HMRC PAYE update 127

HMRC have provided a further informal update on PAYE related matters for sharing. The update covers Regional Employer National Insurance Contributions (NICs) Holiday for New Businesses, what to do if you mislay documents, and a review update of PAYE Payroll Pooling.

START OF HMRC UPDATE

Regional Employer National Insurance Contributions (NICs) Holiday for New Businesses

If you have successfully applied for the scheme and have employed someone during the 2011-12 tax year we should have received your NICs Holiday End of Year Return (form E92) by now. If you have not sent us the form please complete and send it immediately with supporting forms E89 (or equivalent) for each qualifying employee from whom you were entitled to withhold employer Class 1 NICs. Please return the forms in the envelope originally provided. If we do not receive the forms and you have not paid all the employer NICs shown on your P35 and P14s, your record may show that you have an underpayment which will be sent to our Debt Management Team to recover.

If you have mislaid any documents

Form E92 can be obtained by contacting the Employer Helpline on 08457 143 143 and Forms E89 can be completed and downloaded from our website at http://www.hmrc.gov.uk/forms/e89.pdf. These forms should be returned in an envelope addressed as follows to ensure your return is dealt with urgently:

  • (red dot) HMRC NICs Holiday Team
    Room BP 2102
    Benton Park View
    Long Benton
    NE98 1ZZ

NB. The red dot must be shown on the envelope to ensure that this return is dealt with promptly.

PAYE Payroll Pooling – Review Update

The informal review of PAYE Pooling (discussion paper published 24 October 2011 to the 15 December 2011) which looked at a possible change to the Pay As You Earn (PAYE) system to give closely connected employers the option of being treated as a single entity for PAYE purposes has concluded that no further work will be undertaken to introduce a legislative change during the introduction of PAYE in real time.

As a concession, HM Revenue & Customs (HMRC) will allow employers who currently have an informal agreement to pool their payrolls to continue with those arrangements until further notice. No new applications to pool payrolls will be accepted.

HMRC will continue to monitor the issues arising with PAYE Pooling with a view to reconsidering the benefits of regulatory change after RTI has been introduced.

Technical Team

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