Employment tax deadlines

Submit paper or electronic forms P46 (car)
Deadline for action: 2 November 2020 and 2 February 2021

Issue: Details of company cars provided to employees or withdrawn without a replacement for the previous quarter should be provided to HMRC using form P46(car).
These details are usually submitted electronically. The completed online form can, however, be printed out and submitted in paper form to HMRC by the relevant date. This method cannot be used for replacement vehicles and the form should not be used if the car benefit is taxed via the payrolling of benefits process.

Action: P46(car) forms (electronic or paper) covering the quarters to 5 October 2020 and 5 January 2021 are required to be received by HMRC by 2 November 2020 and 2 February 2021 respectively.

Onshore & offshore employment intermediaries – quarterly reports
Deadline for action: 5 November 2020 and 5 February 2021

Issue: Employment intermediaries are required to make quarterly reports to HMRC. The quarterly reports for the quarters to 5 October 2020 and 5 January 2021 are due by 5 November 2020 and 5 February 2021 respectively. These reports require a considerable amount of information regarding all workers provided to their clients, including those operating via personal service companies (PSC), and related payments where the intermediary or their payroll operator did not operate PAYE.

Action: Quarterly employment intermediary reports must be made using HMRC’s report template and submitted using HMRC’s online service. Automatic penalties arise if the report is late or incorrect, with the amount of each penalty depending on the number of offences in a 12-month period: £250 (first), £500 (second) and £1,000 (third and later). The penalty clock is reset once there has been a 12-month period without a late or incorrect return.

PAYE and NICs reporting and payments
Deadline for action: Monthly – from 19 (or 22) November 2020

Issue: To avoid interest and penalties, employers should make a full payment submission (FPS) to HMRC at the time they pay their employees and pay over deducted income tax and National Insurance contributions (NICs) by the due date. Income tax and NICs deducted under PAYE should be paid by the 19th of the following month if paid by cheque, or the 22nd if paid electronically. The FPS and, if applicable, an employer payment summary (EPS) should also be submitted by the 19th of the following month.

Action: Employers should submit their FPSs and EPSs (including, where applicable, a report of the apprenticeship levy due and allowance claimed) and pay their PAYE tax and NICs on time. Advance payment should be made where the payment date falls on a weekend. Late payments attract interest, currently at 2.60 per cent per annum, and late filing gives rise to penalties of between £100 and £400 per month, depending on the number of employees.

Employers that have incurred penalties have 30 days to appeal if appropriate.

Construction industry scheme (CIS) reporting and payment dates
Deadline for action: Monthly – from 19 (or 22) November 2020

Issue: Written statements to subcontractors, CIS300 monthly returns of payments made by contractors to subcontractors, and payment of the CIS tax deducted, should be made on a monthly basis.

Action: Contractors should provide a written statement to every subcontractor from whom a deduction has been made and submit their CIS300 Returns by the 19th of the following month to avoid late filing penalties. To avoid interest and late payment penalties, CIS tax deducted should be paid by the 19th of the following month if paid by cheque, or the 22nd if paid electronically. Advance payment should be made where the payment date falls on a weekend.

Check for new advisory fuel rates
Deadline for action: 1 December 2020

Issue: HMRC revises the advisory fuel rates every quarter. These rates may be used when an employer reimburses employees for fuel for business travel in their company cars, and when an employer requires employees to repay the cost of fuel used for private travel in such vehicles.

Action: Employers should review HMRC’s advisory fuel rates each quarter to ensure that they are using the current rates. If employers reimburse such costs at different rates, records must be kept that support the rates used.

DAC 6 reporting deadline - reporting obligation triggered on or after 1 July 2020
Deadline for action: 30 January 2021 and ongoing

Issue: UK intermediaries that promote or assist in the design or implementation of a cross-border arrangement that meets a relevant hallmark are required to report details of that arrangement to HMRC under the EU mandatory disclosure rules known as DAC 6 (unless another intermediary will report those details to HMRC or the tax authority of an EU member state by the relevant deadline). Where a UK taxpayer designs or implements a reportable arrangement, and there is no relevant intermediary in the UK or an EU member state (or there is such an intermediary but it is prevented from making a report by legal professional privilege), the taxpayer must report relevant details to HMRC.
Where a reportable arrangement was made available for implementation, or was ready for implementation, between 1 July 2020 and 31 December 2020 (inclusive), or where the first step in implementation was taken between those dates, intermediaries or relevant taxpayers are required to make a report to HMRC between 1 January 2021 and 30 January 2021. From 1 January 2021, a report must be made within a 30-day period beginning with the earliest of: the reportable arrangement being made available for implementation; the reportable arrangement being ready for implementation, or the first step in the implementation of the reportable arrangement being made.

Action: UK intermediaries should review arrangements advised on and identify any for which a reporting obligation was or will be triggered between 1 July 2020 and 31 December 2020 (inclusive), ensuring all relevant reporting obligations are met by 30 January 2021. Taxpayers should also review, and report if necessary, any cross-border arrangements that were designed or implemented in the period. Intermediaries and taxpayers should introduce appropriate procedures and processes to ensure that reporting obligations triggered after 1 January 2021 are met on a timely basis. 

DAC 6 reporting deadline - reporting obligation triggered on or before 30 June 2020
Deadline for action: 28 February 2021

Issue: UK intermediaries that promoted or assisted in the design or implementation of a cross-border arrangement that met a relevant hallmark, where the first step in implementing that arrangement was made between 25 June 2018 and 30 June 2020 (inclusive), are required to report details of that arrangement to HMRC under the EU mandatory disclosure rules known as DAC 6 (unless another intermediary will report those details to HMRC or the tax authority of an EU member state by the relevant deadline). Where a UK taxpayer took the first step in implementing a reportable arrangement between those dates, and there is no intermediary in the UK or an EU member state (or there is such an intermediary but it is prevented from making a report by legal professional privilege), the taxpayer must report relevant details to HMRC.
Where the first step in implementing a reportable arrangement was taken between 25 June 2018 and 30 June 2020 (inclusive), intermediaries or relevant taxpayers are required to make a report to HMRC by 28 February 2021.

Action: UK intermediaries should review arrangements advised on and identify any where a reporting obligation was triggered between 25 June 2018 and 30 June 2020 (inclusive), ensuring all relevant reporting obligations are met by 28 February 2021. Taxpayers should also review, and report if necessary, any cross-border arrangements where the first step in implementation was taken in the period. 

For more information please get in touch with Anne-Marie Welch.