Hello everyone,
I have been tasked with running payroll and I am very new to it. After my first run, a client got back to me saying that they had a new employee start during the period the payroll was run for. In consequence, the data of the new employee was not submitted to HMRC.
We use third-party software to make RTI submissions, the support team of the software advised that I could make an additional submission for this one employee using Basic PAYE Tools. I could not find what this type of submission is called, but I also wonder if I could use Moneysoft to do it. Once this submission has been made, they would be able to make adjustments in their software so that next month's payroll run is correct (although I think this can be done regardless of when the additional submission has been made as long as it is made before the next payroll run).
Now, I have a problem with Basic Tools in that I am copletely unfamiliar with it, and the user guide does not seem to offer any guidance in reference to my questions.
We only use Basic Tools to submit information to HMRC that a payroll scheme has ceased and the below, from what I can see. When I go into the software, I get two warning messages relating to two different clients:
1. One relates to an outstanding EPS submission for claiming Employment Allowance for 2019/20. However, the employer is not eligible anyway and my assumption is that the software was only used to check if they were eligible in the first place, but I cannot be sure.
2. This one relates to a client that we no longer act for and is also for claiming Employment Allowance for 2019/20, but this one is showing as eligible.
I still need to install the update as the software is not showing 2021/22.
I also need to tick a box when I open Basic Tools: "I understand that my submissions will fail if I do not carry out the employee/employer actions" - does this mean that any submissions for these two employers will fail if I do not carry out the employer actions or that any submissions relating to any client and any year will fail?
What would the consequences be if I did/did not make these submissions and would I be able to update to 2021/22 if I did not submit these? Although, I assume that I may have to submit the one for the client in point 1. as we may eventually cease their payroll scheme. Or, perhaps, can I make this additional submission in Moneysoft?
I hope I am not too inoherent and that I have provided enough detail. I would be grateful for any tips.
Kind regards
Replies (8)
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Why are you using basic tools and moneysoft?
Why can't you do everything you need through moneysoft alone?
I'd be very caucious of using two different payroll programs to file info.
Forgetting the fact the data may be wrong, you could end up with hmrc thinking there's two payroll schemes and changing everyone's tax code to take too much tax.
Stick with one or the other.
I'd suggest not using free agent for payroll and using moneysoft.
All you'd need to do is correct past pay and submit your next fps to correct it.
Or if needed you can send an eps or e
Pyu.
Id be very careful submitting anything through basic tools that didn't include all other employees incase it overwrites previous submission data.
Although I'm not sure whether it would as I believe submissions work on a cumulative basis and not an overwriting one.
Sorry I can't help more, as I don't use basic tools.
Ah the ol client who likes things their way even if it's not the correct way. Yep you need to stamp that out now otherwise you'll be forever getting in a mess trying to please a client instead of making life easier
No decent agent uses HMRC freeware or indeed any freeware
Seems to me you got what you paid for
Forgetting for a minute the capabilities of different payroll software packages ...
- What you are *meant* to do is to re-run the pay period (with the missing employee included) and submit a 'corrective FPS' (which will include data for all those previously submitted as well as the extra person);
- What you *can* do is to process the next pay period (with the missing employee as a starter and her/his missing pay from first period of employment included) and submit an FPS in the usual way.
The 'problem' with the 2nd method (which is what most people do) is that - unless your software does this for you automatically - you should first calculate the values for the new employee's missed pay period and then apply over-ride values in the first pay period that he/she is processed.
[This is because NICs / SLs / etc are not calculated on a YTD basis - and nor may be the Tax if employee tax code is on a Wk1/M1 basis].
Personally I would never use two different payroll systems to submit FPSs (or EPSs) for the same PAYE scheme in the same tax year - unless it was as part of a move from one system to another (which is an absolute pain and involves a major amount of work in order to avoid the kind of problems alluded to by others here).
One final point ... why did your client not inform you of the new starter in time for payroll processing? Or was the error at your end?
Either way, you need to use this example to review and improve the process/controls currently used for communicating changes from the client to yourselves.