If you operate PAYE you should make sure you are prepared for all the tasks that need completing around the end of the tax year on 5 April 2011.
For the second year almost all employers have to submit their P35 annual return and P14s to HMRC online and paper forms can no longer be used. The only exceptions to this are:
- Employers entitled to operate the Simplified Deductions Scheme for PAYE for personal and domestic employees (unless they have previously received a payment for filing online);
- Practising members of religious groups whose beliefs do not allow them to use electronic communications; and
In some cases, employers who employ someone to provide domestic or personal care or support services at or from the employer’s home.
Top tips for a terrific year end
1. Register online now – if you have not previously filed PAYE forms online. You can register at www.hmrc.gov.uk using the Employers link. The registration does not take long but you must leave enough time to ‘activate’ the service using the code given to you by HMRC. This code has to be posted and can take up to a week to arrive.
2. Stock up on stationery – make sure you have enough P60s. If necessary you can order them from HMRC, either online or by phoning 08457 646 646.
3. Make sure you have each employee’s correct home address. It is easy for an employee to forget to tell payroll if they have moved during the year, so you could email everyone to check.
4. Watch out for common online filing problems. These include muddling up your user ID, password and activation code, the incorrect format of employees’ NI numbers and using prohibited characters in names such as commas.
5. Back up your data regularly and in at least two places. It is more important than ever at year end time.
6. Tell HMRC if you do not need to submit an Employer Annual Return. This will be the case if you were not required to maintain a form P11 Deductions Working Sheet for any employees during the tax year.
7. Remember the important dates or you could face a penalty. The key deadlines for the year ending 5 April 2011 are:
19 April - Postal payments of outstanding PAYE tax and Class 1 NICs must reach your HMRC Accounts Office.
22 April - Cleared electronic payments of outstanding PAYE tax and Class 1 NIC must reach HMRC bank account.
19 May - Employer Annual Return (P14s and P35) must be filed.
31 May - Each current employee must be given a form P60.
6 July - Expenses and benefits annual return (forms P11D, P9D and P11D(b)) must be filed (if applicable). Copies must also be given to your employees.
19 July - Postal payments of Class 1A NICs must reach your HMRC Accounts Office.
22 July - Cleared electronic payments of Class 1A NICs must reach HMRC bank account.
8. Get ready for the new tax year by making sure you file carefully any new coding notices and if you use payroll software, install the update and clear down the figures for the previous year.
Alternatively you could outsource your payroll to Hazlewoods Payroll Services and we could do all this for you.
For further information, please contact Roy Thorogood on 01452 634800 or firstname.lastname@example.org