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	Payroll Perfection’s Tips for a perfect Payroll Year End 2012 Tip 1: Register Online Now! All companies must submit their Payroll Year End Return P35 and P14s to HMRC online. If you have not previously ever done this then you will need to register online. Register using www.hmrc.gov.uk follow the link to Employers PAYE online. Alternatively Payroll Perfection could submit your Annual Return on your behalf, if you have already outsourced your payroll to us. Tip 2: Order the Stationery. Order your P60s from HMRC - you can do this by phone: 08457 646 646 or online: www.hmrc.gov.uk/paye/forms-publications.htm. Order enough P60s for all of your employees including leavers, plus 5 or so extras in case of printer mishaps but stay green! P60s for leavers will be printed but do not have to be given to leavers within the tax year. Tip 3: Check Codes. At this time of the year HMRC start issuing tax code changes - P9s - for the New Tax Year. The tax code changes may be sent by post or online. File them carefully as you will need them when setting up the new Payroll year. Not every employee will have a tax code change. Tip 4: Important Dates. The New HMRC Tax Year starts from 6th April 2011 and runs to 5th April 2012. The key dates are: 19th April 2011 - PAYE/NI due to HMRC for the tax year 2010/2011 19th May 2011 - Online Annual Return to be received by HMRC - P35 and P14s. 31st May 2011 - P60s to be given to all current employees - exclude leavers. 6th July 2011 - P9D and P11D forms to be submitted to HMRC (Benefits in Kind) 19th July 2011 - Class 1A NIC payments due. Enter all of these dates onto your diary system be it an electronic or paper diary - but make sure they are somewhere! If you miss a deadline you can be fined by HMRC. Tip 5: Staff Details Before you prepare the P35 submission it’s a great idea to send an email to all employees asking them to confirm their home address or at the very least advise you if they have changed their address in the last year. Payroll is usually forgotten when it comes to Change of Address notes! Tip 6: Print P11s Make printing P11s for each current employee part of the year end routine. There are two copies - PAYE and NI and these should be kept with your Year End payroll records. Tip 7: Print and Distribute P60s Print the P60s on the preprinted HMRC P60 stationery. The P60s should be given to all current employees before the 31st May 2011. Print a copy of each employees P60 on plain paper. The copies should be filed with the P11s above. Tip 8: HMRC Payments Reconciliation Add up all the columns in your Yellow Book or if you pay online use a spreadsheet to agree the PAYE and NI . Check that the totals agree by checking that they agree if you add them up across as well as downwards. Check that the total due to HMRC has actually been paid. Check that the total paid agrees to the total of your P35 from your payroll software. CIS deductions made from Sub Contractors will need to be included. Tip 9: Back Up Your Date. Unless you use a Payroll Bureau you need to make sure your data is backed up regularly. This is extra important for year end. Before commencing any Year End procedure make sure all your data is backed up in at least two different places. Tip 10: Submit your Year End Return. The Annual Payroll Return - P35 - is basically a summary of the PAYE and the NI which has been deducted from each employee, which together with the Employers NI is sent to HMRC each month. Double check that the P35 agrees to the totals in your Yellow Book or spreadsheet. Include on your return any CIS deductions made from Sub Contractors. If you do not use payroll software, and you use the HMRC online service be sure to diarise additional time as all new employees who started during the tax year will need to be added to the Online Employer Record. Choose a time when you can be sure that you will not have interruptions. Print and save all confirmations from HMRC when successfully submitted. Tip 11: Get ready for the New Tax Year If you use payroll software, install your software update and clear down the figures for the old tax year. •Upgrade all of your 647L tax codes to 747L. •All L codes need to be increased by 100. •Update all the tax codes you have received P9s for. This year the Personal Allowance increases from £6,475 to £7,475 if you are under 65. The new Tax Bandwidths have also changed: Basic Rate................. 20% .........Earnings from £7,475 to £35,000 Higher Rate............... 40% .........Earnings from £35,001 to £150,000 Additional Rate........ 50% .........Earnings from £150,001 and above This means that you can earn £143 per week and £622 per month before being liable for PAYE. The National Insurance rate changes from 11% to 12% but the threshold changes to £139.00 before NI becomes liable. P46 - the form is changing from April 2011 so be sure to download and use the revised form. If you would like to make your payroll perfection, without all the hard work, or if you would like to sign up to receive these tips each year, please send us an email or give us a call. . Back to top ^

Payroll Perfection’s Tips for a perfect Payroll Year End 2012

Tip 1: Register Online Now!

All companies must submit their Payroll Year End Return P35 and P14s to HMRC online. If you have not previously ever done this then you will need to register online. Register using www.hmrc.gov.uk follow the link to Employers PAYE online. Alternatively Payroll Perfection could submit your Annual Return on your behalf, if you have already outsourced your payroll to us.

Tip 2: Order the Stationery.

Order your P60s from HMRC - you can do this by phone: 08457 646 646 or online: www.hmrc.gov.uk/paye/forms-publications.htm. Order enough P60s for all of your employees including leavers, plus 5 or so extras in case of printer mishaps but stay green!

P60s for leavers will be printed but do not have to be given to leavers within the tax year.

Tip 3: Check Codes.

At this time of the year HMRC start issuing tax code changes - P9s - for the New Tax Year. The tax code changes may be sent by post or online. File them carefully as you will need them when setting up the new Payroll year. Not every employee will have a tax code change.

Tip 4: Important Dates.

The New HMRC Tax Year starts from 6th April 2011 and runs to 5th April 2012. The key dates are:
19th April 2011 - PAYE/NI due to HMRC for the tax year 2010/2011
19th May 2011 - Online Annual Return to be received by HMRC - P35
and P14s.
31st May 2011 - P60s to be given to all current employees - exclude leavers.
6th July 2011 - P9D and P11D forms to be submitted to HMRC (Benefits
in Kind)
19th July 2011 - Class 1A NIC payments due.

Enter all of these dates onto your diary system be it an electronic or paper diary - but make sure they are somewhere! If you miss a deadline you can be fined by HMRC.

Tip 5: Staff Details

Before you prepare the P35 submission it’s a great idea to send an email to all
employees asking them to confirm their home address or at the very least advise you if they have changed their address in the last year. Payroll is usually forgotten when it comes to Change of Address notes!

Tip 6: Print P11s

Make printing P11s for each current employee part of the year end routine. There are two copies - PAYE and NI and these should be kept with your Year End payroll records.

Tip 7: Print and Distribute P60s

Print the P60s on the preprinted HMRC P60 stationery. The P60s should be given to all current employees before the 31st May 2011. Print a copy of each employees P60 on plain paper. The copies should be filed with the P11s above.

Tip 8: HMRC Payments Reconciliation

Add up all the columns in your Yellow Book or if you pay online use a spreadsheet to agree the PAYE and NI . Check that the totals agree by checking that they agree if you add them up across as well as downwards. Check that the total due to HMRC has actually been paid. Check that the total paid agrees to the total of your P35 from your payroll software. CIS deductions made from Sub Contractors will need to be included.

Tip 9: Back Up Your Date.

Unless you use a Payroll Bureau you need to make sure your data is backed up regularly. This is extra important for year end. Before commencing any Year End procedure make sure all your data is backed up in at least two different places.

Tip 10: Submit your Year End Return.

The Annual Payroll Return - P35 - is basically a summary of the PAYE and the NI which has been deducted from each employee, which together with the Employers NI is sent to HMRC each month. Double check that the P35 agrees to the totals in your Yellow Book or spreadsheet. Include on your return any CIS deductions made from Sub Contractors. If you do not use payroll software, and you use the HMRC online service be sure to diarise additional time as all new employees who started during the tax year will need to be added to the Online Employer Record. Choose a time when you can be sure that you will not have interruptions. Print and save all confirmations from HMRC when successfully submitted.

Tip 11: Get ready for the New Tax Year

If you use payroll software, install your software update and clear down the figures for the old tax year.

•Upgrade all of your 647L tax codes to 747L.
•All L codes need to be increased by 100.
•Update all the tax codes you have received P9s for.

This year the Personal Allowance increases from £6,475 to £7,475 if you are under 65. The new Tax Bandwidths have also changed:
Basic Rate................. 20% .........Earnings from £7,475 to £35,000
Higher Rate............... 40% .........Earnings from £35,001 to £150,000
Additional Rate........ 50% .........Earnings from £150,001 and above

This means that you can earn £143 per week and £622 per month before being liable for PAYE. The National Insurance rate changes from 11% to 12% but the threshold changes to £139.00 before NI becomes liable.

P46 - the form is changing from April 2011 so be sure to download and use the
revised form. If you would like to make your payroll perfection, without all the hard work, or if you would like to sign up to receive these tips each year, please send us an email or give us a call.

Back to top ^