Payroll procedures

Payroll procedures

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I am doing the year end payroll for the first time and would be grateful if I could clear up a few of my queries:

I am submitting the P14s & P35 online using th HMRC website.

Do I have to complete a P14 for every employee that has worked in the company during the tax year (i.e. including those who have left?) My current understanding is that I do.

I have had a quick look at the website and when I click on P14 under a particular employee, it asks me if I want to submit "Complete" or "Partial" - could someone explain what this means exactly?

I also have a few employees who left during March, but are included in the March payroll (i.e. their final pay). Do I issue a P45 at the final pay date (which is before the 5th April) and therefore do not have to issue them a P60? (My understanding is yes)

All remaining employees will be issued with a P60.

We are a small employer (i.e. less than 50 employees).

Are these the only forms I have to submit? I only have to give the employee the P60 (altho I am taking a photocopy of them all before I give them out) as the P14 covers the information HMRC requires?

If there is anything else I should be aware of, please let me know. I am aware the filing date is 19th May.

Replies (13)

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Euan's picture
By Euan MacLennan
24th Mar 2011 17:25

Some answers

Yes - you must complete a P14 for everyone who was employed at any time during the year, unless they were paid less than the NI LEL, but it may well be easier just to include them as well.

Complete/Partial refers to the submission of forms P14.  I am not sure what the HMRC website allows, but in theory, you can submit P14s in separate partial batches with a P35 covering the lot at the end.  I would input all your P14s and then do a complete submission.

The date on a P45 should be the date of leaving.  If they have left by 5th April (or by 31st March if it is a monthly payroll), you should certainly process them as leavers, issue and submit forms P45 and not issue a form P60.

Yes - the P35 and accompanying forms P14 are the only forms you have to submit to HMRC, unless you have not included P14s for employees paid under the NI LEL, in which case you will also need to submit a supplementary return form P38A.

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By kmc86
25th Mar 2011 09:14

Thanks, that what i thought but just wanted to be sure! We know what HMRC are like if you don't do it right!!

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By Richard Willis
25th Mar 2011 10:49

Don't forget

that you may also need to submit forms P11D for some employees, otherwise as Euan has stated.

Euan, can you post the name of your plastic surgeon; they seem to have done a tremendous job on you!

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By kmc86
25th Mar 2011 12:53

P11D's

There are no benefits, so do I just tick a box on the P35 to say so?

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By petersaxton
25th Mar 2011 17:37

P11Ds are not just for benefits.

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By Healthpay
30th Mar 2011 12:11

Why do it yourself?

 Sounds to me like you could do with a really competitve payroll agency specialising in small businesses........

[email protected]

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By lindaluvdup
30th Mar 2011 12:38

P11d

Print off a P11d with all the accompanying notes form HMCE website and sit down for a good read and think. It's not rocket science but does need careful consideration.

Just off the top of my head you need to consider company cars and fuel, mileages paid for business miles in private cars, health care insurance, accomodation expenses, relocation exp., assets used or transferred, expenses paid - amongst other things. Bottom line is looking for ANYTHING that HMRC may see as a benefit to any director or any employee earning over £8500pa  - you even have to declare things like hotels and travelling purely for business that a director or employee has paid and the company has refunded to them, unless you have a dispensation agreement with HMRC.

If I were you I'd a least have a good read and a chat with your accountant or other expert. In the long term I'd probably get myself on some decent courses.

-- Lin

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By pauljohnston
30th Mar 2011 12:42

make a small investment

Goto to www.moneysoft.co.uk and buy payroll manger.  This will solve almost all your questions and I am sure others will confirm how good the software is at £55

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By petersaxton
30th Mar 2011 12:55

Agree with John

Although John's post was a sales pitch I would agree with him. I do payroll for a lot of my clients and it saves them a lot of hassle without being too expensive.

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By NeilSeekings
30th Mar 2011 14:04

I agree use a payroll solution

Hi

There are lots of solutions out there some have been mentioned. I would suggest you look at an online payroll product that's wizard driven and will ask you the questions and do the work based on your answers.

As there has been a blatant pitch already that should allow me to give an alternative to keep things even.

www.mypaye.co.uk

Regards

Neil Seekings

MyPAYE

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By jovictoria
30th Mar 2011 14:09

Chartered Institute of Payroll Professionals

End of Year procedures can be a minefield when completing for the first time.  You've been given some good advice but as Lin mentioned above, a good training course will stand you in good stead.

The Chartered Institute of Payroll Professionals run training courses specifically for Year End covering:

 

·             Statutory Obligations

·             Balancing Year End

·             Payroll System Cleardown

·             Creating a Year End Schedule

·             Calculating and Remitting Final Payments

·             Deadlines

·             Penalties

·             Online Filing Requirements

·             Completion of Forms P14 / P35 / P60 / P38A

We have a whole host of membership benefits including free access to our Advisory Service, free weekly email update on all the latest industry news and access to a Legislation Tracker showing all the important changes that employers need to be aware of.  Take a look at our website to find out more about us - www.cipp.org.uk

Good Luck with Year End!

Regards, Diana Bruce, Senior Policy Liaison Officer for the CIPP

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By weaversmiths
30th Mar 2011 15:21

MAKE A SMALL INVESTMENT

Goto to www.moneysoft.co.uk and buy payroll manger.  This will solve almost all your questions and I am sure others will confirm how good the software is at £55 ----pauljohnston

I use Moneysoft and find it excellent.  One thing you must be sure to do - keep a hard copy of the acceptance Email for on-line filing sent to you by HMRC.  I have just entered yet another Complaint Case  with HMRC for a client for whom I do on-line filing for his CIS through Moneysoft every month.  HMRC claim not to have received the last 3 returns as they dont show up on their OnLine filing records (they do on Moneysoft records) .  OnLine Services Helpdesk were worse than useless - a child could do better.  Having the hard copy acceptance Email was essential in this case as HMRC would not have accepted the Moneysoft record of filing.

TheAncientOne

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Euan's picture
By Euan MacLennan
30th Mar 2011 17:38

Moneysoft

Whilst I agree with the consensus to buy Moneysoft, I don't agree with the previous response about keeping a copy of the Government Gateway e-mail confirmation, which shows only the PAYE scheme reference.  It is much better to keep a copy of Moneysoft's submission details, accessed by pressing the same bar that you pressed to file it online, which also gives the IR Mark and Correlation ID - HMRC cannot argue with those.  The same applies to all other online filing - such as P45s, P46s and P35s - from Moneysoft (and I suspect all other payroll packages).

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