2: £27,295.
    • Plan 4: £31,395. 
    • Postgraduate loan: £21,000. 

Paying HMRC PAYE

  • Quote your 113-character Accounts Office reference.
  • Add four numbers to the end of your reference to advise which month or quarter your payment is for, and the tax year.
  • The first two numbers is the tax year. For the 2024 to 2025 tax year the number is always 25. The last two numbers relate to the tax month or quarter, for example, 01 for April, 02 for May, 03 for June or for Quarter 1.
  • For the period 6 April to 5 May 2024, the final four digits will be 2501.
  • Further information from HMRC on Paying PAYE and payment allocations.

Variable direct debits

  • In October 2022 HMRC introduced a new Direct Debit option for PAYE. The service enables you to set up a variable Direct Debit instruction, which authorises HMRC to automatically collect payments due from your bank account, based on the amount in your return.

PAYE Settlement Agreements

High-Income Child Benefit Charge: time to claim benefit?

  • With an increase in the High-Income Child Benefit Charge threshold to £60,000 from 6 April 2024 and with a taper up to £80,000, some employees may be interested in claiming Child Benefit or restarting Child Benefit payments if they have previously opted out.
  • The charge is tapered, so if they, or their partner, earns between £60,000 and £80,000 it can still be worth their while financially to claim. Claims for Child Benefit can be made in the HMRC app or online and are automatically backdated for three months, or the date of birth of the child if later.

Form P11D/P11D(b)

  • The deadline for Reporting P11D expenses and benefits in kind and P11D(b) Class 1A National Insurance contributions is 6 July 2024.

  • Nothing to declare? 

    • If HMRC has asked you to submit a P11D(b) form and you have nothing to declare, you can tell us you do not owe any employers’ Class 1A National Insurance contributions by completing a no return of Class 1A National Insurance contributions form. Only use this declaration if HMRC has asked you to submit a P11D(b) and you have nothing to declare.

Paying your Class 1A National Insurance contributions

  • There is a specific reference you need to use to make your Class 1A National Insurance contributions payment. For the 2023 to 2024 tax year this is your normal Accounts Office reference plus the numbers 2413 at the end. Do not leave a space between any of the numbers. 
  • This is an example of the correct format, but use your own reference number — 123PA001234562413. 

Payrolling Benefits In Kind

  • Those employers who have yet to join Payrolling Benefits In Kind for 2024 to 2025 can register now to payroll your expenses and benefits from 6 April 2024. You need to register before the start of the tax year, if you register on or after 6 April 2024, you will be unable to start to payroll until 6 April 2025.
  • You will no longer need to submit a P11D form for each employee for whom you payroll benefits. Payrolling is quicker and easier... 
  • If you are already payrolling benefits, you may still have a Class 1A National Insurance contributions liability and you will still need to submit a P11D(b) form to tell us how much employer Class 1A National Insurance contributions you owe. You will also need to submit online P11D forms to show any benefits you paid that you did not payroll. You can find more information on Payrolling your employees' benefits and expenses. 
  • The 2025 to 2026 tax year will be the last year that we will accept P11Ds and P11D(b)s for annual reporting of BIKs in most cases. 

Expansion of PAYE benefits in kind to authorised agents 

From May 2024, agents will be able to register to use the payrolling benefits and expenses online service.

Provided the agent has the correct permission, they can use the payrolling benefits in kind (BIK) service to register or remove benefits and expenses to be payrolled in the next tax year. The benefit and expenses covered include:

  • Mileage and motoring.
  • Private medical.
  • Relocation expenses.

Agents will be able to register ready for payrolling from the start of the 2025 to 2026 tax year.

Company car tax calculator

Cars or vans?

  • Double cab pick-ups: following a policy change, HMRC has decided that these are vans and they are not going to be reclassified as cars, after all.

Calculators

The Virtual Tax Partner new Salary and dividends calculators are up and running.

Consultation: views needed

  • In April 2025 draft regulations will introduce new requirements for employers, company directors and the self-employed to provide improved data through the tax system. Interested stakeholders can email their views on the draft regulations to This email address is being protected from spambots. You need JavaScript enabled to view it..

NICs relief in Investment Zones

  • Employer National Insurance contributions is to be included in the wider Investment Zone initiative and a zero rate of secondary Class 1 National Insurance contributions on the earnings of eligible employees up to £25,000 per annum. This will apply to employers with business premises in an Investment Zone special tax site, where the conditions to claim the relief are met. 

Enterprise Management Incentives (EMI)

From 6 April 2024: 

  • The deadline for notifying an EMI option will be extended from 92 days following grant to the 6 July following the end of the tax year.
  • A further amendment will be made to provide that the 12-month enquiry window will run after 6 July following the end of the tax year in which the option was granted.

External links

HMRC Employer Bulletin March 2024