Do you complete expenses and benefits returns? Or do you complete online filing for employment related securities? If so, you have an important role to play in ensuring returns are submitted by 6 July 2022 and payments made on time. Note that HMRC has recently confirmed that it has decommissioned the non-digital end of year expenses and benefits service for small businesses by withdrawing the interactive PDF for completion of expenses and benefits returns.
However, businesses can use HMRC’s PAYE online service for this year’s returns. This service allows submissions for up to 500 employees and can be accessed using the same government gateway details.
Here’s a reminder of the key deadlines next month:-
- 6 July 2022 - deadline for submitting all 2021/22 P11D(b) and P11D forms - and the employee must receive their copy of the P11D;
- 6 July 2022 – deadline for online reporting of the 2021/22 annual return in respect of employment related securities;
- 19 July 2022 - deadline for non-electronic payment of Class 1A National Insurance Contributions (NIC) for 2021/22; and
- 22 July 2022 - deadline for electronic payment of Class 1A NIC for 2021/22.
To save on administration, don’t forget to consider PAYE Settlement Agreements, where relevant. For 2021/22 these must be agreed by 5 July 2022 with payments due by 22 October 2022 (19 October 2022 if paying by post).
From 6 July 2022 the Primary Threshold (“PT”) for NIC and Lower Profits Limit (“LPL”) for Class 4 NIC both increase to £12,570 from £9,880.
Because self-employed Class 4 NIC is calculated on an annual basis, the increase in the LPL applies from the start of 2022/23 but with an annualised threshold, so that the effect is equivalent across the tax year to those who are employed and paid on a weekly or monthly basis. This means the LPL is £11,908 for 2022/23 tax year which is equivalent to 13 weeks of the threshold at £9,880 and 39 weeks at £12,570, reflecting the position for employees.