Latest HMRC’s Employer Bulletin – focus on end-of-year tasks

Issue 70 of HMRC’s Employer Bulletin was published on 14 February 2018. This bi-monthly magazine gives information and reminders on a variety of topics of interest to employers and agents. 

The latest edition has a leading article on end-of-year reporting (see below). Among the other topics covered are:

  • the changes to tax-free childcare and what those changes mean for parents;
  • the Basic PAYE Tools new version release;
  • code numbers;
  • off-payroll rules (managed service companies);
  • PAYE settlement agreements (a new system);
  • termination payments (new rules, mainly from 6 April 2018);
  • Scottish income tax rates;
  • how to pay HMRC and recover PAYE overpayments; and
  • reporting car and fuel data for those who are payrolling car and fuel. 

End of year tasks for employers

The leading article is on payroll and benefits-in-kind (BiK) end-of-year tasks. HMRC sets out a number of do’s and don’ts. 

Don’t forget to put the end-of-year indicator on the last full payment submission (FPS) for the year. If the payroll software won’t allow this or the final FPS was sent without the indicator ticked then send an employer payment summary (EPS) with the end-of-year indicator ticked. 

Forms P60 must be given to employees by 31 May. 

FPS should be submitted before payday. The Tax Faculty would note that contrary to what is said in the bulletin, the date by which FPS should be filed and the date that should be cited on the FPS is the contractual payday, so, for example, if an employee whose contract provides that payday is the last day of the calendar month is paid on Maundy Thursday 29 March instead of Easter Saturday 31 March (a non-banking day), then the date to be cited on FPS and the latest filing date is the contractual date of 31 March. Citing the contractual date will also ensure that universal credit calculations are not messed up. 

If no employees are to be paid in the 6 March-5 April 2018 tax month then submit an EPS having ticked both the no payments made in this tax month indicator and the end-of-year indicator. Ticking the no payments made in this tax month indicator will stop HMRC from chasing the employer for an apparently missing FPS for that month. 

Employers who have registered to payroll certain BiK and have payrolled those BiK must not submit forms P11D for them (as this would double count the BiK for tax purposes) but must account for Class 1A NIC on form P11D(b). Non-payrolled BiK must be returned on forms P11D/P11D(b). Employers should provide employees by 31 May with details of payrolled BiK and P11D entries. The Tax Faculty would note that the obligation to provide end-of year-details of payrolled BiK to employees can be satisfied by including the requisite information on payslips. 

Forms P11D and P11D(b) must be filed with HMRC by 6 July. The Tax Faculty would note that Class 1A NIC on BiK must be paid by 19/22 July. 

Employers who have received a reminder from HMRC to submit forms P11D/ P11D(b) but did not provide any BiK during the year can either: 

submit a P11D(b) showing that they owe £0.00; HMRC will send the employer a return next year in case one is needed, or

complete the 2017-18 ‘Employer – No return of Class 1A’ form; HMRC will assume the employer does not need returns for future years and will stop sending reminders. The forms and weblink will be available from April 2018 – further details will be in the April 2018 bulletin. 

Employers intending to payroll BiK in 2018/19 onwards should register the BiK with HMRC before 5 April 2018 if they are payrolling those BiK for the first time. Employers who registered to payroll BiK in 2017/18 do not need to re-register the same BiK as the registration will carry forward automatically. 

Basic PAYE Tools

There was a new release of HMRC’s Basic PAYE Tools in December 2017. The old version will not work after February 2018. The CD ROM version is being discontinued owing to lack of demand but there is a link to guidance on downloading it from the internet. We would note that BPT can be useful even where payroll software is normally used, for example to submit an earlier year update (EYU) to amend HMRC’s records to bring them into line with the employer’s records. 

Get the Bulletin

Employer Bulletin is HMRC’s means of updating employers and agents and is issued bi-monthly. We recommend that interested parties subscribe to HMRC’s email alert system. This sends a notification whenever a new edition of Employer Bulletin is published. The alert system is no longer tied to a PAYE reference number, which means that non-employers can sign up to receive the alert. 

If you have comments on Employer Bulletin or suggestions of topics to cover, you can contact the editor at HMRC (details in the publication) or post a comment below.