The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations, SI 2022/227, allow HMRC to issue Directions setting out how employee expenses should be provided HMRC, and make changes to the rules on multiple PAYE schemes with related amendments to the construction industry scheme rules for multiple contractors.
This follows a significant increase in the volume of expenses claims by employees or agents, particularly relating to individuals who have been working at home during the Covid-19 pandemic. HMRC notes that many claims have not been made on form P87 (claiming income tax relief on employment expenses), triggering manual intervention by HMRC.
Setting out the format in which employee expenses information is provided will help HMRC to automate processing of claims and address backlogs. A new reg 65A will be introduced into the PAYE regulations, SI 2003/2682 and will have effect from 6 May 2022. The Directions themselves are also expected to be published on that date.
Changes will also be made to reg 98 of the PAYE regulations which allows an employer to elect to be treated as operating separate (‘multiple’) PAYE schemes in relation to different groups of employees. The changes will provide for mid-year elections, allow employees to be allocated to more than one group, and make consequential changes to information that is required to be included in an election notice, as well as the time periods within which an election can be made or revoked. Equivalent changes will be made to the construction industry scheme rules relating to elections by contractors to be treated as different contractors in relation to different groups of sub-contractors. In both cases, these changes apply for elections made on or after 6 April 2022.
The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations, SI 2022/227, allow HMRC to issue Directions setting out how employee expenses should be provided HMRC, and make changes to the rules on multiple PAYE schemes with related amendments to the construction industry scheme rules for multiple contractors.
This follows a significant increase in the volume of expenses claims by employees or agents, particularly relating to individuals who have been working at home during the Covid-19 pandemic. HMRC notes that many claims have not been made on form P87 (claiming income tax relief on employment expenses), triggering manual intervention by HMRC.
Setting out the format in which employee expenses information is provided will help HMRC to automate processing of claims and address backlogs. A new reg 65A will be introduced into the PAYE regulations, SI 2003/2682 and will have effect from 6 May 2022. The Directions themselves are also expected to be published on that date.
Changes will also be made to reg 98 of the PAYE regulations which allows an employer to elect to be treated as operating separate (‘multiple’) PAYE schemes in relation to different groups of employees. The changes will provide for mid-year elections, allow employees to be allocated to more than one group, and make consequential changes to information that is required to be included in an election notice, as well as the time periods within which an election can be made or revoked. Equivalent changes will be made to the construction industry scheme rules relating to elections by contractors to be treated as different contractors in relation to different groups of sub-contractors. In both cases, these changes apply for elections made on or after 6 April 2022.
