Employer Bulletin: April 2022

14 April 2022

Here are the highlights payroll professionals should be aware of in the latest Employer Bulletin from HMRC. As always, if more information is required, please read the full bulletin for more information and links to relevant resources.

PAYE

  • PAYE Settlement Agreement (PSA) deadline – The deadline for applying for a PSA or amending an existing PSA is 5 July 2022.
  • The electronic payment date of 22 May 2022 falls on a Sunday. Funds will therefore need to clear into HMRC’s account by 20 May 2022.
  • Clarification on the classification of company cars or vans for benefits in kind purposes.
  • Expenses and benefits for tax year ending 5 April 2022. Details on the different ways employers can report their expenses and benefits, join payrolling for 2023/24, P11D deadline of 6 July 2022 and payment of Class 1A National Insurance (NI).
  • The official rate of interest for 2022/23 is 2%. This rate is to be used to calculate the income tax charge on the benefit of employment-related loans and taxable benefit of employer-provided living accommodation.
  • Student and postgraduate loans. A reminder of the generic notification process, rates for 2022/23 and not to deduct student loan for an employee who is subject to the off-payroll working rules.
  • Freeports employer NI relief, a reminder of the new relief and where exemptions to the 60% rule apply.
  • Claims process for the employers NI holiday for veterans is now live.
  • Employment Allowance from April 2022. How to claim and check eligibility.

Coronavirus (COVID-19) updates

  • Extended loss carry back. A reminder of the easement that allows companies to make claims for losses in previous accounting periods.
  • A reminder to declare coronavirus grants on company tax returns. This includes the Coronavirus Job Retention Scheme (CJRS) grants, Eat Out to Help Out payments and other support payment made by local authorities.
  • As of 5 April 2022, all employees must once again meet the ‘qualifying journeys’ criteria for Cycle to Work schemes. The easement meant that employees who joined an employer-provided cycling scheme on or before 20 December 2020 would not need to fulfil the ‘qualifying journeys’ condition.
  • Home-office expenses easement ended on 5 April 2022. During the pandemic, the easement allowed employers to reimburse employees for equipment purchased without attracting income tax and NI liabilities. Where employers provide the equipment to an employee the income tax and NI exemptions remain in place.
  • Also ending on 5 April 2022, the easement on non-UK residents stuck in the UK because of travel restriction not being taxed on earnings for duties performed in the UK.

Tax updates

  • VAT reverse charge for construction and building services. A reminder of the reverse charge, which was introduced in March 2021, its key aspects and how to check if a business is in scope.
  • Small businesses are invited to have their say on the Administrative Burdens Advisory Board 2022 survey. With the aim to make tax easier, quicker and simpler for smaller businesses.
  • From April 2022 all business, regardless of turnover, will be required to follow making tax digital rules.
  • Off-payroll working rules (IR35) now need to be applied by organisations that may have been exempt in 2021/22. HMRC gives an overview of the rules and a reminder to use the payroll software indicator and reported to HMRC in the FPS.
  • Tax avoidance schemes and promoters are now being names and shamed by HMRC. This is to support taxpayers avoid or leave tax avoidance schemes.
  • Hybrid working guidance within the Employment Income Manual has been updated to give additional clarity to the legislation.
  • Working from home tax relief guidance has been updated to make the eligibility criteria clearer. Due to the lifting of pandemic restrictions, HMRC expects claims to return to pre-pandemic levels.

General information and customer support

  • ACAS advice is now available via Facebook messenger.
  • Information on how to help employees understand child benefit entitlements.
  • Call for feedback on the UK central government complaint standards. The survey closed on 31 May 2022
     

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