Shipleys LLP

Chartered Accountants and Professional Business Advisers

Happy New Tax Year!

This checklist shows the key deadlines for this tax year. In most instances there are penalties for late returns and the possibility of an interest charge on sums paid late.

Filing online

All employers must file their PAYE returns electronically.

Electronic payments

HM Revenue and Customs (HMRC) encourage making in-year and annual PAYE, NICs and PSA payments electronically and due dates are extended by three days where this payment method is used. Unless you have at least 250 employees or have been notified to make electronic payments by HMRC, it is not mandatory.

Penalties for late payments

Since April 2010 late payments in the year have been subject to new penalties. The rules are complicated; the penalty depends on the number of late payments and how late they are, but range from 1% to 15% of amounts paid late. HMRC must issue penalty notices within two years of the late payments.

Interest on late payments

Interest will be charged on any amounts due for 2012/13 which are not paid by 19 April 2013, (22 April if paid electronically). In addition HMRC may also charge interest on late in-year payments, although a demand is unlikely to be issued until after the end of the year.

Late filing penalties

Penalties can be imposed if employers fail to file forms P45 and P46 due in each tax quarter on time. The maximum quarterly penalty is £3,000. General advice and help The HMRC telephone order line for stationery and PAYE and NIC tables is 08457 646646. Their website is www.hmrc.gov.uk. HMRC’s telephone help lines offer general advice on PAYE and NI deductions. The number for existing employers is 08457143143, and for new employers is 08456070143.

Shipleys’ Client Payroll Department

The different PAYE codes and categories of national insurance contributions can make it tricky to get even the basic deductions right. However, real difficulties can arise when you add complications such as pension payments, statutory sick pay, maternity and paternity pay, statutory redundancy pay, student loan repayments, attachment of earnings orders (covering things like Child Support Agency
Payments) and modified PAYE schemes for expatriates.

Keeping abreast of the current rules and dealing with payroll matters is time consuming. That’s why Shipleys’ Payroll Department is popular with clients of all sizes. We can help with the whole process including employees’ payslips and issuing instructions to your bank, thereby protecting your accounts department from unnecessary queries from your staff. We can assist with online filing.

Real Time Information

All employers will need to operate their payroll within the Real Time Information (RTI) arrangements within six weeks of being asked to do so by HMRC. Under RTI, details about employees, their hours and earnings must be submitted to HMRC in advance of each pay period. This information will be used to amend payments under the new ‘universal credit’ state benefits system. Employers must be able to send this data to HMRC electronically. Those with 9 or fewer employees can use HMRC’s basic payroll software. Others will need to buy their own approved software or use a payroll service such as ours. Data about employees must be accurate and this can be validated with HMRC in advance.

Specific advice should be obtained before taking action, or refraining from taking action, on any of the subjects covered above.  If you would like advice or further information, please speak to your usual Shipleys contact.

Need more help? Please contact us at advice@shipleys.com or +44 (0)20 7312 0000