CWG2: further guide to PAYE and National Insurance contributions
24 February 2020
The CWG2: further guide to PAYE and National Insurance contributions has been updated for tax year 2020-21 and can be located here.
The guide has been updated to reflect the introduction of the Class 1A National Insurance contributions due on termination awards above £30,000 and on any sporting testimonial payments made by an independent Testimonial Committee that exceed £100,000, as they will be reportable in real time through the payroll, from 6 April 2020 onwards.
The guide also discusses updates to the Employment Allowance which will take effect from the new tax year, primarily that employers who had qualifying Class 1 Secondary National Insurance contributions liabilities of £100,000 or more in the previous tax year will no longer be able to claim. Employers will need to make a new claim for the Employment Allowance each tax year, as claims will no longer roll over to the next tax year automatically. In circumstances where employers claim the Employment Allowance and state aid rules apply to their business, they will receive a letter to confirm their claim. In instances where no letter is received, the advice is for employers to check their Generic Notification Service (GNS) messages, which will provide details as to why their claim has been rejected.
It is advisable for payroll professionals to familiarise themselves with the CWG2 guide as it covers how to deal with PAYE and National Insurance contributions in some less common situations, which means that it is an invaluable tool.
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