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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
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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.
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