16 February 2024
HM Revenue and Customs (HMRC) has published the latest Employer Bulletin: February 2024.
Key items from the latest bulletin are highlighted below, the full version is available here.
Pay as you earn (PAYE)
- Taxed award schemes (TAS) are used by third party companies that may be engaged to provide incentive awards to employees on behalf of their employer. Providers of such awards are required to use TAS to report and make payment to HMRC for the tax and class 1A National Insurance liability. The Incentive Award Unit deals with all aspects of a TAS. Any TAS awards given in the 2023/24 tax year must be agreed by 6 July 2024
- following the 2024 National Insurance contributions (NICs) rate changes, HMRC has sign posted help and guidance resources. For employers that were not able to update the NIC rates in time for the 6 January effective date and need to make corrections, there details on how to fix problems with running payroll available
- the Basic PAYE Tools (BPT) has been updated on 6 January 2024, to reflect the NIC rate changes. The next update will be released at the end of March, to support the new tax year. HMRC recommends that you check for updates and set the automatic update to ‘Yes’
- it is time to prepare for End of Year reporting. The last Full Payment Submission (FPS) or Employer Payment Summary (EPS) of the year, up to and including 5 April 2024 needs to include a final submission indicator. Prepare P60s and issue to employees by 31 May 2024
- informal payrolling of benefits ceased to accept any new informal arrangements from 6 April 2023. Anyone with an existing informal agreement will need to register to payroll benefits before 6 April 2024.
- further information on payrolling and reporting expenses and benefits in kind is available.
Tax updates and changes to guidance
- updates have been made to the Employment Income Manual guidance pages for termination payments. Pages that no longer apply have been archived and page EIM12820 has been added to clarify HMRC’s current position
- following the tax simplification announcement on 16 January 2024, HMRC confirms the mandating of payrolling expenses and benefits from April 2026. Plans are currently in development and HMRC welcomes stakeholder views and feedback on delivery proposals ahead of the implementation, “General feedback and suggestions relating to the proposals can be submitted to the mailbox [email protected]”.
General information and support
- guidance for employers on the changes to Paternity Leave and Pay. Guidance on reclaiming SPP payments is available.
- HMRC encourages the awareness of tax avoidance schemes, providing support and resources to recognise tax avoidance, get help to leave an avoidance scheme and report a suspicious scheme. Tax avoidance — don’t get caught out’ campaign has further information.
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