The CWG2 (Employer further guide to PAYE and National Insurance contributions) has been updated a number of times this tax year:

  1. First published 22 February 2020
  2. Updated 06 April 2020
  3. Updated 21 April 2020
  4. Updated 28 April 2020

On 14 May 2020, it was updated again.  I will talk about the update but I think it is worth drawing your attention to the comment at the top of the CWG2 about its purpose:

This guidance gives more detailed information and covers some less common situations

Payroll professionals need accurate and detailed guidance at the start of the tax year.  This year in particular there has been so much to digest and so much additional work, continual updates to guidance is tricky to stay on top of. I hope these updates are helpful to summarise what to look out for!

Update 14 May 2020

The updated version was accompanied by the explanation:

Section 4.7 of the 2020 to 2021 version of CWG2 has been updated.

Section 4.7

This is the section ‘Workers providing their services through intermediaries’.  This has been substantially rewritten, probably for the better.  The main changes are as follows:

  • The 14 May 2020 version clearly says that the IR35 / off-payroll reforms in the private sector apply from April 2021. The 28 April 2020 updated version corrected the error that had appeared in previous versions by simply removing reference to it altogether
  • The 14 May 2020 version now makes reference to the fact that the Off-Payroll Worker marker has to be ticked for engaging public sector organisations. The updated version says that this applies ‘for each instance of the individual’s pay cycle going forward whilst the off-payroll working rules apply’.  If it is set incorrectly, the updated version says that the Full Payment Submission (FPS) can report this in a subsequent submission
Are we there yet?

For the last time in 2020/21 hopefully, make sure that you have downloaded and work to the latest ‘detailed’ CWG2 guide:

  • Version issued 22 February 2020 (the first one for 2020/21) DO NOT USE
  • Version updated 06 April 2020 DO NOT USE
  • Version updated 21 April 2020 DO NOT USE
  • Version updated 28 April 2020 DO NOT USE
  • Version updated 14 May 2020 – DO USE!

 

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