13 October 2021 
Julia Ascott, Employment Taxes Specialist
The latest HMRC Employer Bulletin has been released and it's a long one this month. If you don't have time to read the full version, we've summarised it here just for you.
All employees earning over £9,568 will pay the charge. HMRC uses examples of a basic rate taxpayer earning £24,100 will pay an extra £180 whilst a higher rate taxpayer earning £67,100 will pay an extra £715. Click here for more details on the levy
Reporting in ‘real time’ for early Christmas payments - there is a permanent easement for PAYE reporting if you pay your employees earlier than normal due to the Christmas break. You should continue to report the contractual payday as the payment date on the FPS in order to protect employees’ eligibility for Universal Credit (different payment dates may affect their entitlements) even if you pay them at an earlier date
PAYE Settlement Agreement – if you haven’t already submit your PSA calculation, HMRC recommends use of the PSA1 form. Payment of the PSA is due on 22 October. HMRC remind employers to use their PSA reference number when making the payment and NOT the PAYE Accounts Office reference
UK-Swiss Social security convention - an agreement has been reached between UK and Switzerland for social security purposes. Whilst the text of the agreement is available, a start date has yet to be confirmed
Coronavirus Job Retention Scheme - final claims were due by 14 October. If you have claimed too much you can tell & pay HMRC online or risk interest and penalties. If you haven’t claimed enough, you have until 28 October 2021 to tell HMRC. HMRC details the various support programs for employees you’re not able to bring back to work and helping your business grow
Universal Credit and the FPS - reminder for employers to enter the contractual payday on the FPS, even if you pay employees earlier or later, to avoid double monthly earnings being counted for Universal Credit. This follows a judgment issued by the Court of Appeal in November 2020
Student loans: FPS indicators - there have been instances of employers accidentally selecting ‘occupational pension’ or ‘off-payroll working’ indicators which has led to an inability to deduct student loans (student loans are not due on either). HMRC recommend to double check your payroll records and unselect these options if they are incorrect
Student loan refunds - to process student loan refunds, you will need to directly contact HMRC via phone or in writing with bank account details
Off-payroll working rules - HMRC set out the support available to employers and highlight theirAugust 2021 Employer Bulletin for guidance on contracted out services and statement of works
Business Tax Account - reminder for employers to check the details on their Business Tax Account is accurate and up to date
Reporting benefits and expenses digitally - HMRC encourages employers to consider payrolling of expenses and benefits and sets out some of the advantages. Most importantly, employers wanting to enter this arrangement must register with HMRC before the start of the tax year
VAT reverse charge for construction/building services - reminder of the new rules that were bought in on 1 March 2021
Voluntary disclosures of PAYE involving offshore matters – reminder of the guidance on how to make a voluntary disclosure, the meaning of ‘offshore matters’ and a 12 year assessment protocol to recover PAYE rather than the normal 6 tax years. HMRC includes some useful examples of when ‘offshore matters’ may result in PAYE compliance failures
Temporary worker guidance – HMRC has produced new guidance on the use of temporary workers highlighting the need for employers to undertake adequate due diligence on their supply chain, particularly where umbrella companies are involved. You can read further information in the recent BUFDG article
