Shipleys LLP

Chartered Accountants and Professional Business Advisers

Happy new tax year

The checklist below 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.

Real Time information

All employers must now report their payroll information online using a full payment submission (FPS) for each pay period. This is known as ‘Real Time Information’.

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.

Interest on late payments

HMRC charge daily interest on all unpaid amounts from the due and payable date to the date of payment, and raise the charge when payment in full has been made.

Late filing penalties

Late filing penalties apply to FPS returns due from employers from 6 April 2015.

Penalties can also 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.

Forms P11D, voluntary payrolling and dispensations

Forms P11D are still required for 2015/16. From 6 April 2016, expenses paid or re-imbursed for which the employee is entitled to a tax deduction, by employers registered for voluntary payrolling, are exempt. Employers don’t need to report such payments on forms P11D and ‘dispensations’ no longer apply.

General advice and help

The HMRC telephone order line for stationery is 0300 123 1074. Their website is www.hmrc.gov.uk. HMRC’s telephone help line offers general advice on PAYE and NI deductions. The number is 0300 200 3200.

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.

£3,000 NIC employment allowance

Don’t forget to claim the £3,000 NIC employment allowance through your payroll software from 6 April 2016.

It’s no longer available to employers with one director/employee – please speak to us.

Specific advice should be obtained before taking action, or refraining from taking action, in relation to the above.

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