The 6th April soon comes around after the tax return season is over. But have no fear for PBT is here. We are experts in payroll and so we have all the advice and guidance you need. We have put together a checklist to make sure you have everything you need to survive payroll year end.
Send your payroll report
An employee's last day in the tax year usually lands at the end of March and this is the time that you will need to send your final payroll report to the HMRC. We know it can be a nerve wracking time sending your final Full Payment Submission (FPS) to the HMRC but keep calm and make sure you put ‘Yes’ in the ‘Final submission for year’ field in your payroll software.
Update your payroll records
From 6th April (the start of the new tax year) you will need to update your employees payroll records. You should have already received a reminder from your payroll software to update your employees tax codes. You will receive either a P9T form or a P9X form;
A P9T form is for any employees who need a new tax code.
A P9X form is for any general changes for employees whose tax code ends with an ‘L’.
The instructions within the forms should be self explanatory, so just follow them through.
Update your payroll software
Once you have updated your employee records you will also need to update your payroll software. Whatever software you are using, you should be provided with instructions (usually when you login) on how to update your software. The purpose of this update is to allow the software to use the latest rates and thresholds for Income Tax, National Insurance and student loan repayments. Once these have been updated, these will be set for the rest of the year.
As part of the payroll year end process you are required to provide your employees with their P60s by 31st May. The information found in a P60 is very useful as it summarises pay details for your employees, including total salary and deductions for the year.
P60’s are required for evidence of tax paid on salary, which can help with:
Send your employee expenses and benefits report
Although this is not required at year end, we advise adding this to your year end procedure, but in any case employee expenses and benefits must be reported to the HMRC by 6th July. The form required is P11d. Dependant on the software you use it may have the ability to send a report of this to the HMRC.
Expenses and benefits can cover a wide range of things from company cars to health insurance and travel/entertainment expenses to childcare. It is important to ensure you report on all forms of benefits and expenses that your employees receive.
Once you have analysed these figures you must complete the P11d(b) form. As a result you will pay Class 1A National Insurance which is due on the taxable expenses and benefits that have been provided to your employees. Don’t forget payment must reach the HMRC before 22nd July!
So that’s it. If you need any help or assistance with any of the above, get in touch with our experienced team who would be happy to help!