06 December 2023
HM Revenue and Customs (HMRC) has published the latest Employer Bulletin: December 2023 today.
Key items from the bulletin are highlighted below, but the full version can be accessed here.
Reminder of changes to National Insurance contributions (NICs)
- HMRC has reminded employers to "take steps now to start work with your payroll software provider, and where applicable IT delivery partners, to get ready to implement the change to class 1 employee NICs that comes into effect from 6 January 2024. HMRC’s Basic PAYE Tools product will be updated to reflect this change. "
Pay as you earn (PAYE)
- You can now register to payroll your benefits from 6 April 2024. Don't forget that you can no longer get an 'informal payrolling' agreement, you must register if you wish to payroll benefits for the 2024/25 tax year. You can find out more on payrolling and reporting expenses and benefits in kind.
- National minimum wage (NMW) compliance support for employers is currently based on an employer's geographical location rather than business type. HMRC's aim is to raise awareness and increase knowledge of the complexities of the NMW legislation and support employers to get things right. If you're a member of the CIPP, we're running a number of think tanks with HMRC on this very topic - please look at our events pages to book on.
Tax updates and changes to guidance
- HMRC has worked alongside HM Treasury and the Department for Business and Trade, to publish new guidance for employment businesses who use umbrella companies to employer workers. This guidance will help employment businesses understand their legal responsibilities, protect their business from bad actors in their supply chain and support umbrella company workers. Reading the guidance could help employment businesses reduce their risk of non-compliance.
- HMRC has just published new Guidelines for Compliance — help to comply with the reformed off-payroll working rules (IR35). If you engage or supply contractors, we encourage you to read these guidelines to help you operate the off-payroll working rules correctly.
- Correction published in the Apprenticeship Levy Manual at page ALM07000. The changes clarify the meaning of 'pay bill', which is the total amount of earnings on which an employer is liable to pay class 1 secondary NICs.
General information
- If you 'pay by bank account' to HMRC, it has been confimed that HMRC Shipley is the correct bank account. Historically, these payments were sent to HMRC Cumbernauld, and some of HMRC's customers have queried this change. Using 'pay by bank account' prepopulates all payment details when you log in to your HMRC online account, making the process quicker and easier.
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.