Paying Class 1A National Insurance contributions
HMRC is reminding employers that they need to pay Class 1A National Insurance contributions and complete a P11d(b) by 6 July 2021 if they have taxed benefits in kind through the payroll.
Class 1A National Insurance contributions are payable by employers on nearly all benefits taxed through the payroll. Guidance on payrolling benefits in kind is available.
Guidance is available on completing form P11d(b).
Reporting Pay as you earn (PAYE) in real time
HMRC have published an article in the June 2021 Employer Bulletin advising employers of the continuation of the risk-based approach to charging penalties. It also provides information on reporting your payroll information accurately and on time.
VAT Reverse charge on construction and building services
The key aspects are:
- it applies to standard and reduced-rated supplies of building and construction services made to VAT registered businesses, who in turn also make onward supplies of those building and construction services
- the contractor is responsible for paying the output VAT due rather than the sub-contractor, and can continue to reclaim this amount as input tax
- the scope of supplies affected is closely aligned to the supplies required to be reported under the Construction Industry Scheme (CIS), but does not include supplies of staff or workers for use by the customer
- the legislation introduces the concept of ‘end users’ and ‘intermediary suppliers’
In order to be treated as end users and intermediary suppliers, the customer needs to notify the supplier in writing. This can be done by correspondence or as part of terms and conditions. There is more detail in the technical guidance.
We’ve been running webinars for businesses and they can register now. If there are no dates available, a webinar recording can be viewed.
Find more information on the Construction Industry Scheme.