Preparing for Payroll Year End and beyond ...
The introduction of RTI in April 2013 will bring important changes to the way employers submit PAYE information to HMRC, and effectively means the end of Payroll Year End as we know it. However, unless you're currently part of an RTI pilot scheme, there is still one more PAYE year end to go and existing rules and methods still apply.
Here are five key PAYE year end tasks you will need to complete before and after the tax year ends on 5 April.
Finalise your payroll records for the tax year
You'll need to finalise the figures (ie total earnings, tax, NICs, statutory payments, etc) on each employee's payroll record. If you've maintained a P11 form or similar record, the figures contained will help you complete your Employer Annual Return. Jonathan Dowden, Sage Payroll Product Manager, explains: "The calculations are done automatically if you use Sage payroll software. You can finalise your payroll records after the last payday before 5 April."
Complete and file your Employer Annual Return
The Employer Annual Return consists of a P14 form for each employee and a P35 form, which summarises year-end payroll totals for all your employees. "HMRC must receive your Employer Annual Return by 19 May," explains Jonathan. "You can be charged a penalty if you’re late," he warns. "Most employers must file online. To do this, you must first have registered to use HMRC’s PAYE online service. That can take up to a week, and you could incur penalties if you file late, so if you’re a new employer and need to register – don't leave it too late". Sage Payroll makes submitting these returns to HMRC simple in only a couple of clicks.