New year payroll tasks every employer should know about
Since our Payroll manager Nigel Stapleton joined CBR Solutions in 2012 we’ve gone from running a Payroll bureaux within the accounts department into an effective standalone business product used by over 75 customers.
At this point in the year, with April the 5th fast approaching, we asked if he could give an insight into Payroll tasks and issues that your business or organisation needs to make sure you’ve got covered. What do you need to submit to HMRC? What changes should you be aware of? Are there any resources to help you with your tasks? Find all this information below.
What payroll tasks do employers need to get done before april?
For you as an employer the end of the tax year means that you need to run your last payroll; this is any payroll with a pay date on or before April 5th. When you send your full payment submission for your last Payroll to HMRC (as you do each month), you will need to put a final submission field on it.
Occasionally, when there is an adjustment to the payment made against the full payment submission, you will still need to send an Employer Payment Summary (EPS) as well. The EPS is particularly relevant for companies that can reclaim part of statutory payments such as Statutory Adoption Pay, Statutory Maternity Pay (SMP) or for a period where you haven’t paid anyone at all.
These returns tell HMRC that you’ve finished submitting all the years’ details. They also show the figures that will be reported on the P60 forms which you will be sending to your employees.
These returns need to be sent to HMRC by April 19th.
Do the Payroll rules ever change?
There are two changes that HMRC often makes at the start of the year;
The first is to change the threshold which affect how National Insurance and Tax is calculated, the second is that, as an employee, you get a new tax code.
This is because the traditional single person’s tax allowance is often raised by the government in the preceding budget.
You may see your tax code increase by 50 points (as it did in 2017) which means you’ve got another £500 worth tax-free pay in the year.
Keeping abreast of changes like this is something CBR Business Solutions undertake on behalf of our customers. We will also receive notification from HMRC for people who have another tax code change beyond that – and then we implement the code as instructed.
Occasionally there are other changes – for example, In April 2018 and April 2019 the minimum pension contributions payable under auto enrolment will be increasing and all employers are affected.
Read my next blog where I will explain to you the contributions you and your employees need to pay and what needs to be done to ensure your payroll is compliant.
What Payroll related resources are available?
We use SAGE to undertake both own and our customers’ payroll – they are an important resource.
To get ready for the next tax year, update their payroll system to make sure all the new thresholds are ready to go. This ensures that your April pay will be calculated correctly and you’ll have the correct tax free allowance. The UK government issues statements of fact, but they don’t issue any guides as to how to meet their requirements – Your Payroll system supplier will help do that for you as part of the relationship you have with them.
Another place to look up information is the gov.uk website, implemented by the UK government over the last ten years to bring together resources from all government departments like HMRC and DWP. You can look up the current tax tables, National Insurance and current thresholds on the payment of statutory maternity pay as well as anything to do with employment law in general.
Do you need help with your Payroll tasks?
Our Payroll service is offered to customers on a two tier basis; For some customers we will make payments on their behalf and for other customers we give them all the relevant information for them to facilitate making their own payments.
If your organisation would like to discuss payroll issues or solutions contact us to discuss your payroll needs.