Tax - Employer Solutions

End of year employer compliance

By:
Colin Piggott,
Helen Norris
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Now that the 2023/24 tax year has ended, your business may be required to comply with various end-of-year employer reporting obligations. To support you in this regard, we have compiled below a summary of these obligations. If you wish to speak with an expert or have any questions, please contact one of our employment tax specialists listed below.
Contents

P11D / P11D(b)

P11D / P11D(b) are required to report employee benefits in kind (e.g. company cars, private medical insurance, etc)

What do employers often overlook?

Outstanding director current accounts (which can give rise to a “beneficial loan” BIK)

What is the deadline?

6 July 2024

PAYE Settlement Agreement (“PSA”)

PAYE Settlement Agreement (“PSA”) are required to settle the tax and NIC associated with certain employee benefits and expenses (e.g. staff gifts)

What do employers often overlook?

Staff entertaining, e.g. employee lunches, drinks etc (these costs are often taxable benefits)

What is the deadline?
  • 5 July 2024 to apply for a new PSA
  • 22 Oct 2024 to pay the tax/NIC

Short term business visitor agreement (“STBVA”) report

A STBVA is an agreement with HMRC to relax PAYE withholding on remuneration paid to non-UK employees carrying out duties in the UK.  The annual report provides HMRC with relevant information of such activity in the tax year.

What do employers often overlook?

If employers have employees outside the UK, occasionally carrying out duties in the UK, and don’t have a STBVA, UK PAYE will usually be payable

What is the deadline?

31 May 2024

Employee share plan return

Employee share plan returns are required to report to HMRC any employee share plan activity (e.g. grants of share options, exercises of share options, transfers/issues of shares or loan notes to employees/directors etc)

What do employers often overlook?

One-off acquisitions of securities by employees/directors are also reportable (they don’t need to form part of a wider “plan”)

What is the deadline?

6 July 2024 

Appendix 5 Year End Reporting

Appendix 5 arrangements enable real time relief for foreign taxes to be claimed in the UK payroll.  All employers that operate such an arrangement are required to report final details of foreign taxes deducted and paid.

What do employers often overlook?

Employers should have included any net UK tax deducted on their employees Full Payment Submissions throughout the year and any errors should have been corrected before the end of the tax year.

What is the deadline?

As soon as possible after end of tax year

Internationally mobile employee self assessment tax returns

If you have internationally mobile employees, it is likely that self assessment tax returns may be required (both in the UK and elsewhere). The employees residency position should also be reviewed.

What do employers often overlook?

The social security position is often overlooked – it is important to review and understand any potential exemptions

What is the deadline?

31 Jan 2025, but important to start earlier and establish residency position

In addition, below are a few other important matters to keep in mind going forward:

Subject area What is changing Things to consider
National Minimum Wage For over 21s, the hourly rate is £11.44 (from 1 April 2024) Employers need to be careful if they are operating any salary sacrifice schemes
Payrolling of benefits HMRC has said compulsory payrolling of benefits will be introduced from 6 April 2026. Employers may wish to consider the merits of introducing earlier.  To start on 6 April 2025 employers need to have registered by 5 April 2025.
Holiday pay  Commission, overtime, bonuses, and allowances should now be included when calculating the appropriate rate of holiday pay for employees. The look back period is capped at 2 years in GB – no such cap applies in NI.