Owner Kate Upcraft Consultancy Ltd
Share this content
Tags:

New tax year: The essential agent 'to-do' list

5th Apr 2016
Owner Kate Upcraft Consultancy Ltd
Share this content
istock_talevr

Are you up to speed with all of the new tax year announcements? Don’t worry, Kate Upcraft has compiled a handy to-do list for agents.

So 2015/16 hurtles to a close. There have been so many issues and announcements over the last few weeks it will have been all too easy to miss them as publicity has been limited and after all agents have been a bit busy processing PAYE year-end. So it might be useful just to tick off that you have all the following covered:

Issue  Comment  Action
 ‘S” marker missing from downloaded tax codes  via the Internet channel  HMRC reissued the affected files in mid-March Ensure files applied in correct order and any rejections are dealt with. Any employee who has not been allocated an S tax code and believes this is incorrect is required to update their address with HMRC
Plan number missing from student loan start notices downloaded from PAYE desktop viewer (PDV)  New version of PDV had to be downloaded from 24th of February 2016 in order for plan number to be displayed Ensure new version is in place
Future dated start notices for student loans may have caused March deductions to cease for existing student loan repayers SL1  notices received prior to March payroll  runs were  dated 6th April 2016,  this may have caused software to stop a deduction in March and restart in April Check a sample of student loan repayments that were in place for February have continued to deduct in March and that Plan 2  start  notices are in place to begin deductions in April
 Amended new starter checklist cannot be printed  as a blank PDF  The new starter checklist that must be brought into use from 6 April 2016 was only available as an i-form.  A printable version was released on 4 April 2016 Ensure that the version available here is brought into use from 6 April 2016
New version of Basic PAYE tools BPT Was available to download from 1.4.16 Find it here
Deadline for registering for payrolling benefits  and excluding employees for whom P11ds will remain in place  Any existing PAYE schemes that have been payrolling benefits,  or wish to begin to do so  from 6th April 2016,  must register by 8pm on 5 April 2016  or revert to P11ds for 2016/17 tax  tax year The registration link is here
 Tax code uplift applied? As well as uplifting L codes by 40 points the new M and N suffixes for the marriage allowance must be uplifted by 44 and 36 respectively P9X is here
National living wage Should be in place for pay periods that begin or or after 1 April 2016 for those aged 25 and over on that date Check salary sacrifices leave pay in excess of £7.20 per hour where appropriate
Contracting out abolished D NICs table letter (and allied contacted-out letters) should not be in use Ensure appropriate table letter in place
New NIC table letter in place for apprentices aged 25 and under Table letter H should be in use and takes priority over M Check software action required to apply H
Consider which clients are not eligible for employment allowance Single director schemes no longer eligible  Set EPS to N in April to stop reclaim and monitor in case second employee recruited when eligibility gained for 2016/17
P and Y suffixes no longer in use HMRC should have issued L codes to replace both these suffixes  Check if any employees are affected
Changes to Scottish court orders and direct earnings attachments New tables in place Check software updated
Standard of codes issued for the start of the new tax year  There are numerous reports of  incorrect tax codes being issued  for 2016/17 Focus on: codes where 1100L has replaced 0T (ie full personal allowance reinstated when the income limit should mean it is not in place, BR rather than D0 or D1, codes with benefits in kindstill shown when these are being payrolled from April,  codes with incorrect estimates of dividends or savings interest
Tags:

Replies (4)

Please login or register to join the discussion.

Euan's picture
By Euan MacLennan
05th Apr 2016 13:48

Thank you

Great update

Thanks (1)
avatar
By MM Bookkeeping Services
05th Apr 2016 22:28

Starter Checklist

Thank goodness this is now in printable version as I was cursing HMRC the other day when I tried to download.

Ref the S codes - I still have clients with employees who have not been updated and they all live and work in Scotland.

Thanks for the update - much appreciated.

Thanks (0)
By chewmac
06th Apr 2016 08:14

Starter checklist- is it a must?
P46 was withdrawn and employers had to make own Starter Checklist but must employers now use HMRC new Starter Checklist and not their own?

Thanks (2)
avatar
By Hugo Fair
06th Apr 2016 12:41

Not mandatory

The short answer is No.

It is more than advisable to ask the questions (and record the answers) in order to justify which tax code you apply (until notified otherwise direct by HMRC) and whether to make Student Loan deductions (and if so for which plan type).

However it is the questions (and logic flow) that matters, not the physical makeup of the form ... which can be paper or electronic, and can be your own creation (so long as it incorporates the same questions).

Thanks (3)