HMRC’s December 2019 edition of their Employer Bulletin has now been released and as is commonplace, it contains information pertinent to upcoming changes or events and some detail reminding employers of their responsibilities.
Some of the key issues from the December issue which employers may be interested in considering are as follows.
Christmas Payment Date
In December 2018, HMRC announced a temporary easement on the reporting of PAYE in Real Time whereby employers would be allowed to report the contractual payment date rather than the actual pay date in cases where payments are made early. For example, where your normal monthly pay date is the 28th of the month but because of a Christmas shutdown this payment is brought forward to the 20th.
Following feedback from employers and the Department for Work and Pensions (DWP), HMRC have received approval to make this easement permanent. The bulletin also reminds employers that, as the deadline date (22nd) for paying liabilities across to HMRC falls on a weekend, the funds must be cleared in HMRC’s account by the 20th.
Post-Employment Notice Pay (PENP)
In the October 2019 edition of the employer bulletin, HMRC published an alternative calculation of PENP and the circumstances in which it could be used. These were:
HMRC’s intention was that the alternative calculation could be used in any case where the employee is paid by equal monthly instalments. The original wording has been viewed to be too restrictive and so therefore HMRC have updated their guidance (EIM13886) which is available here.
Other information includes, proposed changes that will impact Ultra Low Emission Vehicles from 6th April 2020, tips and advise on how to apply the Trivial Benefits exemption, what you need to do if in cases of business mergers or when there are changes of ownership, and the revised advisory fuel rates applicable from 1st December 2019.
The December 2019 bulletin can be downloaded from the link here.
