Payroll Updates

More regular changes to PAYE codes 

From July 2017 HMRC will be using data from Real Time Information (RTI) filings to automatically adjust PAYE codings for employees during the year.  This should mean that more people will pay the correct amount of tax under PAYE during the year.  An explanation of the changes for employers and their employees can be found on the HMRC site here 

For the system to be effective, employers need to make their RTI filings on time and ensure that they are using the latest PAYE codes for their employees.  

Late reporting of Payroll information

HMRC have updated their guidance on late reporting of payroll information.  Provided it is not an annual scheme, there is no penalty for the first late filing in the year.  Full details are here

Call for Evidence on Employee Expenses

In March, HM Treasury (HMT) issued a Call for Evidence to understand in greater depth what expenses are typically being incurred by employees and which of those are being reimbursed by employers. 

Where business expenses such as business travel or subscriptions are not reimbursed by the employer, employees can obtain Income tax relief.  HMT notes that claims by employees for such relief have increased substantially over recent years. 

In addition to reporting to HMT the outcome of the joint ATT/CIOT survey of members’ views on the specific questions asked by HMT, the ATT response includes points we think should be considered in a wider review of this area.