Chartered Accountants and Professional Business Advisers

2016/17 Tax year – employers’ checklist

* Extended by up to three days if paid electronically.

This checklist for your notice board 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.

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 and payrolling of benefits in kind

Forms P11D are still required for 2016/17 unless all re-imbursed expenses are within a voluntary payrolling arrangement made before 6 April 2016. Some benefits cannot be payrolled and for 2016/17 these include accommodation and loans which must be reported on form P11D. If cars and car fuel benefits have been payrolled, then form P46(car) forms are not required. P11D(b) is still required to account for the class 1A National Insurance contributions on benefits, irrespective of whether they have been payrolled.

Non-cash vouchers and credit tokens

can be included in payrolling from 6 April 2017. It is expected to be compulsory to payroll company car and fuel benefits from 6 April 2018. You must register for voluntary payrolling before the start of a tax year, so may wish to take action now to be ready for the year commencing on 6 April 2018. Registration automatically continues for subsequent years until 5 April following deregistration.

General advice and help

The HMRC telephone order line for stationery is 0300 123 1074. Their website is 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, payrolling of benefits, 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.

01483 423607

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