Some Key Points from October 2021 Employers Bulletin

HMRC have released their Employers Bulletin October 2021. Here's a few of points that you should be aware of:

PAYE

The new health and social care levy will be introduced from April 2022. We shared this in a previous blog Health and Social Care Levy where we discussed some of the changes.

Business Tax Account

HMRC have highlighted that employers can connect their PAYE scheme to their Business Account and also make sure that HMRC have the correct details for you. At the bottom of the sign in screen, there is a video showing you how to connect your different services.

It's always good to check each month that HMRC have received the correct PAYE information from your Full Payment Submission and that they have correctly allocated any payments you have made.

Reporting PAYE information at Christmas.

Some employers pay their employees early for Christmas. If you do pay early, you must report the normal payment date on the Full Payment Summary.

For example: if you pay on the 17th December but your normal pay date is 31st December, you need to set the payment date as 31st December. You would send the FPS on or before the 31st December.

This protects your employee's eligibility for Universal Credit as reporting early could affect further entitlements.

Universal Credit and submitting your FPS on time

It is really important that a Full Payment Submission is made on or before they are paid BUT the date that is submitted is the date they are usually paid, even if you pay them earlier or later. For example, if pay day falls on a bank holiday, the payment to employees might be made earlier but the FPS should record the date they would have been paid if it were not a bank holiday. If they are always paid on the 25th, the FPS should show the 25th as pay date.

You can have a further read of our Shape guide on the different types of RTI Submissions.

This is just a few points and you should go and read the Employer Bulletin October 2021 for further information.