Brought to you by
brightpay

The payroll solution that provides all you need for Auto Enrolment.

Share this content

3 COVID-19 updates from HMRC you might have missed

28th Jun 2022
Brought to you by
brightpay

The payroll solution that provides all you need for Auto Enrolment.

Share this content

Isn’t it mad how Covid just went away? There’s not a mask to be seen on the underground anymore, people are sharing elevators again, and someone even shook my hand the other day and didn’t do the awkward “oh should we use elbows or hands” dance first! Yeah that’s right, the pandemic has (un)officially ended!

But if the pandemic has ended then so too must government assistance. Furlough is now a thing of the past and all the other various schemes are also being whittled off one by one. Well, the latest casualties are three not so well-known schemes, but definitely still worth mentioning. 

 Save As You Earn  – Employees who take part in Save As You Earn (SAYE) schemes can delay payments of monthly contributions to their linked savings accounts, for any reason, on up to 12 occasions in total without causing the savings contract to be cancelled. During the pandemic, employees who were on unpaid leave or furloughed because of Covid were allowed to pause saving for an unlimited period by HMRC.

As of 6th April 2022, if employees start a new savings contract, they won’t be eligible for this easement. However, if employees had a savings contract in place before the 6th of April 2022, they will remain eligible.

free trial

Enterprise Management Incentive (EMI) - Normally, employees who take part in an EMI scheme need to either work at least 25 hours per week or, if less than that, spend at least 75% of their working time as an employee for the company whose shares are subject to the EMI option, or a qualified subsidiary – this is the working time requirement.

During the pandemic, HMRC graciously put an easement in place for those who would usually have met the working time requirement but were unable to do so because they were furloughed, their working hours were reduced or they took unpaid leave.

As of April 6th 2022, this too was kicked to the curb and now all employees participating in an EMI plan must meet the usual working time requirement again.

time savings

Social security coordination with the EU - During the pandemic, HMRC disregarded changes to individuals’ work locations which were caused solely by Covid related restrictions, when deciding whether National Insurance contributions were due in the UK.

As of the 1st July 2022, HMRC will consider all changes to work location under the standard Social Security coordination rules when deciding whether UK Social Security legislation applies, and UK National Insurance contributions are due in the UK.

If an employer or an employee needs proof that they have to pay UK national insurance contributions while working in the EU, they should use the existing forms to apply for a PDA1 certificate. The forms can all be found online at www.gov.uk

So let’s hope that’s the last we hear of Miss Rona eh? Just like HMRC, we are so over it! We don’t need any reminders cropping up like your ex on Facebook memories, so maybe the ceasement of these easements is all a good thing. 

brightpay

Written by Aoibheann Byrne | BrightPay Payroll Software