The Payroll Library for 2021/22
Whatever the current situation, tax year 2021/22 is here. So, to ensure the consistent operation of PAYE, I have put together a list of guidance from the i-Realise Website, the essential PAYE booklets, tables and leaflets and some links to HMRC’s internal manuals:
- The Basic Earnings Assessment
- ‘What Tax Code to Use’
- ‘What Student Loan Plan to Use’
- Rates and Allowances 2021/22
- P9X (Tax codes to use from 06 April 2021)
- The Pay Adjustment Tables (Table A)
- The Taxable Pay Tables (2021/22)
- ‘Income Tax rates and allowances for current and past years’
- Starter Checklist (printable - ensure the version you are using says 02/21)
- Expat Starter Checklist (printable – ensure the version you are using says 02/21)
There are also some in-depth manuals that are worth bookmarking:
- Off-payroll working rules from April 2021
- Off-Payroll Working Rules from April 2021: Engagement
- Off-payroll working rules from April 2021: Fee-payer responsibilities
- Off-payroll working rules from April 2021: Status Determinations and Disagreements
- Off-payroll working rules from April 2021: Contractors
- Off-payroll working rules 2021 – international matters
· National Insurance rates and categories (Gov.UK guidance)
- Rates and allowances: National Insurance contributions
- CA38 (table letters A, H, J, M and Z)
- CA40 (Employee only NICs)
- CA41 (Table letters B and C)
- CA42 (Foreign-going mariners and deep-sea fishermen)
- CA44 (Company directors)
- CWG2 (The Further guide to PAYE and NICs) 24 March 2021 updated version
- Share fisherman: Income Tax and National Insurance contributions
- Voluntary National Insurance: re Class 3 ‘voluntary’ Contributions
Please ensure you keep an eye out for changes and updates to the CWG2. There is also the National Insurance Manual for in-depth reading about all things NICs.
There is no direct replacement to the booklets that we used to have on the statutory payments. However, guidance can be found on the below links:
- SSP (Employer guide to pay)
- SSP linking tables (Open Document format for 2021/22)
- Statutory Sick Pay: employee fitness to work (with information about absences relating to coronavirus (COVID-19))
- Claim back (via the Statutory Sick Pay Rebate Scheme for COVID-19 related SSP)
There is also the ‘Calculate your employee’s SSP’ tool and ‘Work out your employee’s Statutory Sick Pay’.
- SMP and Leave (Employer guide)
- SMP (table of dates for employee entitlement, Open Document format for 2021/22)
- Manually calculate Statutory Maternity Pay
- SAP and Leave (Employer guide)
- SAP (table of dates for employee entitlement, HTML format for 2021/22)
- Guidance ‘Statutory Adoption Pay: employee circumstances that affect payment’
- Guidance ‘Statutory Adoption Pay: manually calculate your employee's payments’
- SPP and Leave (Employer guide)
- SPP (birth – table of dates for employee entitlement, Open Document format for 2021/22)
- SPP (adoption – table of dates for employee entitlement, Open Document format for 2021/22)
- ShPP and Leave (Employer guide)
The rules regarding entitlement to ShPP (in terms of service) mirror those for SMP – i.e. the employee must have been employed for 26 weeks up to and into the Qualifying Week or Matching Week for adoption. Therefore, the above tables can be adapted.
- Guidance ‘Employee circumstances that affect payment of Statutory Parental Bereavement Pay’
- Manually calculate your employee’s Statutory Parental Bereavement Pay
- Tables with relevant weeks and start dates (Open Document format for 2021/22)
- Online claim form (for employees to give to employers)
Note that HMRC’s use of the word ‘guidance’ can be translated as ‘advice’. My starting place for in-depth guidance is to consult the Statutory Payments Manual though, perhaps, this is an acquired taste!
There is also a Maternity, adoption and paternity calculator (for calculating SMP, SAP and SPP).
- SL3 (Student Loan Deduction Tables)
- Guidance for employers
- Starter Checklist (ensure the manual version has reference 02/21 and online one is version 5)
- Expat Starter Checklist (manual version reference 02/21 and online one is version 4)
The E17 ‘Collection of Student Loans’ booklet was discontinued from 06 April 2016. Previous versions of the booklet are still available on the Gov.UK Website but are increasing not valid, as the thresholds are incorrect.
The Collection of Student Loans Manual is a good read though!
Note that if a car has a CO2 emission of between 1 and 50g/km, the car’s zero emission mileage value must be reported via the updated P46(Car).
Remember that 2020/21 tax year is not finished until the P11Ds have gone in. The below will be useful in finishing the old tax year and working in the new:
- Optional remuneration arrangements (480: Appendix 12)
- P11D (pdf and online)
- P11D(b)
- Company car tax appropriate percentages ready reckoner
- Sending car data to HMRC: payrolling car benefit and car fuel benefit
- Accommodation Working Sheet 1
- Cars and Car Fuel Working Sheet 2
- Cars and Car Fuel (OpRA) Working Sheet 2b
- Vans Working Sheet 3
- Loans Working Sheet 4
- HMRC Official Rates: beneficial loan arrangements (2.25% for 2020/21, 2% for 2021/22)
- Relocation Working Sheet 5
- Mileage Working Sheet 6
- ‘How to complete forms P11D and P11D(b)’
- 'No return of Class 1A National Insurance contributions’ (Gov.UK)
- 480 (Expenses and Benefits starting point collection of documents)
- 490 (Employee travel starting point collection of documents)
- CWG5 (Class 1A NICs on benefits in kind, termination payments and sporting testimonials 22 February 2021 version)
- Pension schemes rates and allowances
- Guidance ‘Pension schemes: value your pension for lifetime allowance protection’
- Guidance ‘Protect your pension lifetime allowance’
- Guidance ‘Work out your reduced (tapered) annual allowance’
- Guidance ‘Check if you’ve gone above the money purchase annual allowance’
The ‘Pension scheme rates’ advice is an interesting document as it shows historical values too.
There is also the in-depth Pensions Tax Manual.
