Payroll Update and Payroll Year End

Sharon Mortimer – Agent Account Manager

What we will be covering today

• End of Year Process

• What's New for Employers for 2012/13

Online Filing – Employers Annual Returns

• Exemptions

• Filing date

• Nil returns

• Completing P14’s – common errors

• Form P60

• Benefits and Expenses

Who is exempt from online filing

• Employers operating HMRC’s simplified deductions scheme for domestic employees

• Exemptions on religious grounds• Employers who employ someone to provide care

or support services at or from their own home• Limited Companies filing a return solely to

submit an entry in box 28 of P35 (CIS Deductions suffered)

Filing date

• 2011/12 return must reach us by 19th May 2012 or penalties may be applied

• There will be no period of grace ESCB46 came to an end on 31/3/11

• Acceptance and rejection messages can be seen at www.businesslink.gov.uk/payeonline

Nil Returns

No Employer Annual Return (P35 and P14’s) for 2011/12 tell HMRC by:

• Structured Email (one version for employers and one version for agents on behalf of their clients)

• Phone the Employers Helpline

• Write to the Employer Office

Other things to consider

• Avoid Common Errors

• Test your submission

• P60’s can be provided to employees electronically

Registration

• Before you can file your EOY return online you need to register www.hmrc.gov.uk.

Sending P14s and P35 online from the Basic PAYE Tools

Completing End of Year PAYE online for employers – a reminder!

Benefits and Expenses forms 2011/12

Completing and filing online using: -

• Commercial Payroll Software

• Online returns and forms PAYE Service

• Completing forms using Basic PAYE Tools

• Electronic Media (Floppy Disk)

Deadlines & Penalties

• Employer Annual Return (P35 & P14)

• Expenses & Benefits: Form P11D(b)

What's New for 2012-13 – Income tax

• Personal Allowance £8105• Code 810L• Tax Bands

BR 20% £1 - £34,370

HR 40% £34,371 - £150,000

Additional 50% £150,001 and above

What's New for 2012/13 – National Insurance

• Lower Earnings limit £107

• Primary Threshold - E/E £146

• Secondary Threshold - E/R £144

• Upper Accrual Point £770

• Upper Earnings limit £817

Other Changes

• Tax Code Change• Student Loan update• New Statutory Payment Rates• Statutory Maternity Pay (SMP) £135.45 per week• Ordinary Statutory Paternity Pay £135.45 per week• Additional Statutory Paternity Pay £135.45 per week• Statutory Adoption Pay (SAP) £135.45 per week• Statutory Sick Pay (SSP) £85.85 per week

Payment

• There are still a significant number of electronic payments not automatically allocated to the correct place/account/period each month. So how do we get it right?

• Reference Checker Tool

Payment continued

• Don’t pay your PAYE and NIC separately• Use the correct HMRC Bank Account Details• If you pay with an HMRC payslip make sure you

use the correct period payslip.• 22nd April 2012 is a Sunday!• Faster Payments• Paying PAYE late payment penalties• All large employers are required to pay

electronically

Who and what late payment penalties apply to

• Monthly, quarterly or annual PAYE (Pay As You Earn) • Student Loan deductions • Construction Industry Scheme (CIS) deductions • Class 1 National Insurance contributions (NIC’s) • Annual payments of employers' Class 1A and Class 1B

NIC’s • Determinations made by HMRC where it appears that

there may be further tax payable - for example under Regulation 80 of the Income Tax (Pay As You Earn) Regulations 2003

• Decisions under Section 8 of the Social Security Contributions (Transfer of Functions, Etc) Act 1999 - for example about a person’s liability to pay NIC’s and the amount payable

Pensions

• State Pension Age Alignment• Changes to tax relief on pension

contributions – Annual allowance reduced to £50,000 for 2011/12

• Soft landing for defined benefits scheme for 2011/12 time limit for notification extended to 6th July 2013 (extra 12 months)

• Reminder – Workplace Pensions Reform

Any Questions