Tax Updates and Guidance from the June 2024 Employer Bulletin

HMRC’s June 2024 Employer Bulletin brings critical changes across employment tax, compliance requirements, and reporting standards. With the 2024–25 tax year underway, every employer—from microbusinesses to nationwide contractors—needs to understand what’s new, what’s mandatory, and how to stay compliant.

Here, we break down the biggest updates, explain what they mean in practice, and show how Zipptax helps employers navigate them painlessly.

 Why This Bulletin Matters More in 2024

The shift to digital-first reporting, evolving payroll thresholds, and tighter IR35 scrutiny signal a new era in employer obligations. Penalties are increasing, automation is replacing paper processes, and proactive compliance is the name of the game.

Employers who keep up will benefit. Those who don’t may face avoidable costs, audits, or legal headaches.

 Key Tax and Payroll Policy Updates

1.  NICs Relief for Hiring Armed Forces Veterans (Now in Effect)

Employers who hire eligible former service members can now claim 12 months of Class 1 secondary NICs relief on earnings up to the Upper Secondary Threshold (£50,270).

How it works:

• Applies to veterans in their first civilian employment
• Relief lasts for one full year from start date
• Must be claimed via Real Time Information (RTI) submissions

 Example: A warehouse business employing two veterans at £28K each could save around £4,000 in NICs in a single year.

 Zipptax Tip: Don’t forget to maintain a copy of the veteran’s discharge papers for audit trail purposes.

2.  CIS Returns Move Fully Online (Effective April 2024)

HMRC officially sunsetted legacy portals in April. From now on:

• Monthly returns, subcontractor verification, and payments must use HMRC’s CIS Online platform
• Manual processes and paper filings are no longer accepted

Consequences of non-compliance:

• Withheld subcontractor payments
• Late penalties and increased HMRC oversight
• Potential disruption in supply chain contracts

 Zipptax Action Plan: We help construction businesses and agents integrate with CIS APIs, train payroll teams, and fix non-compliant records.

3.  New PAYE Settlement Agreement (PSA) Deadline Guidance

PSAs simplify reporting for non-cash employee benefits (gifts, travel, hospitality).

Key deadlines:

• 5 July 2024 — Submit your PSA
• 22 October 2024 — Pay agreed tax and NICs liability

 Tip: Small businesses often overlook PSA as an option. We help evaluate if your team celebrations, seasonal gifts, or staff perks fall into this category.

4.  Updated Statutory Payment Rates (From April 2024)

Employers must pay the updated minimum rates for:

Statutory Payment 2024–25 Rate

Statutory Maternity Pay - £184.03/week

Statutory Paternity Pay - £184.03/week

Shared Parental Pay - £184.03/week

Statutory Sick Pay (SSP) - £116.75/week

 Payroll To-Do: Ensure these values are updated in your system and reviewed alongside employee eligibility thresholds.

 Critical Guidance Areas for Employer Compliance

5.  IR35 and Off-Payroll Working Rules Still Under the Microscope

HMRC reaffirms its expectations for IR35 enforcement, especially among:

• Private companies hiring freelancers or consultants
• Public sector organisations using umbrella companies
• Employers uncertain about self-employment status

You must:

• Use the CEST tool
• Provide a clear Status Determination Statement (SDS)
• Keep evidence of determinations for 6 years

 Scenario: A marketing firm classifying an on-site content creator as “outside IR35” without CEST assessment could face backdated NICs and tax exceeding £6,000+.

 Zipptax provides IR35 audits, SDS templates, and email-based support for borderline cases.

6.  HMRC's Time to Pay Scheme and Debt Support

The Bulletin reminds employers they can request a Time to Pay (TTP) arrangement if they’re unable to meet tax liabilities.

• Submit your request before missing deadlines
• Use HMRC’s online portal for self-service plans (under £30,000)
• Larger or complex cases can still be arranged by phone

 Zipptax can assist with submission, negotiation, and communication with HMRC.

7.  New Loan Repayment Thresholds for Employees

From April 2024, new repayment thresholds apply:

Loan Type 2024–25 Threshold Rate

Plan 1 (pre-2012) £24,990 9%

Plan 2 (post-2012) £27,295 9%

Plan 4 (Scotland) £27,660 9%

Postgraduate Loan £21,000 6%

Payroll Tip: Assign the correct plan based on the employee’s HMRC letter, not assumptions.

8.  National Minimum Wage (NMW) Increases Now Live

From 1 April 2024:

Age Band New Rate (Hourly)

21+ (NLW) - £11.44

18–20 - £8.60

16–17 / Apprentice - £6.40

Failure to comply results in:

• Back pay enforcement
• Penalties of up to 200% of underpaid wages
• Name-and-shame lists published by BEIS

 Practical Impact for Employers and Payroll Teams

 For SMEs and Family-Run Firms:

• IR35 can sneak up in project-based contracts—review freelancers before onboarding
• Use Zipptax for one-off PAYE guidance when bonuses or gifts are involved
• Veteran NICs relief offers real savings for socially conscious employers

 For Construction Firms:

• CIS returns must now be submitted online—manual spreadsheets are no longer valid
• Zipptax helps streamline CIS compliance, including subcontractor onboarding and RTI integration

 For Tech Startups and Agencies:

• Use Zipptax’s CEST review services to classify contractors legally
• Align payroll software with updated thresholds and statutory pay modules

 Case Study Snapshot: How Zipptax Helped “Altitude AV Ltd”

“Altitude AV Ltd”, a 12-person audiovisual firm, faced:

• IR35 confusion with hybrid contractors
• Missed PSA agreement deadline last year
• Manual CIS submissions triggering late filing penalties

After signing up with Zipptax:

• Their IR35 contractor files were reviewed and corrected with SDSs
• Their PSA was submitted on time using our templated agreement guide
• We migrated their CIS system and coached their admin assistant on monthly submissions

 Result: They saved over £3,100 in fines and overpaid NICs in Q1 2024 alone—and haven’t had a compliance issue since.

 Mid-Year Employer Compliance Checklist (July 2024)

✅ Have you verified your NICs relief eligibility for new hires (veterans)?

✅ Have you transitioned CIS reporting to the new HMRC portal?

✅ Are all contractors IR35 assessed and issued SDSs with documentation?

✅ Is your payroll software updated for student loans + statutory pay?

✅ Have you reviewed NMW compliance for all staff under 23?

✅ Have you considered filing your PSA before 5 July?

If not sure on any of these, Zipptax can help with a free initial audit.

 Why Employers Choose Zipptax

•  We stay ahead of HMRC changes so you don’t have to
•  We prepare filings, relief claims, and SDS letters for you
•  We explain compliance steps in plain English—no legal jargon
•  We track deadlines and reminders so you’re never caught off guard

From construction to care homes, ecommerce to trades—we’ve got your back.

FAQs:

 1.What is the NICs relief for hiring veterans in the UK?

Employers can now claim 12 months of Class 1 secondary NICs relief for hiring eligible military veterans in their first civilian job. The relief applies to earnings up to £50,270 and must be claimed through Real Time Information (RTI) payroll submissions.

 2.What changed about CIS returns in April 2024?

HMRC now requires all Construction Industry Scheme (CIS) monthly returns and subcontractor verifications to be submitted through its new online CIS portal. Paper filings and outdated platforms are no longer accepted as of April 2024.

 3.What is the 2024 deadline for PAYE Settlement Agreements (PSA)?

Employers must submit their PSA request by 5 July 2024 and pay any tax/NIC liabilities arising from reportable employee benefits by 22 October 2024.

 4.How does IR35 affect employers in 2024?

Employers hiring contractors must assess whether the engagement falls inside or outside IR35. Use HMRC’s CEST tool, issue a Status Determination Statement (SDS), and withhold tax/NICs if the contractor is deemed an employee for tax purposes.

 5.What are the 2024–25 statutory payment rates?

As of April 2024:

• Maternity, paternity, and shared parental pay = £184.03/week
• Statutory sick pay (SSP) = £116.75/week

Employers must update payroll systems accordingly to avoid underpayment.

 6.What are the current minimum wage rates in the UK (2024)?

From 1 April 2024:

• Workers aged 21+ earn £11.44/hour
• Ages 18–20 earn £8.60/hour
• Apprentices and under 18s earn £6.40/hour

All employers must comply or face financial penalties and potential name-and-shame listing.

 7.What is a Time to Pay arrangement?

If a business is unable to meet its tax payment deadline, it may be eligible to arrange a “Time to Pay” plan with HMRC. This allows for tax debts to be paid in instalments with interest—but may prevent penalties if arranged before default.