HMRC PAYE Bulletin

HMRC’s latest Bulletin includes items on getting PAYE payments right, new student loan rules and the end of the dispensations regime.
HMRC have published the latest edition of their Employer Bulletin. Some of the items covered by this latest edition are:
• Payments for 2014/15 PAYE Settlement Agreements (PSAs), which are due by 22 October 2015. The Bulletin also includes a reminder for employers of how to ensure that their payment is correctly allocated against their PSA rather than their normal PAYE account.

• A further look at what employers need to do to ensure that they get their PAYE payment references correct. This follows detailed articles in previous editions of Employer Bulletin, which we have also covered in Weekly Tax Matters. HMRC note that there has been “an increase in the number of employers supplying an incorrect reference number”. The article looks again at when employers should use the longer-format 17-digit reference as opposed to their standard 13-digit payment reference, and cautions that employers need to remember to update or remove the additional four digits when making the next payment, to avoid it being allocated to the wrong month.

• An overview of the move from the current dispensations regime to a new expenses exemption from next April. As well as an overview of the changes, the article also touches on the need for employers to ensure that they have appropriate systems in place, and looks at how benchmark scale rates, bespoke rates and the mileage allowance and Advisory Fuel Rates will operate under the new system. HMRC are to publish details of how to apply for bespoke rates later this year.

• The practical implications of the introduction of a new threshold for student loan repayments, also from 6 April next year. An important point here is that individuals repaying under the current threshold will not be affected by the change, and that employers will, therefore, need to be aware of which ‘plan type’ an employee falls within and ensure that this information is correctly entered in their payroll software. More detailed guidance is expected before the new threshold is introduced.