Payroll Year End is on April 5^th ...as if there wasn’t enough to do already!

There can be a great deal of pressure at this time of year in preparation for the Payroll Year End (PYE). It is very important to be fully compliant and there are still the day-to-day business tasks and activities.
The following tips will help:

If you aren’t confident about your software delivering the solution you need we can have you up and running with Sage Payroll quickly. We’ve done just that recently for a client and migrated data from an older system in readiness for PYE.

Know Your obligations as an employer
Most employers will need to submit P35 and P14 forms online to HMRC. These need to be submitted before 19 May to avoid penalties. Employees still in your employment as of 5 April 2012 should receive P60 summaries by 31 May.
Register as an employer with HMRC by email or by telephone
Familiarise yourself with PAYE rules visit www.hmrc.gov.uk/paye

Automate where possible
Every figure you submit for individual employees will need to be reconciled with your annual totals for tax, National Insurance and other deductions. Your payroll software can carry out these checks for you throughout the year. Software can save extra work at year end by completing all the forms and filing them electronically to HMRC online.

Be ready for the April 5th
Have you planned time and resources to prepare for your PYE procedures?
Have you enough stationery ordered. Is the P60 stationery compatible with the tax year you're processing (you cannot use P60 forms from the last tax year)
Check that your software is compatible with the tax year you're processing to ensure you are legally compliant.
Check that you have a full tax year payment history for your employees i.e. 52 weeks or 12 months.
Check that you're registered with HMRC for online submissions.

Pay the Tax
Having compiled the amount of tax and National Insurance that have already been paid during the year, you need to calculate the total amount due to HMRC for the year. Any amount outstanding must reach HMRC by 19 April (or 22 April if paying electronically). Make sure to allow enough time for postal and electronic repayments to reach the taxman in time or you may be liable for interest payments.

Don't put it off if you have problems
Payroll, benefits and expenses rules are complex. Make sure you have sourced expert help in advance – calls out of the blue for help may find many professionals busy at this time of year – or expensive.