Employer Bulletin: December 2021

08 December 2021

The bulletin contains a wealth of information of interest to payroll professionals and the work that they carry out, and the CIPP recommends that it is read in its entirety.

A couple of key items from the Bulletin are highlighted below, but the full version can be accessed here.

Health and Social Care Levy (H&SC)

HMRC has reminded employers that the H&SC levy will be introduced through a 1.25% increase on both employer and employee National Insurance Contributions (NIC) from April 2022. The bulletin confirms that employers are being asked to include the statement ‘1.25% uplift in NICs funds NHS, health & social care’ on payslips for the tax year 2022-23.

National Insurance holiday for employers of veterans

During tax year 2021-22 employers who recruited qualifying veterans have continued to pay full NICs through PAYE. Employers must continue to do so until April 2022. In April 2022, employers will be able to claim back NICs for relief through a revised full payment submission using the new National Insurance (NI) category letter ‘V’. If software does not support this process, employers can write to HMRC to request the relief. 

In tax year 2022-23 onwards, employers can use NI category letter ‘V’ to apply relief through real time information. For more information on NICs holiday for employers of veterans, check out the webcast in the policy hub in your ‘My CIPP’ area.

Reporting benefits and expenses in real-time

HMRC are encouraging employers to sign up and payroll expenses and benefits in real time for the tax year 2022-23. The deadline is 5 April 2022.

Preventing and correcting payroll errors

The December bulletin contains key information on how to prevent and correct payroll errors, including issues on re-using payroll IDs. The CIPP encourage you to review this information in full via the bulletin.

Reporting PAYE information in real time when payments are made early at Christmas

Paying early during the Christmas period can create problems for employees who are eligible for Universal Credit (UC). Employers must ensure that the FPS contains the normal (contractual) pay date, and not the early pay date to avoid impacting UC entitlement.

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.