Employer Bulletin: August 2021

HMRC has published its bi-monthly magazine providing the latest information on payroll-related topics for employers and agents including the following:

–        Changes to right to work checks from 1 July 2021 – employers can no longer accept EU passports or ID cards as valid proof of right to work. Instead, an online right to work check will need to be carried out.

–        EU settlement scheme: late applications – employers may wish to encourage those employees who are yet to apply under the scheme to do so as soon as possible. The Home Office has also published guidance for employers on right to work checks, which covers the situation where EU workers have missed the EU settlement scheme deadline.

–        Employees who normally work in the UK, the EU, or both, and their work location has changed because of coronavirus-related travel restrictions – HMRC will consider individual circumstances to decide whether NICs are due in the UK. Arrangements with the EU which allow HMRC to disregard changes to individuals’ work locations caused solely by coronavirus-related restrictions will end no later than the end of December 2021 (subject to review).

–        HMRC will only accept new informal payrolling arrangements for benefits in kind during the 2021–22 tax year – businesses which previously had an informal payrolling arrangement are expected to register for formal payrolling before April 2022 for the 2022–23 tax year.

–        Off-payroll working rules from 6 April 2021 – HMRC has produced further guidance on the changes, particularly for organisations which are now responsible for deciding whether the rules apply to workers they engage.