On 04 December, HMRC published their latest Employer Bulletin.
We highlight the payroll issues that are covered in December 2024’s edition:
- The first section covers the employer National Insurance and Employment Allowance changes announced at the October 2024 UK Budget. It does not link to another section in the Bulletin which talks about HMRC’s updated guidance on connection for both the Employment Allowance and the Apprenticeship Levy. Nor does it mention that the legislation to effect the changes to the Employment Allowance also removes the State Aid criteria, and December’s Wages Wednesday highlighted that the issue here is that payroll software developers have not been asked to remove these questions when making the claim via the Employer Payment Summary (EPS)
- Note that taking on seasonal staff over the Festive Season does not mean that an employer can ignore their workplace pension auto-enrolment responsibilities. The section on this points to guidance on The Pensions Regulator website
- October 2024’s Bulletin contained a section on how HMRC is developing improvements to support online claims for Construction Industry Scheme (CIS) repayments. December’s Bulletin advises that an improved version of the online repayment claim form is available which enables the upload of evidence to support the repayment claim, including payment and deductions statements and bank statements when requested by HMRC
- There is a section which confirms the October 2024 UK Budget announcement that the reporting of taxable expenses and benefits will be mandated from April 2026. This does not include beneficial loans or accommodation, though the employer can choose to put these values through the payroll on a voluntary basis
- The 2025/26 Student Loan annual thresholds are confirmed in the December 2024 Bulletin, though ICB will wait for the appropriate time to relay this information to members
- If you are running payroll and still receive paper notifications of tax codes and Student Loan notices, possibly you will want to move to paperless and the section ‘Go paperless with PAYE Online’ may be of interest
- The UK Budget in October 2024 also announced that HMRC’s Official Rate of Interest (ORI) will be reviewed every quarter rather than annually. The section ‘How this will affect employers’ details that a fluctuating ORI may affect the calculation of the taxable benefits for loans and accommodation
- There is also a section that contains guidance about Investment Zone employer National Insurance contributions relief. This is worthwhile reading if you or a client operates in a Special Tax Site (which includes Freeports). At the end of the section if the reminder that for RTI submissions from April 2025, the employer must populate the payroll system with a workplace postcode for every employee on a Special Tax Site category letter
- There is also a section that details how individuals have until 05 April 2025 to make Class 3 (voluntary) National Insurance payments going back to April 2006. Such payments may top-up their State Pension entitlement by filling in gaps in National Insurance history. ICB advises that the State Penson requires full history for 35 years, therefore, possibly, individuals will not want to make payments if they already have this number (as the State Pension will not increase)
For Bookkeepers
The Employer Bulletin is a good source of information if you have not been able to view the monthly ICB Wages Wednesdays. This webinar does relay the same information to members at the time it is relevant whilst explaining the implications for employers and agents.
