Employer Bulletin 89: April 2021

15 April 2021

HMRC has published the latest edition of the Employer Bulletin for April 2021.

This issue is absolutely jam packed full of news, and includes details relating to:

  • COVID-19 updates and information
  • UK transition
  • Consultation calls and responses
  • PAYE
  • Changes to guidance
  • Information for employees
  • Updates and information
  • Getting more information and sending feedback

A couple of the articles have been expanded on within this News Online piece, but payroll professionals are advised to read the Employer Bulletin in full where possible to ensure that they are up to date with all of the latest news that may impact their work.

New one-off £500 payment to support working households in receipt of tax credits

Employees who are in receipt of Tax Credits may be eligible for a one-off payment of £500, which is being offered to help households through the outbreak of coronavirus.

This payment is being made available in recognition of the fact that the temporary increase in Working Tax Credit of £1,045 per year, introduced at the beginning of the pandemic, ended as intended on 5 April 2021.

Employers are persuaded to inform their employees of this payment, as it is hoped that this will help to protect them from scams and prepare them for the changes to their regular Tax Credits payments.

The payment will be made automatically by no later than 23 April 2021, and claimants will be contacted by text message or letter to confirm that they will receive the payment. Employees are not required to contact HMRC or apply for the payment.

Employees could potentially be eligible if, on 2 March 2021, they were receiving either Working Tax Credit, or Child Tax Credit and if they were eligible for Working Tax Credit but their income was too high to get Working Tax Credit payments.

The one-off payment will not impact any other benefits, for example, Housing Benefit or Universal Credit, and individuals are not required to pay Income Tax or National Insurance (NI) on the amount of the payment. Nor do they have to declare it as income for Self-Assessment tax returns should they need to complete them.

Changes to amending PAYE Pay Settlement Agreements for coronavirus items

If employers have extra items to add to a PAYE Pay Settlement Agreement (PSA) then HMRC issue a new P626.

For the tax year 2020-21, where additional items relate solely to coronavirus a new P626 is not required. HMRC will add an appendix to the existing enduring agreement.

To add any coronavirus-related items, for example, taxi fares or car parking for staff who needed to work in the office, or computer equipment to enable staff to work from home to an existing PSA, email [email protected]

 


Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information. Download the CIPP's Payroll: Need to know - your guide to payroll legislation and reporting for the most up to date data.