One of my clients for what ever reason decided that the bonus he paid to an employee was not taxable, having done the maths and grossed the payment up he owes about £3k.....my question is how do i do this now and are there penalties and interest due. .
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By filing an Earlier Year Update
If your payroll software does not have the facility to file EYUs (Moneysoft does not, for example), you can report the additional 2013/14 PAYE liability by using HMRC's Basic PAYE Tools.
Penalties for PAYE seem to be out of fashion at the moment. Interest will probably be charged at 3% p.a.
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If your payroll software does not have the facility to file EYUs (Moneysoft does not, for example), you can report the additional 2013/14 PAYE liability by using HMRC's Basic PAYE Tools.
Penalties for PAYE seem to be out of fashion at the moment. Interest will probably be charged at 3% p.a.
Or switch to 12pay. Does it all :)
Why bother?
If your payroll software does not have the facility to file EYUs (Moneysoft does not, for example), you can report the additional 2013/14 PAYE liability by using HMRC's Basic PAYE Tools.
Penalties for PAYE seem to be out of fashion at the moment. Interest will probably be charged at 3% p.a.
Or switch to 12pay. Does it all :)
Why bother to switch just to cope with sorting out a [***]-up by a client or the legendary "previous accountant"? Unless you have run the payroll yourself, in which case you should not have made the mistake in the first place, you are going to have to input all the data into whatever software you use, so it might as well be HMRC's Basic PAYE Tools.
This is not to say that I do not believe that 12Pay is an admirable product (I have advocated it on AWeb many times), but the lack of an EYU facility is no reason to change from Moneysoft if you are happy with it for all other purposes (and almost everyone is).