This bulletin follows the release of the August Agent Update (Issue 122). This month the content most relevant to employment taxes and reward activities includes:

PAYE Settlement Agreement calculations 2023/24

• Any income tax and Class 1B National Insurance arising from the PAYE Settlement Agreement (PSA) for 2023/24 must be paid to HMRC by 22 October 2024 if paying electronically, or by 19 October 2024 if paying by post. 
• A PSA calculation should be submitted before making the payment, the easiest way is to submit calculations online. If a payment is made without submitting PSA calculations, HMRC will not be able to verify what the amount is for or if it is correct. 
• To submit calculations, employers will need to include:
  • their employer reference;
  • the tax year of the PSA calculation – even if it is a nil return;
  • the type of expenses and benefits being reported – only report those agreed with HMRC;
  • the number of employees receiving each expense or benefit, including any employees that earn below the personal tax allowance; and
  • the correct rate of tax for each employee.
• Further information is available at PAYE settlements and on HMRC’s YouTube playlist.

Employer liabilities and payments: “Earlier Year Update” becomes “End of tax year adjustment”

• HMRC has made updates to the terminology used when making a correction to Real-Time Information (RTI) reports. 
• Adjustments made to:
  • year ended 5 April 2018 or earlier – will be made by submission of Earlier Year Update (EYU) only;
  • year ended 5 April 2019 – EYU or Full Payment Submission (FPS) will be accepted;
  • year ended 5 April 2020 – EYU or FPS will be accepted; and 
  • year ended 5 April 2021 and later years – adjustment will be made by submission of FPS only. 
• The online service will now display the new terminology of “End of tax year adjustments” for corrections made for 2020/21 or later tax years. 
• Corrections for 2019/20 or earlier tax years will be displayed as “Earlier Year Update”. 

Student and postgraduate loans

• Employers who receive student and/or postgraduate loan start notices (form SL1 or PGL1) from HMRC, should ensure that the following details are correct:
  • loan or plan type on the start notice; and
  • start date shown on the notice.
• If an employee has indicated that they have a student loan (for example, via form P45), but a start notice has not been received from HMRC, the employee should confirm which plan or loan type they have. If the employee is unsure about the correct plan or loan type, they can check via their student loan online account.
• Student loan deductions should continue until HMRC issues a stop notice (form SL2 or PGL2).

Support for sole traders as they get started in business

• HMRC has updated their guidance to make it easier for individuals to know what they need to do when setting up as a sole trader. 
• By following the steps in the guidance, individuals can check their employment status, understand their obligations, and register for tax.