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What's new for PAYE for 2017?

Filing deadlines and other essential due dates

31 March 2017: Last ever date for submission to HMRC Share and Asset Valuation for an employment income post transaction valuation check or PAYE health check.

5 April 2017:

  • Deadline for paying someone in the 2016/17 tax year.
  • Deadline for employees to make good any non-payroll benefits that can be taxable as earnings for NICs.
  • Time to calculate your IR35 deemed payment. Tax and NICs paid by 19 April (22 April if paid electronically).

19 April 2017:

  • The final payroll report for 2016/17 under Real Time Information reporting, submit your final FRS and EPS.

31 May 2017:

  • The last day for giving form P60 to employees who were still working for your at 5 April 2017.

6 July 2017:

  • Filing deadline for Employment Related Securities returns for all open schemes. Nil returns required if there are no notifiable events. 
  • PIIDs due to HMRC.
  • Deadline for HMRC approval of PAYE Settlement Agreements.
  • The last date for employees to make good the cost of all non-payrolled benefits in kind (other than beneficial loans) for income tax. Different deadlines continue to apply for Payrolled Benefits. See NICs deadline above.

What's New?

From 6 April 2017 

  • The basic PAYE tax code is set at 1150L for employees. Employers should check online for updates to coding notices.
  • Salary sacrifice schemestax and employer NIC advantages removed from April 2017, except for pensions, childcare, cycle to work and ultralow emission cars.  Pre-April 2017 arrangements protected until April 2018 (April 2020 for cars, accommodation and school fees)
  • Assets made available without transfer of ownership: Finance Bill 2017 contains new rules on how to calculate the chargeable value where there is mixed private and business use or assets are shared.

  • Company cars: The 3% differential between petrol and diesel cars, expected to be abolished from April 2016, will instead be retained until 2020/21.   Taxable benefits increase by 2% for petrol and diesel cars up to a maximum of 37%.  From 2020/21 new lower bands will apply for ultra-low emissions vehicles and the percentages for other cars will rise by 1%.

  • Car fuel benefit charges: the benefit will be based on the appropriate percentage of £22,600 (£22,200 in 2016/17).

  • Van benefits: van and van fuel benefits will increase to £3,230 (£3,170 in 2016/17) and £610 (£598 in 2016/17).  The van benefit charge exemption for zero emission vans is being phased out between April 2015 and April 2022, with 20% of the normal benefit being charged in 2016/17 and 2017/18.

  • Pensions auto-enrolment: the scheduled increases in automatic enrolment minimum contributions rates in October 2017 and October 2018 will be delayed until April 2018 and April 2019 to align them with the start of the tax year.

  • Apprenticeship levy: large employers with a paybill in excess of £3m will be subject to a 0.5% Apprenticeship levy, paid through PAYE. 

  • Childcare and childcare vouchers: the new tax free childcare scheme will be rolled out in 2017.  Childcare vouchers will be closed to new entrants from April 2018.

  • Legal support: employees no longer pay tax on legal support from their employer.

  • Pensions: tax rules and planning: new allowance exempts first £500 of pension advice provided to an employee.

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