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.

Real Time information

Almost 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’. The temporary relaxation of the reporting requirements for smaller employers is being tightened up. From 6 April 2014 only existing ‘micro’ employers with nine or fewer employees will be able to report PAYE information on or before the last payday in the month (until April 2016).

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

For tax years 2014-15 onwards, HMRC will 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

New late filing penalties will apply to returns due from employers for the tax year 2014-15 onwards. Their start date is deferred until 6 October 2014 to give HMRC and employers more time to adapt to reporting in real time. To avoid late filing penalties, you must make sure all submissions due are fully up to date by 5 October 2014. 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 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.

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