Guidance

April 2023 issue of the Employer Bulletin

Published 19 April 2023

Introduction

On the 15 March 2023, the Chancellor of the Exchequer, the Rt Hon Jeremy Hunt MP, made his Spring Budget announcements.

Headline tax measures announced include reforms to capital allowances, changes to pension allowances and a series of rate changes.

Information on all the measures announced can be found in the Budget Red Book. For an overview of all the tax legislation and rates announced, visit Spring Budget 2023.

In this edition we are raising awareness of the annual Tell ABAB survey, more details are available in the article, ‘Annual Tell ABAB survey gives small businesses a big voice in the tax system’. The Administrative Burdens Advisory Board (ABAB) is an independent body representing the interests of small businesses. They are keen to get customer feedback to support the reduction of tax-related administrative burdens.

Also, in this month’s edition there are important updates and information on:

PAYE (Pay As You Earn)

Tax updates and changes to guidance

General information and customer support

HMRC’s support for customers who need extra help

HMRC’s principles of support for customers who need extra help set out our commitment to support customers according to their needs and underpin the HMRC Charter.

Find out how to get help and the extra support available.

PAYE (Pay As You Earn)

Classification of company cars and vans for benefit in kind purposes

HMRC would like to raise awareness of how vehicles should be classified for benefit in kind purposes.

On 20 July 2020 the Court of Appeal handed down its decision in respect of appeals by HMRC and Coca-Cola European Partners Great Britain Ltd. The case considered 3 different vehicles and whether they should be classified as vans or cars.

The decision agreed with HMRC’s longstanding interpretation of the car benefits legislation, which is that for benefits purposes the ‘construction’ of a vehicle is that of the final product when it is made available to the employee, and the use to which a vehicle is put, is not relevant when considering the meaning of construction. The courts also explained that the correct approach was to determine what a vehicle was first and foremost suitable for. Only if the predominant suitability of the vehicles in question was for the conveyance of goods or burden, would it be accepted as a van. You should also bear in mind, the courts ruled that a multi-purpose vehicle can have no primary suitability at all.

You can read more guidance on helping employers determine the correct classification of a vehicle for benefit in kind purposes. This will be of particular importance to employers that need to report company vehicles on a P11D (for more information read the additional article ‘Reporting expenses and benefits for the tax year ending 5 April 2023’) prior to the filing date of 6 July 2023.

Employer PAYE Direct Debits and Time to Pay arrangements

As an employer, if you want to set up a new Direct Debit for employer PAYE, this needs to be done early to make sure the payment is made on 22nd of every month. For example, May 2023, employers would need to set up their Direct Debit by 10 May 2023, to make sure the money is collected on time.

As this timeframe is short, we are working to reduce that lead time.

If you have an Agent, they are unable to set up a Direct Debit on your behalf. You should log into your business tax account and, as long as you are enrolled in PAYE for employers, you will be able to do this yourself.

Generic notifications when a Direct Debit is in place

The due date for employer PAYE payments to HMRC is 22nd of every month but the Direct Debit is always collected shortly after the 22nd. This means that you might be told by us that your payment is late. This is not a penalty, but an advisory notice.

There are some cases where this message is sent by HMRC, even though a payment was made on time. We apologise for this and are looking at how we can stop it happening.

Time to Pay arrangement

If you are struggling to pay and have PAYE arrears, you may be able to set up a Time to Pay arrangement online. If you do not meet the criteria for the online arrangement, you will be asked to call HMRC and an adviser will discuss the options available. The main criteria for the online arrangements are:

• the PAYE debt has to be less than £15,000
• you must not have any other debts
• the Time to Pay arrangement must be set up within 35 days from the date the liability was due
• the debt must not include penalties or specified charges
• all returns must have been submitted

If you have an agent, they are unable to set up a Time to Pay arrangement on your behalf. You should log into your business tax account and, as long as you have PAYE for employer enrolment, you will be able to do this yourself.

Tax and National Insurance contributions for termination payments

HMRC is highlighting the rules around Income Tax and National Insurance contributions treatment of termination payments, to help customers get their tax right. A number of changes happened to these rules over the past 5 years including:

• the introduction of post-employment notice pay
• the removal of foreign service relief on termination payments to UK resident individuals
• clarification that the exemption for injury does not apply to injury to feelings
• alignment of the rules for Income Tax and National Insurance contributions

From 2018, post-employment notice pay was introduced to make sure non-contractual payments in lieu of notice are subject to tax and National Insurance contributions, the same as contractual and customary payments.

Prior to 2018, these payments would have been taxable, as falling within the scope of section 401 of Income Tax (Earnings and Pensions) Act (ITEPA) 2003. The amount within the termination payment calculated as post-employment notice pay is now chargeable to Income Tax and National Insurance contributions as general earnings, and no longer benefits from the £30,000 threshold available in section 403 of Income Tax (Earnings and Pensions) Act 2003.

In addition, changes to the rules on post-employment notice pay were introduced from 6 April 2021. These changes provide for an alternative method for the calculation of post-employment notice pay, where an employee’s pay period is defined in months, but their contractual notice period or post-employment notice period is not a whole number of months.

Non-resident individuals are now charged to UK tax as earnings on the post-employment notice pay, to the extent they would have worked during their notice period in the UK. Before this, the post-employment notice pay of non-UK resident employees from UK employments, was not subject to UK tax as earnings.

From 6 April 2018, the foreign service exemption is no longer available for payments and other benefits that fall within section 413 of Income Tax (Earnings and Pensions) Act 2003, if specific criteria are met. The exemption still applies if the individual is not a UK resident during the year of termination, or the individual is a seafarer and has sufficient seafaring service.

From 6 April 2020, a change in legislation introduced a Class 1A National Insurance contributions charge on qualifying termination payments above the £30,000 exemption for tax. For more details read about the changes to the Income Tax and National Insurance contributions treatment of termination payments.

Making sure the correct amount of tax is paid

To determine the correct tax treatment, you will need to identify what the payment is for. A termination payment may consist of different types of payments such as compensation for loss of office, payment in lieu of notice, damages, redundancy, holiday pay, retirement, illness or injury of an employee or payment for a restrictive covenant. These payments may be taxable as earnings under other provisions of Income Tax (Earnings and Pensions) Act 2003. EIM12810 — Termination payments and benefits: applying the legislation details how the legislation should be considered in a particular order.

If the termination payment is not taxable under the other provisions, it may be taxable as a termination payment under section 401 of Income Tax (Earnings and Pensions) Act 2003. For guidance on this, read EIM12800 — Termination payments and benefits. However, some payments such as those for an injury or illness or a payment of legal fees in respect of the termination may be excepted from tax.

For help in considering if there is a charge to tax and National Insurance, read about what you pay tax and National Insurance on.

If you have not paid the correct amount of tax and National Insurance, corrections can be made through a Full Payment Submission. Use the ‘Data item box’ (Class 1A year-to-date) for amendments to the Class 1A National Insurance contribution.

Student and postgraduate loans

Student and postgraduate loan generic notification service messages to employers

HMRC sends student and postgraduate loan generic notification service messages to employers as a reminder:

• to start taking student or postgraduate loan deductions, or both
• to stop taking student or postgraduate loan deductions, or both
• to use the correct plan type HMRC has provided
• not to take student or postgraduate loan deductions, or both for an employee who is subject to the off payroll working rules, or only has an occupational pension rather than a salary

It is important that you check the HMRC Online services for generic notification service messages, as this impacts your employee’s student and postgraduate loan repayments.

If action has not been taken from the online service messages, then HMRC may contact you either by telephone or post.

For more information about generic notification service messages read student loan and postgraduate loan repayment guidance for employers.

Student and postgraduate loan thresholds and rates from 6 April 2023

The 2023 to 2024 thresholds and rates for student and postgraduate loans were published in the February 2023 issue of the HMRC Employer Bulletin.

For more information on plan and loan types (including thresholds) read student loan and postgraduate loan repayment guidance for employers.

Employer PAYE charge queries

Every month HMRC creates a PAYE charge for all employers and pension providers. A small number of customers contact our employer helpline to tell us of a discrepancy. In most cases our advisors are able to explain and offer guidance on how to correct the problem.

Cases that need closer examination are referred to HMRC’s charge resolution team, as complex cases take longer to review. The team may contact you to discuss your account. If necessary, they will work with you to identify the issue and explain how it can be corrected.

HMRC has developed solutions to help analyse and resolve common issues. These work well, resolving the majority of discrepancies. However, the creation of duplicate employments for employees, where an extra employment record is created which is identical to an existing live or ceased employment, is still causing an issue.

This can affect:

• your PAYE tax bill in respect of tax, National Insurance contributions and student loan, leading to unnecessary debt collection activity
• accuracy of employee tax codes, resulting in an incorrect deduction of Income Tax
• PAYE, National Insurance contributions, student loan, Universal Credit processes and tax credit renewals

Avoiding duplicate employments

We are aware that different payroll solutions provide employers with different capability and levels of control, around the information on their payroll system. You should check with your software provider on the functionality available to you.

Recommendations (where you are able) — to avoid the creation of duplicate employments

When a new employee starts:

• avoid the need for more updates to an employee’s name, date of birth or gender, by making sure the starter notification and first Full Payment Submission include accurate personal details
• always provide consistent information for example, if the first Full Payment Submission includes William Smith, make sure this is the case on future Full Payment Submissions, rather than Bill or W Smith
• only include a start date and starter declaration on the first Full Payment Submission, you should not show the start date on any later Full Payment Submissions
• you do not need to report changes to start dates to HMRC, they should only be recorded on your payroll system if required

Payroll ID changes

Each employee should have a unique payroll ID. This is often known as employee number or employee payroll number, this will most likely appear on their payslip.

If you have an employee working for you who has more than one job, on different payrolls, they should have 2 or more employee numbers or employee payroll numbers.

HMRC appreciates that payroll software will often generate the employee numbers, it’s important you understand how your software generates payroll numbers.

You should always use unique employee numbers or employee payroll numbers.

Always use a different employee number or payroll number if employees have more than one employment at the same time in the PAYE scheme.

Where an employee leaves and is re-employed, you should:

• use a different employee number, do not re-use a previous employee number
• start their year-to-date payment information again as £0.00

Where your software generates employee numbers that you cannot override, you should:

• enter the previous ID into the ‘Old’ field
• enter the new ID into the ‘New’ field

You should:

• only set the payroll ID ‘change indicator’ when reporting payroll ID changes
• complete both the ‘Old’ and ‘New’ fields with the most recently used payroll ID, you do not need to include the original start date

Where you are unsure if the previous software included a payroll ID, always set the payroll ID ‘change indicator’ when reporting your new payroll ID.

If you need to change payroll software, guidance is available on how to find payroll software.

What to do when or after an employee leaves

When or after an employee leaves:

• if you submit a Full Payment Submission with a leaving date you should not submit another one, unless it is a correction such as to pay and deductions or a payment after leaving
• you should include the original date of leaving on a payment after leaving, or any corrections made after leaving
• the payment after leaving indicator only needs to be set where you have issued a P45 and have made another payment
• you should not submit duplicate or identical Full Payment Submissions reporting a payment after leaving, unless you have received a rejection notification for the original
• changes to leaving dates do not need to be reported to HMRC, they should only be recorded on your payroll system if required

Occupational pension and irregular payment fields

You should only set the ‘occupational pension’ indicator or complete the ‘Annual amount of occupational pension’ if you are paying a pension, leave the field blank, do not enter £0.00. You should set the ‘Irregular payment pattern’ indicator, for any employee who is paid infrequently.

Reporting expenses and benefits for the tax year ending 5 April 2023

In the February 2023 issue of the Employer Bulletin, we included summary information on the submission of P11D and P11D(b) returns to HMRC from 6 April 2023.

Submitting form P11D and P11D(b)

HMRC has changed legislation to mandate the submission of P11D and P11D(b) returns online through:

• PAYE Online for employers
• PAYE Online for Agents
• commercial software

We will no longer accept paper P11D and P11D(b) forms. This includes lists. For existing employers and agents who already submit P11D and P11D(b) returns online, there is no change. For remaining employers and agents who have submitted paper returns in previous years, from 6 April 2023, they will need to submit P11D and P11D(b) returns online. For employers and agents who need to submit up to 500 P11D and P11D(b) returns, the free HMRC PAYE online services can be used, for anything more, commercial software is required. For the 2022 to 2023 reporting year, the submission deadline is 6 July 2023.

If you make a mistake and need to submit a form P11D and P11D(b) amendment

Previously, where an amendment is required to the original P11D and P11D(b) return, employers and agents have submitted a paper return to HMRC. From 6 April 2023 we will no longer accept paper P11D or P11D(b) amendment forms and this includes lists.

We have published guidance on how to correct an error on a P11D or P11D(b), which will enable employers and agents to submit amended forms electronically from 6 April 2023.

No software changes are required, as this new electronic form is not part of the current PAYE online services.

Paper P11D or P11D(b) (original or amendment) after 6 April 2023

If an employer or agent submits a paper P11D or P11D(b) (original or amendment) after 6 April 2023:

• the form will be rejected on the basis that it has not be submitted to HMRC in the prescribed manner
• the employer or agent will be notified of the rejection and directed to the correct process

Payrolling expenses and benefits in kind

For those employers payrolling benefits in kind

Employers may still have a Class 1A National Insurance contributions liability and will still need to submit a P11D(b) to tell us how much employer Class 1A National Insurance contributions are owed. Employers will also need to submit a P11D to show any benefits paid that were not payrolled.

For employers who have yet to join payrolling benefits

Register for payrolling employee’s taxable benefits and expenses. From 6 April 2023 employers can register to payroll benefits for 2024 to 2025 reporting year. Employers will no longer need to submit a P11D for each employee for whom they payroll benefits; payrolling is quicker and easier. If you are a large employer, this will save paper and be better for the environment.

Informal payrolling

If you already had an informal agreement with HMRC to payroll benefits for 2022 to 2023 reporting year, you must submit your P11Ds online and tell HMRC in advance that you are sending electronic P11Ds using the ‘PAYE — notification of payrolled benefits’ form.

We will no longer accept informal payrolling arrangements, you should have registered to payroll for 2023 to 2024 reporting year by 5 April 2023.

If you have missed the deadline to register for 2023 to 2024 reporting year, you must revert to online filing of your P11Ds for the 2023 to 2024 reporting year.

Paying Class 1A National Insurance contributions — due 22 July 2023

Electronic payment for Class 1A National Insurance contributions declared on your P11D(b) return for the tax year ended 5 April 2023, must clear into the HMRC account by 22 July 2023.

Use the right payment reference when paying Class 1A National Insurance contributions

Make sure your payment is correctly allocated by providing the correct payment reference.

Use your 13-character accounts office reference followed by 2313.

Adding 2313 is important because 23 tells us the payment is for the tax year ended 5 April 2023 and 13 lets us know the payment is for Class 1A National Insurance contributions. The reference should have no gaps between the characters.

Pay employers’ Class 1A National Insurance by using the ‘Pay now’ button to select one of the secure payment methods, or find alternative ways to pay.

PAYE electronic payment deadline falls on a weekend

In April 2023 the electronic payment deadline of the 22nd falls on a Saturday. To make sure your payment for April reaches us on time, you need to have cleared funds in HMRC’s account by 21 April 2023, unless you pay by Faster Payments.

Remember that it’s your responsibility to make sure your payments are made on time and, if your payment is late, you may be charged a penalty.

Speak to your bank or building society well in advance of making your payment, to check your single transaction daily value limits and cut off times. You can then make sure you know when to initiate your payment, so we receive it on time.

Find out more about paying employers’ PAYE.

Update to ‘fix problems with payroll’ guidance and new process for overpayments of National Insurance contributions

As we enter the 2023 to 2024 tax year, we want to update employers on an addition to the fix problems with running payroll guidance.

In the February 2023 edition of the Employer Bulletin, we reminded employers that GOV.UK guidance had been updated to reflect the reduction in National Insurance contributions by 1.25 percentage points for employees, employers and the self-employed from 6 November 2022, for the rest of 2022 to 2023 tax year. We also advised that guidance to aid employers in fixing problems with payroll had been updated.

For the 2023 to 2024 tax year, employers should still correct overpaid National Insurance contributions and submit a revised Full Payment Submission as normal, to make the relevant corrections.

From May 2023, HMRC will publish further information and updates to ‘fix problems with running payroll’ guidance, which will include:

• how to submit a revised Full Payment Submission
• how to submit applications through PAYE online for employers
• a new process for employees or former employees, who have overpaid National Insurance and whose employer cannot correct this for them

Customers will be able to ask for their 2022 to 2023 National Insurance contributions to be checked for an overpayment. The customer will later get a written reply from us, explaining the outcome and receive a refund if one is due. We only expect this process to be needed in a small number of cases.

When these changes are made in May, we will email all employers on our database to alert them. Subscribe to HMRC employer update emails, if you do not currently receive them.

Tax updates and changes to guidance

The official rate of interest from 6 April 2023

Following our announcement in March, the official rate of interest increased from 2.00% to 2.25% on 6 April 2023.

The official rate of interest is used to calculate the Income Tax charge on the benefit of employment related loans and the taxable benefit of some employment related living accommodation.

This may affect you, if you provide employment related loans or living accommodation to your employees, as you will need to know the correct interest to apply when you calculate the value of any benefit for 2023 to 2024.

Additionally, the new rate means employees might have to pay tax on employment related loans or living accommodation, where they may not have previously.

Changes to VAT penalties for late filing or payments

HMRC has introduced new, fairer penalties for submitting or paying VAT late. This has replaced the default surcharge.

These changes apply to VAT periods starting on or after 1 January 2023 and apply to everyone who submits VAT Returns, including customers who submit nil or repayment returns.

We’ve also made changes to VAT interest charges, with the introduction of interest on late VAT payments and changes to the way we calculate repayments of VAT that we owe businesses.

To avoid being subject to penalties, businesses must submit and pay their VAT liabilities on time. If you are a quarterly filer, you may be subject to the new penalties from May 2023.

More information is available about changes to late VAT penalties and interest charges and stakeholder communication resources.

Guidelines for Compliance — help with VAT apportionment of consideration

Information relevant to businesses who sell any goods or services with different VAT liabilities for a single price, as part of a package or bundle.

The Guidelines for Compliance (number 2 in the series) on VAT apportionment of consideration was published 3 March 2023. This was published alongside Revenue and Customs Brief 2 (2023): VAT and value shifting consultation update. The Guidelines for Compliance collection page provides details of the background and scope.

It is particularly relevant for all VAT-registered businesses who make bundled supplies at different liabilities of VAT. The aim is to showcase the compliance risks associated with different approaches that businesses take, in achieving an appropriate valuation of the individual elements in the bundle.

Businesses misusing their till systems should come forward

HMRC is writing to businesses suspected of evading tax by misusing their tills.

Users of electronic sales suppression systems should come forward and disclose what they should have paid while misusing their tills.

Electronic sales suppression users will either have access to specialist software or will configure their electronic point of sale device in a specific way, that allows them to consciously hide true sales and the resulting tax that is due.

For those businesses who fail to reply, HMRC can open an enquiry or, make an assessment of what it believes the business owes. This will include interest and penalties, in the most serious cases or where businesses give false information, HMRC may open a criminal investigation.

Businesses can make a disclosure about misusing their till system.

If you have an agent speak to them if this applies to you.

If there is anything about your health or personal circumstances that may make it difficult for you to deal with this matter, call the helpline:

Telephone: 0300 322 9896
Monday to Thursday: 8:30am to 5pm
Friday: 8:30am to 4:30pm

Find out about call charges.

Off-payroll working rules (IR35) — engaging contractors

It has been 2 years since the off-payroll working rules (IR35) changed in the private and voluntary sectors.

We have recently updated our guidance on the rules, to make it clearer and easier to use for customers who need it.

Some client organisations may need to operate the off-payroll working rules for the first time, either because they have not previously engaged contractors, or because they operate in the private and voluntary sectors and have recently met the size conditions. You can check the off-payroll working topic page and the ESM10006 — off-payroll working legislation for whether the rules apply to you every year. This is particularly true if you have:

• become a newly formed business
• been bought by another organisation
• changed size over the last few years
• started to engage contractors

The rules have not changed for contractors working through their own limited company, often known as a personal service company, or other intermediary, who provide services to small client organisations in the private and voluntary sectors. Contractors in these circumstances are still responsible for considering and applying the off-payroll working rules, commonly known as IR35. Contractors may want to check that their client is a small organisation in the private or voluntary sectors. More information can be found in guidance for off-payroll working for intermediaries and contractors.

Keeping records

Clients who engage contractors need to keep detailed records of their engagements, including:

• the names and addresses of both the contractor and their intermediary
• employment status determinations they make, including the reasons for the determinations
• fees paid

Information can be found in the off-payroll guidance for clients.

More support

We are continuing to look for ways we can improve the support we offer to customers, to help them comply with these rules. We welcome any feedback on what additional support may be useful for you or the sector you work in. If you have any feedback email: offpayrollworking.legislation@hmrc.gov.uk.

Preparing for the new tax year basis — Income Tax Self Assessment

The rules HMRC uses to calculate sole traders’ and partners’ profits for Income Tax in a Self Assessment return, are changing for many businesses for 2023 to 2024 onwards. This change may affect the return that taxpayers must submit by 31 January 2025 and subsequent returns. Our basis period reform publication provides more information.

This change is not affected by the delay to the introduction of Making Tax Digital for Income Tax Self Assessment announced on the UK parliament website on 19 December 2022.

Only taxpayers with an accounting date other than 31 March or 5 April are affected by this reform.

Under the new rules, from April 2024, businesses will be taxed on profits for the tax year and not, as now, the profits for the accounting year ending within a tax year.

Tax year 2023 to 2024 — transition year

The tax year 2023 to 2024 is a ‘transition year’ in which self-employed businesses will move to the new way of calculating taxable profits for the tax year.

Businesses need to declare total profits from the end of their last accounting date in tax year 2022 to 2023, up to 5 April 2024. Profits generated over a longer period, will be taxable in the transition year.

The transition year 2023 to 2024 presents an opportunity (for businesses currently trading), regardless of accounting date, to use any overlap relief resulting from overlap profit, from when the business first started. By default, any remaining profit can be spread over 5 years.

As an example, if a business’s accounting date is 31 December 2023, they must also declare profits from 1 January 2023 to 5 April 2024 (15 months rather than 12), in their 2023 to 2024 tax return, which is due by 31 January 2025.

From 2023 to 2024 onwards, some businesses might have to use provisional figures on their returns. The government will relax its guidance to give businesses the normal amendment time limits to submit their final figures, if they have submitted provisional figures as part of their tax return.

Tax year 2024 to 2025, and future years

For tax year 2024 to 2025 and future years where accounting years are different from the tax year end, the taxable profits will be calculated, by apportioning the profits for the 2 accounting periods that straddle the tax year.

Accounting date changes

For businesses changing accounting dates in tax year 2021 to 2022, HMRC will be able to provide details of overlap relief figures or historic profit figures on request, if these figures are recorded in HMRC systems. Taxpayers should ring the HMRC Self Assessment helpline and agents should ring the agent dedicated line, if they need this information to complete a 2021 to 2022 tax return.

Where a business’s accounting date is changed in tax year 2022 to 2023, the current change of accounting date rules will apply.

Where a business decides to change its accounting date from tax year 2023 to 2024 onwards, these rules will not apply, and another change can be made, regardless of past changes.

Overlap relief requests

To make things easier for our customers, HMRC is developing an online form for submitting overlap relief requests and will make sure these requests are dealt with separately from general post. Alongside this online form, we are training more officers to deal with overlap relief queries and developing an internal tool to simplify collection of overlap relief information. This will help us provide continued support for requests made by post, telephone, and the new online form.

HMRC is planning to launch the online form and additional support in summer 2023.

Overlap relief information can only be provided if these figures are recorded in HMRC systems, taken from information submitted by taxpayers as part of previous tax returns. If this information has not been submitted in tax returns, HMRC will not be able to provide it.

When looking at a request for overlap relief information, we need business details to report the correct figures to the taxpayer. When submitting requests, HMRC will ask you to provide as much of the following information as possible:

• taxpayer name
• National Insurance number or Unique Taxpayer Reference
• name of business
• description of business
• whether this business is self-employment or part of a partnership
• if the business is part of a partnership, the partnership’s Unique Taxpayer Reference
• date of commencement of the self-employment business
• date of commencement as a partner in partnership
• most recent period of account or basis period the business used

Taxpayers looking to change accounting dates and use overlap relief in tax years 2022 to 2023 or 2023 to 2024, should wait until more information on the provision of overlap relief figures for these tax years is announced.

Understanding your obligations on right to work and National Minimum Wage

All employers in the UK have a responsibility to prevent illegal working and to comply with National Minimum Wage legislation.

To help you understand these obligations Home Office Immigration Enforcement and HMRC are hosting a webinar covering:

• right to work checks
• civil penalties and prosecutions
• how to report immigration crime
• who is a worker for National Minimum Wage purposes
• how to establish if someone is self-employed
• exemptions to minimum wage eligibility

Sign up for the understanding right to work and minimum wage eligibility webinar on 16 May 2023, where a panel of experts from both organisations will be on hand to answer questions.

Prepare for the Economic Crime Levy

HMRC has published information about the Economic Crime Levy.

The Economic Crime Levy was introduced in part 3 of the Finance Act 2022, as part of the government’s plan to develop a sustainable resourcing model for economic crime reform.

Published information includes who is liable and how those affected can register, submit returns and pay the levy. Payments must be made by 30 September each year, with first payments due 30 September 2023.

Economic Crime Levy online service

An online service is being designed to allow those liable for the levy to register and submit annual returns. We are seeking participants to test the service to help make sure the service design meets user needs. If you or someone you know are interested in helping HMRC test and build the service, contact: economiccrimelevyenquiries@hmrc.gov.uk.

General information and customer support

Annual ‘Tell ABAB’ survey gives small businesses a big voice in the tax system

The annual ‘Tell ABAB’ survey is now available to complete. Commissioned by an independent body, the Administrative Burdens Advisory Board, the survey provides crucial insight on the big issues faced by small businesses in the tax system.

The survey takes approximately 10 minutes to complete, and it will be open until 2 May 2023. Results from the survey will be published in the ‘Tell ABAB’ Report, which will be published on GOV.UK summer 2023.

The Administrative Burdens Advisory Board is passionate about listening to and understanding the needs of the small business community. Board members come from a range of businesses and professions, and their goal is to support HMRC to make the tax system quicker and simpler for small businesses.

The Administrative Burdens Advisory Board challenges HMRC on its performance, providing robust scrutiny against key initiatives such as, Making Tax Digital and improving customer experience. Their annual report, which is sent directly to Treasury ministers, reviews HMRC’s progress against Administrative Burdens Advisory Board priorities.

If you are one of the 5.7 million small businesses in the UK (including sole traders, self-employed, micro-businesses and organisations with fewer than 51 employees), then the survey is your opportunity to provide the Administrative Burdens Advisory Board with insight on the tax system which they can then use to support you.

Tax Administration Framework Review — simplifying and modernising HMRC’s Income Tax services through the tax administration framework

As announced at Spring Budget 2023, the government has published a discussion document exploring how HMRC can simplify and modernise HMRC’s Income Tax services, as part of its Tax Administration Framework Review.

This sets out our intention to increase digital uptake for some of our letters and forms, seeks views on improving PAYE processes and launches a review of the Income Tax Self Assessment criteria.

Anti-money laundering supervision — YouTube videos to help businesses

HMRC has launched 4 new anti-money laundering supervision video guides, to help customers get things right first time when registering with HMRC for money laundering supervision.

‘How do I register for anti-money laundering supervision?’, which explains:

• creating a Government Gateway account
• logging in with your government gateway user ID and password
• applying to register and completing each section
• adding information about your business
• completing a declaration
• paying the fees

‘When and how do I pay for anti-money laundering supervision?’, which explains:

• how to pay fees when you first apply to register
• when your annual supervision fee is due

‘How to pay your annual supervision fee or opt out of anti-money laundering supervision’, which explains:

• signing into your online account to pay your annual supervision fee
• how to deregister if you no longer need to be registered with HMRC under the money laundering regulations

‘What fees do I need to pay for anti-money laundering supervision?’, which explains:

• what fees you need to pay
• registration fee
• fit and proper test or approval process fee
• annual fee for your premises

HTML format of Employer Bulletin

Since September 2020, material published on GOV.UK or other public sector websites must meet accessibility standards. This is so they can be used by as many people as possible, this includes those with:

• impaired vision
• motor difficulties
• cognitive impairments or learning disabilities
• deafness or impaired hearing

The contents page with the links to articles is now down the left hand side, and the page is fully scrollable. Articles have been put into categories under a heading which is within the introduction to make it easier to find the updates and information you are interested in.

The HTML format does allow you (dependent upon your web browser) to:

• print the document should you wish to keep a paper file:
  • select the ‘Print Page’ button on the left-hand side and print to your local printer
• save the document as a PDF:
  • select the ‘Print Page’ print button and using the drop-down list on the printer select ‘print to pdf’, which would allow you to save as PDF and file electronically
  • on a mobile device you can select the more options, then select options to be able to save as PDF

Getting more information and sending feedback

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Send your feedback about this Employer Bulletin or ideas for articles in future bulletins, by email to mary.croghan@hmrc.gov.uk.