HMRC have updated their booklet CWG2, the ‘further guide to PAYE and National Insurance contributions’, a document we refer to in less common payroll situations.
The 2026/27 version was published on 18 February 2026 and this is the first update. It concerns two sections:
Section 4.6.6
This comes under the heading ‘Special types of employee’ and 4.6.6 needs to read where an employer has an employee who works both in the UK and overseas. The change is all to do with the type of employee an employer / authorised agent can ask HMRC for a direction on how to treat a payment for Income Tax purposes.
ICB suggests members also read HMRC’s guidance ‘Globally mobile employees and PAYE’ and ‘Tell HMRC that you'll operate PAYE on a proportion of an employee's income’ if this situation affects them.
Section 2.3
This section is all about the Income Tax and National Insurance treatment of statutory payments, for example, SSP and SMP.
The change made in the update makes the differential between the Statutory Parental Bereavement Pay (SPBP) regime that operates in Great Britain and the one that operates in Northern Ireland. ICB suggests members contact their software provider to find out how the product will cater for the differences in Leave and Pay from 06 April 2026.
For Bookkeepers
ICB welcomes the update for clarity so that we can identify the sections that have been updated.
As always, our advice to members is to ensure you are referring to the latest version of the CWG2 (dated 06 April 2026).
