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 later this week by the 2021/22 filing deadline of Wednesday 6 July 2022 and payments are made on time later this month.
You are also reminded that HMRC has decommissioned the non-digital end of year expenses and benefits service for small businesses. 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 this 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.
Employees with electric cars provided by their employer which are also available for private use are advised to check their tax code to ensure HMRC has correctly processed the relevant benefit in kind as we are aware of errors when these vehicles are reported via HMRC’s online returns.
To save on administration, don’t forget to consider PAYE Settlement Agreements, where relevant. For 2021/22 these must be agreed by tomorrow, Tuesday 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 the Lower Profits Limit (“LPL”) for Class 4 NIC both increase to £12,570 from £9,880. A new calculator has recently been published to estimate how the NIC changes will affect employees.
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.