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
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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:
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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: •
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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
• Code
• Tax Bands
BR
20%
HR
40%
Additional 50%
£8105
810L
£1 - £34,370
£34,371 - £150,000
£150,001 and above
What's New for 2012/13 – National
Insurance
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Lower Earnings limit
Primary Threshold - E/E
Secondary Threshold - E/R
Upper Accrual Point
Upper Earnings limit
£107
£146
£144
£770
£817
Other Changes
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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
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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