April 2019: Employer Bulletin


HMRC publishes their employer bulletin on a bi-monthly basis, with the intent of giving employers the latest information on issues which are likely to affect them.

Below are a few summaries of articles included in the employer bulletin:

 

Reporting Expenses and Benefits in Kind for the tax year ending 5th April 2019:

The deadline for reporting Expenses and Benefits in Kind for the tax year ended 5th April 2019 is 6th July 2019.

This involves the submission of a P11D, which provides a breakdown of unreported expenses and benefits on an employee-by-employee basis.

Form P11D(b) must also be submitted, which tells HMRC how much employer’s Class 1A NICs you need to pay on the above expenses and benefits. Class 1A NICs must be paid on expenses and benefits reported in form P11D, as well as those which were run through the company payroll.

If all employee benefits and expenses were payrolled, it is therefore probable that you will not need to submit a P11D, but will still need to submit a P11D(b).

Basic PAYE Tools

HMRC offer a free payroll software for businesses with fewer than 10 employees called “Basic PAYE Tools”.

A downloadable update was released at the end of March that adds support for the 2019 to 2020 tax year.

Disguised remuneration and the loan charge

Disguised remuneration schemes are tax avoidance arrangements which seek to avoid Income Tax and National Insurance contributions by paying users of the scheme in the form of loans.

As these loans were never intended to be repaid, they are no different to normal income and are therefore taxable.

HMRC are applying a loan charge to people who did not come forward to arrange settlement of their tax affairs before 5th April 2019.

To read the full document, follow the link below:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/794766/EmployerBulletinApril.pdf

For help with any of your accounting or business advisory needs, please contact Stack & Jones Accountants on 01869 277973 for a free 1-hour consultation.

Sources: gov.uk

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