New guidance for employers

HMRC have issued the October 2017 Employer Bulletin which contains a number of articles relevant to employers on payroll related issues.

HMRC are advising that following the changes to the valuation of benefits in kind (BiK) where there is a cash option available, they will consult and then issue the necessary amendments to the PAYE Regulations. The guidance will also clarify the taxable amounts that need to be reported under Optional Remuneration and salary sacrifice arrangements.

Where a BiK is taken rather than the alternative cash option, the taxable value of the benefit is the higher of the cash foregone or the taxable value under the normal BiK rules. Transitional provisions apply for arrangements entered into before 6 April 2017.

The Bulletin also includes articles on:

  • Changes to Business Tax Account for employers, including new data on the Apprenticeship Levy and the introduction of monthly and annual statement pages
  • Data matters – ensuring RTI returns are submitted on or before the date the wages are paid, that the returns are accurate, cover all employees, including those that earn less than the National Insurance lower earnings limit
  • Paying HMRC at the Post Office - via transcash. This option will be withdrawn from 15 December 2017
  • Construction Industry Scheme - clarification of when CIS deductions should be reported via the Employer Payment Summary (EPS)
  • Student Loans - new income thresholds from April 2018 for Plan Type 1 and 2 loans
  • Apprenticeships benefit your business - includes links to help on finding apprenticeship training and recruiting an apprentice.

For help with payroll matters please get in touch.

More info: Employer Bulletin