HMRC update on payroll issues for tax agents
HMRC has recently provided updates on the following payroll issues to the professional bodies:
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Delayed issue of P6s to employers: the P6 is the form which tells the employers of an in-year change to an employee’s tax code. Issue of these was suspended following an IT glitch but has now resumed.
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Starter and Leaver Forms: from April 2011 there will be some changes to the P45, and the paper form P45 is being cut to three pages.
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Centralising employer PAYE work in Newcastle: HMRC provides an update on progress with moving paper processing work to Newcastle. Meanwhile be sure that you have the up-to-date address for correspondence; post should be forwarded from closed offices but in some cases this has not happened.
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Interim employer penalties: Employers who did not need to do an end-of-year return for 2009/10 should have notified HMRC of this. HMRC has not finished processing these notifications, so some employers may have received an incorrect P35 penalty notice which should be cancelled in due course.
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P11Ds: HMRC is testing the interface between the Employer Compliance System (ECS), on which all P11D information is held, and NPS. Once up and running, this will allow NPS to use the ECS information in automatically generating tax codes for the 2010/11 and P800 tax calculations for 2009/10.