HMRC: updated guidance and software

09 March 2023

HM Revenue and Customs (HMRC) has now updated the GOV.UK guidance.

Below are the key updates for this week:

  • guidance: ‘Find payroll software that is recognised by HMRC’ has been updated for three suppliers 

  • guidance: ‘Check if you're an employment intermediary’ has been updated. Details of the off-payroll working rules prior to April 2021 have been included where appropriate

  • guidance: PAYE manual updated

  • guidance: ‘Non-savings/non-dividend Income Tax liabilities for Scottish, Welsh and rest of the UK taxpayers’ has been updated. Latest table added for tax year 2020/21

  • guidance: ‘Non-savings/non-dividend Income Tax liabilities for taxpayers with residential postcode in Scotland, Wales and rest of the UK’ has been updated. Latest table added for tax year 2020/21

  • Making Tax Digital (MTD): on 19 December 2022, the government announced a longer period for self-employed individuals and landlords to prepare for MTD. From April 2026, self-employed individuals and landlords with a gross income of more than £50,000 will be required to keep digital records and submit returns using MTD-compatible software. Those with a gross income of between £30,000 and up to £50,000 will be required to do so from April 2027. Research was carried out in March and April 2022 and the report can be accessed here

  • P11D and P11D(b) update: as announced in the Employer Bulletin, from 6 April 2023 HMRC is amending legislation to mandate the submission of original P11D and P11D(b) returns online either via third party software or HMRC PAYE online service. Paper print/post versions of these forms will no longer be accepted on or after this date

From 6 April 2023, HMRC is amending legislation to mandate the electronic submission of amended P11D and P11D(b) returns. Paper print/post versions of these forms will no longer be accepted on or after this date

  • original P11D and P11D(b): there is no change for existing employers who already submit their original P11D and P11D(b) returns online either via third party software or HMRC PAYE online service

For those remaining employers who have continued to submit paper returns in previous years, from 6 April they will be required to submit their P11D and P11D(b) returns online either via third party software or HMRC PAYE online service. For employers who need to submit up to 500 P11D and P11D(b) returns, the free HMRC PAYE online service can be used

  • amended P11D and P11D(b): HMRC will publish and mandate an electronic version of the P11D and P11D(b) form accessible via GOV.UK, this will enable employers to submit amended forms electronically from 6 April 2023

Employers will be able to access a new electronic form within GOV.UK to submit any amended P11D and P11D(b) forms

What will happen if an employer submits a paper P11D/P11D(b) (original or amendment) from 6 April 2023? HMRC will reject the form on the basis that it has not be submitted in the prescribed manner. HMRC will notify the employer of the rejection and will be sign-posted to the correct process

  • guidance: Real Time Information (RTI) support for software developers updated (RTI recognition process published, see the 2023-24 RTI technical pack)

  • guidance: software developers: payroll test data 2023 to 2024 updated.


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