Difference between revisions of "Payroll end of year"

Revision as of 14:13, 18 March 2022

Summary

This article explains what you need to do before, during and after the last period of your tax year.

Introduction

Please read through this guide now so you are aware of the processes to follow at the end of the tax year.

Update your Platinum system

A Platinum Software update containing updates to the 2021/2022 year end reports, including the ability to print P60's directly from Platinum will be ready for download from 14th March 2022.

This will not automatically move you into the new tax year. You will need to run an additional update once you have completed the year end processes.

Click here for instructions on downloading and running the update.

Complete Your Final Payroll Period

Complete and close your final payroll period for 2021-2022 and file your FPS as normal.

If you do not need to run a Week 53 please ignore this period. DO NOT close it. If you are unsure please contact HMRC to enquire if you need to run a week 53.

Week 53? - If your PAY DATE for week 52 falls on Tuesday 29th March 2022 you WILL need to run a week 53.. Process and close this period as usual before submitting the year end information.

WARNING: If there is some reason why you cannot file your FPS on or before the pay date for your final period, please note this MUST be submitted BEFORE 19th APRIL 2022 as HMRC do not accept 2021-22 FPS filings after this date.

Produce Year End Reports

Print a P11 for each employee to keep for your records. It is worth checking the figures shown before producing your P60's in case you need to correct any errors.
Print the Employee Tax NI and Summary report to provide a check against the Tax and NI paid by each employee over the year (this used to be referred to as the P35). Your final EPS Submission replaces the P35 in sending data to HMRC.
Print Employee P60's. These must be issued to all employees still in your employment at April 5th (they must be given to the employees by 31st May 2022).

Note: You may wish to print your P11 and P35 reports to PDF. We would recommend that if you do this, the files should be copied onto a memory stick or another machine for safe keeping.

Go to " Payroll End of Year Payroll Routines".

P11

Click 'P11 Current Tax Year - 2022' then click [Start] to print. This will print a P11 for every employee who has been included in your payroll for the year. Keep these for your records.

Employee Tax NI and Summary (P35 Substitute)

Click 'Employee Tax and NI Summary' then click [Start] to print.
Check the value in the 'NIC's' column on the Employee Tax and NI Summary agrees to the value in the 'NI Details' line under the 'Total Cont'ions' column on each employee's P11.
Check the value in the 'Income Tax' column on the Employee Tax and NI Summary agrees to the right hand value in the 'PAY Details''This Employment' on each employee's P11.
Check the total NIC's and Tax paid on the Employee Tax and NI Summary.
As a final check, you can log into your gateway account and check the HMRC totals against this report to ensure that they reconcile.

Contact your Platinum dealer or our support team on 0116 230 1500 or by using our website support contact page if you find any discrepancies at this stage and are unsure how to correct them.

P60 Forms

Click 'P60 End of Year Cert. - 2022'.
If you are printing the P60 forms onto paper select 'No' at the "Emailed copy?" prompt.
- To print to your default printer press <F2> or click [Start].
- To select an alternate print record e.g. '92 - Print to PDF' press <Alt+P>.
- Enter the print record to use then press <Enter> and click [Start].

If you wish to email your P60 forms you should ensure you already have the ability to email from Platinum and will need to add email addresses and passwords to your employee records. You may then use print record '87' to send a secure password protected P60 to the relevant employees. You should also select 'Yes' at the "Emailed copy?" prompt as this inserts some additional text into the P60 to indicate it is an email version of the form. For employees without an email address Platinum will print the P60 to your default print record for you to distribute by hand. If you require assistance with this option please Contact your Platinum dealer or our support team on 0116 230 1500 or by using our website support contact page.

Distribute the P60 forms to all employees still in your employment at the end of the tax year. Do not send them to any employees who have left your employment.

When you are happy with the reports you have produced above, you may move into the new tax year.

If you have multiple companies, please ensure you have carried out the above processes on 'ALL companies before following the steps to move into the new tax year.

Moving into the New Tax Year 2022/2023

A Platinum Software update containing the changes for the tax year 2022/2023 will be ready for download from 21st March 2022.

Take a backup of your system. You may use the standard Platinum backup option to do this but users must be out of the system and we suggest you label it "PAYROLL YEAR END 2021/2022. Contact your Platinum dealer or our support team on 0116 230 1500 or by using our website support contact page if you need further assistance.

Run a Platinum Update to move the payroll into the new tax year, this is done as follows:
- Download a Platinum Update following the instructions in the article.

As you are going through the update process, please make sure you read each information/message box carefully. If in doubt choose [No] or [Cancel] to abort the update. Contact your Platinum dealer or our support team on 0116 230 1500 or by using our website support contact page if you are unsure how to proceed at any stage of the update.

- Choose [No] at the first screen that says "Welcome to the Platinum Setup Wizard".
On the list of options, click "Move Payroll on to the 2022-2023 Tax Year" - a tick will appear in the little box.

It is NOT possible to roll back into the previous year so please ensure you have produced all the required reports before moving in to the new tax year.

Click 'Next'.
Read the warning box that appears and click [Yes] or [No] as appropriate ([No] will abort the update).

If you have not printed all your year end reports choose [No] to cancel the update. Return to those companies and finish the year end.

Once you confirm the update, your system will be moved forward into the new payroll tax year. This will also install any changes to Statutory Pay Rates, Student Loans, Department for Work and Pensions bands and National Insurance Bands as per HMRC guidance.

You MUST now check your employee tax codes and pension settings as per the sections below.

Altering Employee Tax Codes

Check each employee's tax code.

Amend any as per guidance from HMRC e.g. individual employee tax code notifications and/or standard increases to codes.
Ensure that you change the "Week1/Month1" flag to 'No' on any applicable employees unless instructed otherwise by HMRC.

Please see How do I change a tax code?.

Pension Schemes & Increasing Automatic Enrolment Contributions

2022/2023 Important change to Auto Enrolment Pensions Thresholds. Please Read!!

The Department for Work and Pensions (DWP) has reviewed the earnings thresholds for auto enrolment.

You should check with your pension provider which earnings limits are to be applied to your auto enrolment pension scheme and any other scheme you provide.

You should then check the pension scheme/s in place in your system to ensure they are set to apply the correct earnings limits 'before closing and submitting Period 1 of the 2022/2023 tax year.

Go to " " Reports & Settings Maintenance Options System Administrator Module Settings" Payroll Module Settings"
Scroll down to the "Pension Schemes" section.
At each scheme check and amend, if necessary, the "Employee limit" and "Employer limit". Your options are:

- 'None' - Calculate the pension on the whole pensionable gross.
- 'NI Lower Earnings' - Apply the NI Lower Earnings Limits (2022/2023 rates)
- 'NI Upper Earnings' - Apply the NI Upper Earnings Limits (2022/2023 rates)
- 'NI Both' - NI Qualifying Earnings i.e. NI Upper & Lower Earnings Limits (2022/2023 rates)
- 'DWP Lower Earnings' - Apply the DWP Lower Earnings Limits (2022/2023 rates)
- 'DWP Upper Earnings' - Apply the DWP Upper Earnings Limits (2022/2023 rates)
- 'DWP Both' - DWP Qualifying Earnings i.e. DWP Upper & Lower Earnings Limits (2022/2023 rates)

There have been no announced increases to Automatic Enrolment Contributions for 2022/2023 at this time.

Payslip Changes

Due to the increase in National Insurance for the 2022/2023 tax year, HMRC have requested that all employers print the phrase '1.25% uplift in NICs funds NHS, health & social care.' on their payslips.

We have amended the standard issued payslip reports to include this phrase and have also issued two new payslip formats to produce A4 payslips, which can be printed or emailed securely. See How do I email payslips to my employees? if you wish to add this option to your system or Contact your Platinum dealer or our support team on 0116 230 1500 or by using our website support contact page for advice.

If you have custom payslip reports please note that they will not automatically print the required wording so must be amended on a case by case basis. Please Contact your Platinum dealer or our support team on 0116 230 1500 or by using our website support contact page, prior to closing your first period in the new tax year, if this wording needs adding to your payslips.

Send the Final EPS to HMRC

The EPS must be submitted by 19th April 2022.

Go to " Payroll End of Year Payroll Routines".

Click [Employer Payment Summary]
Click " View or Submit Final 20**/** EPS".
At the bottom of the box is a drop down list of periods.
Select " 2021/2022 Final Submission for the year".

Check the values shown agree to the payments and deductions you made to HMRC for the 2021/2022 Tax Year.

You will need to calculate the total actual amount that you have paid to HMRC over the year relevant to your payroll. Do NOT just copy the figures from your P35 - check that the amounts you actually paid from your bank account agree to your reports. This allows you to check that you have included Student Loan deductions, Employment Allowance (if you are eligible) and any SMP/SAP/SPP compensation to which you may be due.

Fill in the relevant amounts in the fields available to you. You may press <F11> on any field for an explanation of the information shown.
- For most people, this will involve filling in the "NICs and Tax paid already" field based on the results of your check on payments made this year.
Leave any that don't apply set to £0.00.
Click [Next].
If you are taken to a [Checklist] tab, please answer the questions shown.
On the [Declaration] tab, please complete the required information.
Click [Submit] to send the final return to HMRC.

Please read the section below on submissions:

Types of Submission

When submitting you may choose to send a Test before submitting your live return.

Depending on which type of submission you are making, click the drop down key and choose [Live Submission] or [Test Submission].

TEST

You may return a test submission, which will be checked by the Inland Revenue to make sure some of the information is accurate. It will not completely verify your return but it will check details such as:
Whether the Employee Names, Tax Codes & NI numbers are correct and acceptable.
You will get a reply from this test, which will tell you if any details are inaccurate or need to be altered. If so please make the necessary changes. You may submit as many tests as you like.

If you have submitted a test return, please wait for the response to it before trying to submit your live return.

LIVE

Once you have sent the final live return, you will no longer be able to make any changes to the return. You must not submit more than one live return.
Click [Submit] to proceed.

What happens next

The software will now start to send your return. The time it takes to send and get a response to your return is entirely down to HMRC. You will receive a message on screen telling you if your return has been successful and you will receive an email to the address you specified.

If the submission appears to be taking a long time please click here. HMRC will post a message on their site if they are experiencing specific issues receiving submissions. If your return is taking a long time please be patient as HMRC is likely to be inundated with returns. You have until 19th April to return these figures but we would advise you don't leave it until the last minute!

If the return is taking a long time you may click [Stop]. The system will carry on awaiting a reply to the submission. You may continue to use Platinum as normal whilst this is in progress.

To check the status of the submission:

Go to " Payroll End of Year Payroll Returns Employer Payment Summary".
Choose " Check 2021/2022 EPS Status".

Unsuccessful Returns

If you have an unsuccessful return you will be given a response message telling you why the submission wasn't successful. Please read the message then try to resolve the problem. If you cannot resolve the problem please Contact your Platinum dealer or our support team on 0116 230 1500 or by using our website support contact page. Once a problem has been resolved you can submit the return making sure you fill in the declaration fields again.

After a Successful Return

If after a successful return you find you need to adjust any figures you may need to complete an Earlier Year Update. Platinum cannot submit an EYU so please use the service provided by the HMRC website.

If a P60 figure for an employee was £100.13 and should have been £10.13 your amendment would be £90.00.

If you experience any problems please Contact your Platinum dealer or our support team on 0116 230 1500 or by using our website support contact page for help with Platinum Payroll or contact HMRC for advice on incorrect figures and submitting an EYU.

Key Dates & Year End Check List

Key & Useful Dates

Payroll Week 53: If your pay date for week 52 falls on 29th March you WILL need to run a Week 53.

5th April: End of current Tax Year.

6th April: Start of next Tax Year.; Amendment of Employee Tax Codes.

19th April: Deadline for submission of final FPS; Deadline for submission of final EPS; Final Payment to the Inland Revenue for the Previous Tax year.

31st May: P60 forms must be given to employees by this date.

6th July: Deadline for P11D's to be submitted to the Inland Revenue.

Year End Check List

Download and run a Platinum Software Update.
Complete and Close Week 52/Month 12 (or WK53 if applicable).
Print all necessary reports:
- P11
- P35
- P60's
Take a backup of Platinum.
Download a Platinum Software Update - follow steps to move into the new tax year.
Update Employee Tax Codes.
Increase Pension contributions if applicable.
File final EPS - Employer Payment Summary (you may do this prior to moving into the new year).
Hand out P60's to all employees in your employment as at 5th April.

@@ Line 93: / Line 93: @@
 The  [https://www.thepensionsregulator.gov.uk/en/business-advisers/automatic-enrolment-guide-for-business-advisers/automatic-enrolment-earnings-threshold Department for Work and Pensions (DWP)] has reviewed the earnings thresholds for auto enrolment.
-You should check with your pension provider which earnings limits are to be applied to your auto enrolment pensions scheme and any other scheme you provided. You should then check the pension scheme/s in place in your system to ensure they are set to apply the correct earnings limits ''''before''' closing and submitting Period 1 of the 2022/2023 tax year.
+You should check with your pension provider which earnings limits are to be applied to your auto enrolment pension scheme and any other scheme you provide.
-Go to {{Menu|{{PlatinumModuleSettings}}|{{PR}}|Module Settings}}
+You should then check the pension scheme/s in place in your system to ensure they are set to apply the correct earnings limits ''''before''' closing and submitting Period 1 of the 2022/2023 tax year.
+* Go to {{Menu|{{PlatinumModuleSettings}}|{{PR}}|Module Settings}}
 * Scroll down to the {{DataPrompt|Pension Schemes}} section.
 * At each scheme check and amend, if necessary, the {{DataPrompt|Employee limit}} and {{DataPrompt|Employer limit}}. Your options are: