HMRC publishes Agent Update 84

20 May 2021

The latest Agent Update issue has been published by HMRC, and includes articles that discuss coronavirus, the UK transition, tax, HMRC agent services and the agent forum and engagement.

The update is aimed at tax agents and advisers with the purpose of providing them with the latest news and guidance.

A couple of the information pieces are included below, but you can read the Agent Update in full here.

Statutory Sick Pay Rebate Scheme still in operation

Within the Agent Update, there is confirmation that the Statutory Sick Pay Rebate Scheme for coronavirus-related sickness absence is still in operation.

This scheme provides financial support to employers classed as being either small or medium in size, who had fewer than 250 employees as of 28 February 2020 and who have paid Statutory Sick Pay (SSP) in relation to coronavirus-related absence. The repayment can cover up to a maximum of two weeks’ worth of the relevant rate of SSP.

Agents can claim on behalf of their clients.

Further information and guidance is available online.

Employers providing medical benefits

Employers who use the payrolling of benefits, or the legacy P11D process, to report medical benefits need to be aware of the fact that the 2020-21 taxable value has changed. Certain medical providers will make refunds to employers if services were not provided as initially specified.

The reportable value of the benefit is its cost, with the amount of any refund that related to that year deducted from it, irrespective of when it is received. Employers who are payrolling medical benefits may be required to amend the taxable value using an adjusted Full Payment Submission (FPS) and by reporting the correct value on their P11D(b) submission.

Employers utilising the legacy P11D process will need to ensure that they liaise with their medical benefit provider prior to the P11D deadline of 6 July and that they report the correct taxable value on both P11D submissions and on their P11D(b). This will ensure that they are not overtaxed.

 


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. Download the CIPP's Payroll: Need to know - your guide to payroll legislation and reporting for the most up to date data.