Employer Bulletin: June 2021

09 June 2021

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

As always, it contains a wealth of information of interest to payroll professionals and the work that they carry out, and the CIPP’s Policy team recommends that it is read in its entirety.

A couple of key articles have been plucked from the Bulletin, but the full version can be accessed here.

Maintenance release – Basic PAYE Tools

At the start of May 2021, a maintenance update to HMRC’s Basic PAYE Tools (BPT) was released in relation to tax year 202-122. Businesses using BPT must ensure that they update to, and use, version 21.1.

In order to update or to check if there are any updates that need to be actioned, the ‘check now’ option should be selected which is within the ‘update’ section of the settings in the top right-hand corner of the tool. HMRC recommends that the automatic update option is set to ‘yes’.

Anyone wishing to download and use BPT for the first time can do so here, where help on installing the software can also be found.

As of April 2022, BPT will no longer operate in a 32-bit environment, so computers and operating system software need to be checked to ensure that they run 64-bit applications, for use of BPT from that point. There is further guidance included within BPT under the ‘useful information’ section and also in the first time users guide.

GNS messages – payrolling benefits

HMRC will remind employers who have taxed benefits in kind via their payroll that they need to pay their Class 1A National Insurance (NI) contributions and complete a P11D(b) by the deadline of 6 July 2021.

From June 2021, HMRC will issue Generic Notification Service (GNS) messages through the Real Time Information (RTI) payroll system to send these reminders to businesses where data suggests that they are taxing benefits through their payroll system.

Employers are required to pay Class1A NI contributions on the majority of benefits that are taxed through payroll. These payments must be cleared in HMRC’s account by no later than 22 July 2021.

An introduction to HMRC’s ‘pay by bank account’

Employers will now be able to pay HMRC straight from their bank accounts, as opposed to using a debit or corporate credit card, which removes the requirement for them to enter card details.

The new process utilises Open Banking technology, which connects the employer to their online banking to allow them to authorise a secure payment, which will subsequently be sent through to HMRC.

Payment details are pre-populated, meaning that the correct payment reference number will be used, removing concerns about entering bank details and the correct payment reference number for employers.

This will be introduced to customers who use their online accounts first but will also be accessible to individuals who do not wish to use an online account and other regimes at some point in the future.

 


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