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Consultation on PAYE regs amendments

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HMRC is consulting on two sets of draft amending regulations making necessary changes to PAYE legislation from April 2018 in respect of car data reporting required as part of voluntary payrolling, and taxable amounts under optional remuneration arrangements.

  • The draft Income Tax (Pay As You Earn) (Amendment No 2) Regulations 2017 set out what information employers, who choose to payroll car and car fuel benefit, are required to report and how it will be submitted to HMRC. Although voluntary payrolling of benefits in kind generally removes the need for employers to submit forms P11D at the end of the year, HMRC still requires employers to provide data regarding company cars provided as a benefit in kind.
  • The draft Income Tax (Pay As You Earn) (Amendment No 3) Regulations 2017 clarify the taxable amounts that need to be reported under optional remuneration arrangements (salary sacrifice). Finance Act 2017 introduced legislation to remove the tax and NICs advantages of salary sacrifice arrangements, meaning that where a benefit in kind is provided under such arrangements, the taxable amount will be the greater of the benefit calculated under normal rules, or the amount sacrificed.

Comments on the draft regulations are invited by 28 November. See