Spring PAYE alert for Employers
HMRC have this week issued a press alert for national/regional and trade press outlets to help remind employers of the key PAYE changes coming up this spring. To read the news alert in full, see Spring PAYE alert for Employers.
Updated information and guidance on www.hmrc.gov.uk
HMRC have also now updated the help, information and guidance for completing Employer Annual Returns and for PAYE starter and leaver forms.
We recommend that employers in the process of filing their returns online (and particularly those filing for the first time) read the guidance on avoiding and correcting the most common errors.
Twitter for key employer information and updates
HMRC are also now sending key messages and reminders for employers via the micro blogging service Twitter. So for important information and updates, follow our tweets on Twitter @HMRCgovuk.
More information about our Twitter policy is available at www.hmrc.gov.uk/news/twitter.htm.
2010-11 P11Ds - important information for employers who have payrolled expenses and benefits
For any employers who have payrolled expenses and benefits we recommend you read the latest guidance on how to report this to HMRC and follow the process that fits your situation. You will find it here P11Ds and payrolling.
It is important you follow carefully our guidance on completing P11Ds so that we can process them correctly and avoid employees paying tax twice on their benefits; once through their salary and again through their code.
PAYE tolerances for 2010-11
A tolerance has been used since the introduction of PAYE to accommodate the rounding up and down that automatically happens when the tax tables are used to calculate weekly/monthly tax deductions.
We have applied a tolerance of £50 for at least the last two decades. This meant that when we checked the tax deducted for customers at the end of each tax year, we would not take any action in respect of underpayments of tax of less than £50.
In September 2010 it was announced that the tolerance would be temporarily increased to £300. This temporary increase covered the years 2007-08, 2008-09 and 2009-10 while we worked on the reconciliations for those years. Work to clear those years is largely complete, and we are now in a position to manage the EOY reconciliation for 2010-11 without any increased tolerance.
The tolerance for 2010-11 will revert to £50. This means that where an underpayment of tax of more than £49.99 arises for the year 2010-11, a tax calculation will be sent to the customer.
For many years we have not automatically issued repayments under £10 as the cost of processing and printing a relatively small repayment can cost more than the amount being refunded. We will continue to repay any amount claimed by a customer.
Technical Team
8 April 2011
