Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what the timetable is for completion of HMRC’s update of its basic pay as you earn tools to enable small employers who use HMRC’s software for their payroll system to implement changes to national insurance contributions that come into effect on 6 January 2024.

Following the Autumn Statement 2023 announcement of changes to National Insurance contributions (NICs), HMRC are working closely with software developers and employers to ensure they have a clear understanding of the changes and to ensure HMRC is doing everything necessary to facilitate delivery of those changes, including engaging regularly with the industry. Technical specifications were provided at pace following the announcement, and HMRC’s engagement with the industry to date has indicated that the majority of payroll software developers and employers will be able to make the changes on time. HMRC will continue to engage with the industry to monitor the progress being made to implement the changes, and any implications for the volume of customer refunds.

HMRC provided its assessment of the impacts of the changes on businesses via a Tax Information and Impact Note published alongside the National Insurance Contributions (Reduction in Rates) Bill. This is available on GOV.UK.

HMRC is confident that its own Basic PAYE Tools (for use by employers with 9 or less employees) will be updated in time, and the updated product is expected to be available to download via gov.uk by 6th January 2024.