Year end is near. But don’t panic. We’re summarised the steps to help ensure your year end runs smoothly…
1 – Get your P60s ready
Some of you, like us, will be utilising electronic P60s which are HMRC approved. These are a great time saving tool and cost effective. It also stops the dreaded phone calls come self-assessment season next January. But if you’re still using paper P60s – make sure you get them ordered now and that you have enough of them to ensure you can meet the deadline of 31st May to get them distributed to your employees.
2 – Week 53
If you run a monthly payroll, this won’t impact you. But for those running weekly, fortnightly or four weekly basis it could be you (sounds like I’m a celebrity get me out of here!). The simple rule is if your pay day falls on the 5th April you will have a week 53. So, for those of you paying weekly on a Friday you will have a week 53 in the 2018-19 tax year.
3 – Software Updates
Its worth checking with your software provider in case any software updates are needed before your final submission. Check this before you open your final pay period.
4 – Process your leavers
Any leavers should be processed in the current tax year where possible. This keeps tax records updated correctly with HMRC and reduces the admin burden on year end for you.
5 – Final RTI submissions
You will need to tell HMRC that this is your final RTI submission of the tax year. This must be done before 19th April. This should be done on your final FPS, or if you need to send an EPS on your final EPS.
What happens if you forget to tick the final submission on your FPS? Just send an EPS and tick final submission. If you forget on the EPS this can be resent with the final submission box ticked.
If you sent a final FPS / EPS and get some late amendments don’t worry. Process the corrections and resend your FPS (and EPS if needed) with the final submission ticked again. Please note you cannot send an FPS or EPS for the 2018-19 tax year after 19th April 2019.
Any updates after this would have to be submitted via an EYU (Earlier Year Update).
6 – Back Ups
Year end is much easier now than it used to be, but things can still go wrong. Our most important tip is to take back-ups and plenty of them!
7 – Process Year End
This will vary slightly from system to system so check full details with your software provider. Run your reports and check they can be opened, and you’ve run off the right reports. These records need to be kept for at least 3 full tax years.
Before you process year end you need to;
- Check directors NI calculations
- Run a comparison between your P32 and P35 and investigate any anomalies.
Once you are happy with the figures you can then close the year.
8 – Prepare for 2019-20 Tax Year
You’re now ready to prepare for the new tax year. You should consider;
- Tax and NI thresholds: even if your software provider does this you should check the bands are correct.
- Tax codes: apply P9X and other P9s and remember to remove any week 1 / month 1. Please note there are now different rates for both Scottish and Welsh workers from April 2019 with tax codes beginning with a S and C respectively.
- Update / check statutory payment rates.
- Small employer relief on Statutory payments.
- Employment Allowance Indicator.
- Apprenticeship levy including allowance.
- Pension contribution rates increase from 6th April 2019.
- Whether you want to clear down year to date balances for accounting year / holiday year / pension year.
- National Minimum Wage increases from 1st April 2019.
- Postgraduate Loan repayment will start from 6th April 2019.
9 – GDPR
You may be sick of hearing about GDPR but it’s an ongoing responsibility. Delete your old payroll records. Payroll data needs to be held for 3 full years from the end of the tax year meaning you can potentially delete payroll records from 2015-16 from 6th April 2019.