Preparing for end of the year payroll in your business

Preparing for end of the year payroll in your business

April 11, 2019 | 1year | Business Software

Several things can be done to guarantee you are fully set for a smooth end of year process.

An employer running a payroll must:

• Report to HMRC exactly on the tax year ending (5 April 2016), and give their workers a P60
• Prepare for the fresh tax year that begins on 6 April, 2016.

What you need to do:

• Your last Full Payment Submission (FPS) of the year must be forwarded on or before your worker’s last 2015-16 payday
• The payroll software must be updated from 6th April
• The worker’s payroll information must be updated for the next year, starting from 6 April
• Forward the most recent Employer Payment Summary (EPS) for the year - if need be, latest by 19th of May.

Note: The FPS 'Final Submission' forwards your worker’s most recent 2015/16 payment details to HMRC plus your end of the year statement. To forward the Final Submission, just mark the Final Submission option while sending your employee’s most recent FPS of the year to HMRC.

The HMRC online closes on 19 April for year 2015/16 modifications.
You will have to start making use of the updated payroll software come 6 April 2016 or later, in order to process pays. Conversely, we suggest you upgrade to version 2016 once it becomes available in late March. You don’t have to wait till after you process the last 2015/16 payment, or till after 6 April, or even until after you commence the new payroll year before you upgrade.

You must notify HMRC concerning a reduction to the charges you will pay them for the last month of the year (this is independent of the Employment Allowance). For instance, for recoverable amounts with regards to payments for SPP, SMP, OSPP, ShPP, SAP, ASPP or any other recoverable amounts like NICs holiday claim and CIS deductions removed from your payments as a sub-contractor in case your company is a limited company.

You only have to forward an Employer Payment Summary (EPS) should:

• You forgot to send the Final Submission statements on your most recent Full Payment Submission for the year.
• failed to pay anyone in the concluding period of the tax year.
• You forward your last FPS in the early hours and did not pay anyone for at least 1 complete tax month in the just concluded tax year.

If you need help upgrading your Payroll software, get in touch with Active Office today.