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HMRC updates

Recording tax and national insurance – preferential dividends

There may be instances in your work where you need to record the tax and national insurance payable on a preferential dividend paid to an insolvent entity’s former employees, for example salary arrears from before the date of insolvency, or holiday pay.

HMRC requests that you help to ensure these payments are allocated correctly by setting up a new PAYE Scheme. Read how to do this, and further information, in the full update.

Update: Introduction of electronic banking for Insolvency Practitioners making dividend payments

HMRC has issued clarification on its electronic banking process for Insolvency Practitioners making dividend payments, in response to some uncertainty on the process that it has become aware of. Read the update here.