Deadlines & reporting
Effective now
For large employers, this will save paper and be better for the environment.
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If you already have an informal agreement with HMRC to payroll benefits for the 2022 to 2023 tax year, you can continue to submit P11Ds marked ‘Payrolled’.
However, you should plan to formalise this agreement as soon as possible. HMRC may no longer accept new informal arrangements.
If you have had an informal arrangement in place you must register now to payroll your benefits.
Employees may be able to get tax relief on expenses if employers haven't already reimbursed them. This includes things like:
Anyone can check if they're eligible to claim on GOV.UK and if they are, they can set up a Government Gateway user ID to access their personal tax account and claim online.
There are companies who will make a claim on an individual’s behalf. Their fees can be up to 50% of the refund and may also include an administration charge.
The benefit of applying to HMRC through GOV.UK is that individuals get to keep all the money they’re entitled to.
Introduced 3 October 2022
From 3 October 2022, employers’ PAYE customers can take advantage of a new variable Direct Debit payment plan.
If signed up to variable payment plan, the following charges will be collected on receipt of the returns to HMRC:
Full Payment Submission
Employer Payment Summary
Construction Industry Scheme
Apprenticeship Levy
Class 1A National Insurance
Earlier Year Update
The new variable Direct Debit payment plan service can be accessed through Pay employers’ PAYE or directly through the business tax account and the employers PAYE service.
Changes from 6 April 2022
If you need a different employer PAYE reference for different groups of employees, you must use the P350 form to make a formal election.
Prior to 6 April 2022, if you wanted to request a separate PAYE scheme an election had to be made before the beginning of the tax year for which the election was to take effect.
However, from 6 April 2022 a change was made to Income Tax (PAYE) Regulation 98 covering ‘Multiple PAYE Schemes’ to allow employers to elect during a tax year.
Under the new regulations an employer must make an election before the beginning of the tax month immediately preceding the tax month for which the election is to have effect.
E.g. If you want to make an election that takes effect from 6 May, you have to make the election before 6 April.
A late election will be treated as if it had been made in relation to the tax month immediately following the tax month for which the election was to have effect.
If an employer wants to cancel an election, notice of cancellation must be given before the beginning of the tax month for which the election is to be ceased. Cancellation of an election does not prevent the making of a new election for that or a later tax month.
An election which has not yet come into effect may be cancelled at any time before the beginning of the tax month for which it is to have effect.
Ongoing requirement
HMRC have devised the following list of common mistakes which can lead to an incorrect employer PAYE charge:
Re-using of payroll IDs
The following are examples of payroll issues that can be corrected by the submission of a further Full Payment Submission (FPS):
Forgetting to include payrolled benefits in kind
No leaving date included on an FPS
Including an employee who has left your employment
Not including all employees on an FPS
Forgetting to send an FPS
If you identify an issue with your 2021 to 2022 PAYE charge, and after you have checked your payments are correct, the quickest and easiest way to correct it is to submit a further FPS for the year showing your year-to-date figures.
HMRC are aware that not all software products are alike but where you have identified a problem you may need to correct the ‘in period’ figures for the week or month the error first occurred. This will then trigger a corrected Month 12 submission.
If you’re unsure how to do this there’s more information and guidance on correcting your FPS or Employer Payment Summary (EPS).
Read guidance now
Register before 6 April 2022
HMRC encourage employers to consider payrolling benefits and expenses they pay to staff.
If you sign up for payrolling now, your employees can pay the tax due on their benefits and expenses when they receive their pay in the tax year 2022 to 2023. You will then be able to show your employee how much tax they have paid for their benefits and expenses on their payslips.
Once you start payrolling you no longer need to submit P11D returns to HMRC for almost all benefits in kind.
You must register for payrolling on the HMRC website before 6 April 2022 to be ready for the 2022 to 2023 tax year.
Use the payrolling benefits and expenses online service to show you’re collecting tax on benefits and expenses through your payroll.
Click here
Find out more