Employer Bulletin – August 2020
12 August 2020
The latest edition of the Employer Bulletin has been released by HMRC and can be located here.
The Bulletin contains articles on a variety of topics, some coronavirus-related and some pieces that sit much more in the business as usual space. It is intended to give employers and agents a roundup of the latest information on topics and issues that may impact them.
Coronavirus Job Retention Scheme
There is a reminder in relation to the changes to the Coronavirus Job Retention Scheme (CJRS) that will take place over the course of the next few months, and also discussion of the Job Retention Bonus, and how businesses can prepare their records ahead of claiming the bonus.
The Pensions Regulator (TPR) reminds businesses that their workplace pension duties apply regardless of whether an employee is working or if they are furloughed, and also provides guidance on the calculation of normal pension contributions for any furloughed workers who are returning to work part-time. There is also discussion of how to proceed where salary sacrifice arrangement for pensions are in place.
As recently confirmed, legislation has been passed, which means that payments relating to the termination of employment (redundancy pay, notice pay and compensation for unfair dismissal) are paid at an employee’s normal pay and not at 80% of earnings under the CJRS.
PAYE Online service for reporting P11D, P11D(b) and P46 (car)
HMRC has confirmed that it is in the process of redesigning the PAYE Expenses and Benefits service, so that it is in line with Government Design Standards, meaning there will be more focus on the accessibility needs of users, in addition to providing a more user-centred experience. It is expected that it will be released the last quarter of 2020, and ahead of that, HMRC needs businesses that employ between 5 and 250 staff to take part in User Research. Any interested parties should contact email@example.com.
30 September 2020 – Deadline for reporting the disguised remuneration Loan Charge
The deadline for individuals to report the details of their loans, where they have outstanding disguised remuneration loans, subject to the Loan Charge, is 30 September 2020, which is fast approaching. There is an online form for affected individuals to complete on Gov.UK, and they should also declare the loan on their 2018-19 tax return. Anyone intending to spread their outstanding disguised remuneration loan balance evenly across tax years 2018-2019, 2019-2020 and 2020-2021 will also need to do so by the same deadline date, and using the same online form.
The April 2020 Bulletin explained what any employers must do in the event that they haven’t yet reported and accounted for the Loan Charge, or if there is a requirement to amend information previously submitted. This edition also advised employers of the changes made to the Loan Charge rules.
Certain voluntary payments made in disguised remuneration settlements can now be refunded, as a result of recommendations made in the Independent Loan Charge Review. This is on payments made on or after 16 March 2016 for loans made in unprotected years.
Anyone affected by the Loan Charge, and concerned that they may have difficulties in paying HMRC anything that is owed, should contact them in order to agree an affordable payment plan. Contact can be made either by phoning 03000 599110 or by emailing firstname.lastname@example.org.
Access the Bulletin here, to read many more articles that are of interest to payroll professionals.
The information in this article is accurate at the time of publication. For all the latest information, news and resources on how the COVID-19 pandemic is affecting payroll professions, visit our Coronavirus hub.