The Income Tax (Pay As You Earn) (Amendment) Regulations, SI 2021/218 amend the principal income tax PAYE regulations (SI 2003/2682) to implement new reporting requirements where an employer is correcting errors in their returns.
HMRC is simplifying the way employers and pension providers are required to report amendments to their PAYE real time information returns. At present employers and pension providers who are correcting inaccuracies more than 14 days after the end of the relevant tax year must report the difference between what they had originally reported and what the correct amounts should have been. The regulations will enable employers and pension providers to report only the corrected end-of-year payroll information rather than the differences.
The Regulations also make a consequential change to ensure employers reporting under the new requirements are required to meet any shortfall of tax paid as a result of the original inaccuracy. The Regulations will come into force on 6 April 2021 and are compulsory for tax year 2020/21. Employers and pension providers can choose to use the amended reporting for 2018/19 and 2019/20.
The Social Security (Contributions) (Amendment) Regulations, SI 2021/219, make similar changes to the way employers or pension providers must amend any inaccuracies relating to NICs.
The Income Tax (Pay As You Earn) (Amendment) Regulations, SI 2021/218 amend the principal income tax PAYE regulations (SI 2003/2682) to implement new reporting requirements where an employer is correcting errors in their returns.
HMRC is simplifying the way employers and pension providers are required to report amendments to their PAYE real time information returns. At present employers and pension providers who are correcting inaccuracies more than 14 days after the end of the relevant tax year must report the difference between what they had originally reported and what the correct amounts should have been. The regulations will enable employers and pension providers to report only the corrected end-of-year payroll information rather than the differences.
The Regulations also make a consequential change to ensure employers reporting under the new requirements are required to meet any shortfall of tax paid as a result of the original inaccuracy. The Regulations will come into force on 6 April 2021 and are compulsory for tax year 2020/21. Employers and pension providers can choose to use the amended reporting for 2018/19 and 2019/20.
The Social Security (Contributions) (Amendment) Regulations, SI 2021/219, make similar changes to the way employers or pension providers must amend any inaccuracies relating to NICs.
