In 2022 we ran an ESS campaign to educate employers to report ESS benefits given to their employees.
Employers are required to report these benefits to us (through payroll returns) and they have an option to not deduct PAYE tax. Most employers take this option and the responsibility to pay the tax is on the employee.
Employers have now provided this information for the 2019, 2020, 2021 and 2022 income years through voluntary disclosures. All payroll returns have been amended which has updated the income profiles of employees showing ESS with no PAYE tax paid.
From 16 March, we will start to issue around 1400 letters to employees who have received an ESS benefit from an employer and now may have a tax obligation.
If you have a client with the income tax mail redirect, the letter will be sent to you.