During the coronavirus pandemic, HMRC extended the deadline for submitting Appendix 7A and Appendix 7B returns and allowed the returns to be submitted by email. However, for 2020/21, the default arrangement will be to submit the returns by the normal 31 March deadline following the end of the tax year in paper format.
Businesses can operate modified payroll reporting for employees coming to or leaving the UK. These modified arrangements allow affected employers to apply to pay national insurance contributions (NIC) and complete a PAYE full payment submission at the normal time, using a best estimate of the earnings and benefits. Following the end of the tax year, they need to submit a minor correction to the amount of Class 1 or Class 1A NIC to not attract a penalty.
HMRC’s instructions, shared via its Joint Forum on Expatriate Tax and National Insurance contributions are as follows:
- Appendix 7A returns should be filed by paper and sent to the address shown on the gov.uk page.
- If employers are not able to file a return via paper due to the pandemic, an electronic copy can be uploaded to HMRC’s Shared Workspace.
- In the event that employers cannot file a paper return due to the pandemic, and they do not have access to HMRC’s Shared Workspace, an Appendix 7A National Insurance contributions settlement return (NSR) can be submitted via email: email@example.com. The subject heading of the email should clearly identify it as “App7A NIC Settlement Return”. Please note that this remains a temporary email address to assist with the filing of this year’s Appendix 7A NSRs only, while the pandemic continues to affect the way we work. It should not be used for anything that isn’t related to Appendix 7A NSRs. Anything received via this mailbox that is unrelated to Appendix 7A NSRs will be deleted, without being opened or acknowledged.
- Appendix 7B returns should be filed by paper and sent to the address shown on the gov.uk page.
- In the event that employers are not able to file a paper return due to the pandemic, an Appendix 7B NSR can be submitted via email: firstname.lastname@example.org.
- The subject heading of the email should clearly identify it as “App7B NIC Settlement Return”. Please note that this is a temporary email to assist with the filing of this year’s Appendix 7B NSRs only, while the pandemic continues to affect the way we work. It should not be used for anything not related to Appendix 7B NSRs. Anything received via this email that isn’t related to Appendix 7B NSRs will be deleted, without being opened or acknowledged. HMRC is currently reviewing security procedures for this mailbox.
- Please note that HMRC’s Shared Workspace is not in use for filing of Appendix 7B returns at this stage.
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