So, the 5th of April looms and for people like me (and those running their own payroll) that means one thing. PAYE Year End!
In previous years, there would have been a mad scramble to ensure clients complete the required declaration for PAYE year end, and to get it back into the office with time enough left to completion payroll and filing with HMRC.
Whilst Real Time Information (RTI) was a huge change in payroll processing in April 2013, from this payroll year end is now much simpler and less painful for both bureaus and employers.
Regardless of what software is used, a field name ‘Final Submission for Year’ needs to be selected prior to the final Full Payment Submission (FPS) of the year being sent to HMRC. This indicates the finalisation of payroll for the year.
If this is missed, and the FPS is sent without this field being ticked, an EPS can be sent. There will be a ‘Final Submission for the Year’ field available within the EPS and this will do the job of finalising your payroll.
You’ve got until the 19th of April to send any amendments and your ‘Final Submission for the Year’ confirmation. If an error is found after the 19th and an amendment must be made, or an oversight means you haven’t sent your FPS you will need to send what is called an Earlier Year Update (EYU)
As ever, employees need to be provided with a P60. This can be done electronically, with a PDF being sent to each employee. This needs to be done by 31st May but as this is now an electronic process it’s not the time-consuming job as in previous years of printing and distributing P60’s to employees.
If you have been part of the Payroll Benefits in Kind scheme you have until the 6th of July to report. You must pay any class 1A National Insurance due on taxable expenses and benefits by the 22nd of July, or the 19th if you’re paying by post.
Once year end is out of the way and you’re certain everything is done correctly, it’s time to begin to look forward to the year ahead.
The new year of 2017-18 as every brings within it new tax codes and these must be in place prior to the first payroll of the new year being run. HMRC issue a document called a P9X which clearly lays out how tax codes will change from 6th April, and what should be done to the more unusual tax codes that end in L, M, and N. A link to the document is found below.
HMRC P9X – Tax Codes to Use from 6th April 2017
Once your tax codes are updated, and you’ve actioned any additional tax code notifications from HMRC you’re ready for 2017/18.
The link to the area within HMRC’s website that gives more detail on year end can be found below:
www.gov.uk/payroll-annual-reporting/overview
And one further consideration…
… the National Living Wage increases for all workers on the 1st of April. You’ll need to ensure that your employees are being paid the correct rate for their age. The table below gives ages and pay rates for all employees.
| Date | 25 & over | 21 to 24 | 18 to 20 | Under 18 | Apprentice |
| 1 October 2016 (current rate) | £7.20 | £6.95 | £5.55 | £4.00 | £3.40 |
| 1 April 2017 | £7.50 | £7.05 | £5.60 | £4.05 | £3.50 |
Whilst year end is much simpler for those of us that have been through the pain of getting those pesky declarations into the office and posting out P60’s to clients by the dozen, it can seem a little daunting if you’re new to payroll as an employer and just want to run your business and do what you do really well.
We’re here to give you the space to enjoy what you do, making it grow and working with your new employees without having to worry about Auto Enrolment or getting your FPS in on time.
Call us in the office today on 01384 92 90 20 and we’ll be happy to discuss what you need and how we can be part of your success.
