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Payroll software updates

Posted by: edwinsmith on April 16th, 2010

If you run your payroll using a software package you should ensure that you have installed the latest update. If your software has an automatic update facility, then it may have been updated already. Other software providers make the update available as a download on their website or a CD Rom sent to you automatically or by request.

Although many of the personal allowances and rates have remained the same, the new 50% tax band is introduced from 6 April 2010 and the statutory maternity pay rates have also been updated.  Installing the updates will not only change these items but will also ensure that you are able to run the 2009/2010 year end procedures.

If you use the HMRC Employers CD Rom to process your payroll, you should ensure that you are using the most up to date version and have installed the latest update issued in March 2010 as reported in our previous article.

Filed under: PAYE

Employers Who Don’t Need To Make Year-end Returns (form P35)

Posted by: edwinsmith on April 8th, 2010

For 2009/10, employers may not need to complete an employer year-end return but HMRC must be informed.

 

An Employer Annual Return form P35 is not required only if you have not had to maintain any P11 deductions working sheets during the tax year, therefore a nil P35 form. One reason for this is if no earnings have been paid in the year through that particular payroll.

 

You may receive unnecessary reminders or penalty notices if you do not tell HMRC that you will not be completing a 2009/10 P35. HMRC strongly recommends that you make the notification online, as it is quicker, cheaper and easier than writing or calling.

 

Within the online notification you will need to confirm either that you will be submitting form P11D(b) by 6 July 2010 or that no form P11D(b) is due.

 

We can notify HMRC online on behalf of clients if required so please contact us if this will be of use or if you have any questions.

Filed under: PAYE

Employers CD Rom Update March 2010

Posted by: edwinsmith on April 7th, 2010

Some users have experienced problems with the 2010 Employer CD-ROM. HMRC have produced a March 2010 CD-ROM update (V2.0.2) that you can download or order and it is recommended that you do this whether or not you have experienced any problems or if the problems you've experienced differ from those below. The March update will provide better error reporting which will make it easier for the helpdesk to help you should the need arise.

 Known issues which the March 2010 update will fix

Once you've installed the March update the following known issues should be resolved:

-    the total amount of tax and National Insurance contributions due sometimes being carried forward incorrectly to the 2009-10 end-of-year summary (P35)

-    problems transferring data from the 2009 CD-ROM

-    problems opening PDF forms (Windows users only)

However, as previously mentioned, please still install the update even if you haven't encountered these problems.

How to get the update

The update can be downloaded from the HMRC website.

You will need to exit or close your current CD-ROM before installing the update. And once you've installed it, you can continue using the CD-ROM with any 2009-10 data already entered – the update should fix all of the problems mentioned above.

If you've entered any data for the start of the new tax year, 2010-11, this will be deleted. You will need to re-enter it after applying the March update so this update should be installed as soon as possible.

Getting an update if you don't have internet access

If the computer on which with your CD-ROM is installed doesn't have internet access then you can do either of the following:

-    download the March update on a different machine and copy it to the relevant computer (fastest solution)

-    call the Employer Orderline who will post you the update on disc.

If you've already sent in your 2009-10 Employer Annual Return

You should still download and install the March 2010 update. What you do next will depend on whether your Employer Annual Return was accepted or rejected.

If your return was originally rejected then you can use the CD-ROM again to file your return. You need to do this before 19 May 2010.

If your return was accepted please contact the Online Services Helpdesk on 0845 60 55 999 who can then tell you the action you may need to take.

Further help and guidance is provided on the HMRC website or alternatively please contact us.

Filed under: PAYE

Old Bank Accounts of HMRC Are Closing

Posted by: edwinsmith on March 30th, 2010

All HM Revenue & Customs (HMRC) bank sort codes and account numbers changed during 2009 as HMRC moved its banking services to Citi and Royal Bank of Scotland Group from the Bank of England.

HMRC temporarily continued to accept payments made using the old Bank of England account details, however this will change during 2010 when the old accounts will be closed. If you’ve not yet set up your payments to go to the new accounts please do so now by reviewing the HMRC payment information.

If you pay by Bank Giro, please make sure you use one of the newly issued payslips including the new NatWest account details. If you only have payslips that contain HMRC's old Bank of England account details please contact the tax office that issued them to you and ask for replacements.

If you are paying HMRC by Direct Debit you don’t need to do anything. Your Direct Debit instruction remains active.

From 2010, if you make a payment using the old bank account numbers it may be returned. This could result in your payment reaching HMRC late, which in turn could lead to your being charged a late payment penalty, interest or surcharges.

Filed under: PAYE, Tax, VAT

P35 Employer Annual Return To File Online

Posted by: edwinsmith on February 22nd, 2010

HM Revenue & Customs (HMRC) are currently reminding employers that their Employer Annual Return (P35 form) for the tax year 2009/10 must be filed online by 19 May 2010. Previously small employers - those with 50 employees or below - were given an incentive to encourage online filing but this has now ceased and paper filing of the P35 form is no long available. So, if you file your P35 form on paper, even if it’s before 19 May, you could receive a penalty.

To file online, employers must register with HMRC’s PAYE Online service if this has not already been done. Smaller employers can then use HMRC’s own free software to file their employee data securely online. However, it is recommended to register early as activation is required before the HMRC filing software can be used. Larger employers can purchase a range of commercial software to file online.

Please contact us if you require further information or assistance with filing online as we can file online on your behalf.  Alternatively visit the HMRC website or review the HMRC’s Employer CD-ROM, which is being sent to all employers.

Filed under: PAYE

Incorrect Tax Coding Notices

Posted by: edwinsmith on February 17th, 2010

A transfer to a new system at HM Revenue & Customs (HMRC) has caused some errors to be made in the issue of some PAYE code notices issued to taxpayers.

The three main errors which have been identified are as follows:

  • a previous employment stopped some time ago but the system has not picked this up and a Coding Notice has been sent for that employment

 

  • two notices have been sent for the same employment

 

  • the code BR (basic tax) or DO (higher rate tax) has been given for an employment or pension for the first time.

 

It is also possible that your tax code could be wrong for other reasons.

Many of these codes will be applied to pensions and employment income from April 2010 and so it is important that the errors are identified and corrected.

Where we receive a copy of a coding notice directly from HMRC, we will be checking this for you and will advise you if an error has been made, however, if you believe that your code is incorrect, then you should contact us.

If you would like to learn more regarding your tax code then more information can be found on the HMRC website.

Filed under: PAYE

Penalties for late PAYE payment to be issued from 2010/2011

Posted by: edwinsmith on February 12th, 2010

From 5 May 2010, the end of the first month in the 2010/2011 tax year, all employers and contractors will be subject to a penalty regime for late payments. Penalties will be charged for late monthly, quarterly or annual payments of:

  • tax
  • National Insurance Contributions
  • Construction Industry Scheme deductions
  • Student Loan deductions.

In year payments and the Class 1A National Insurance payment relating to P11D benefits will need to be made on time and in full. HM Revenue & Customs (HMRC) have confirmed though that one late payment in the tax year will not result in a penalty as long as it is not more than six months late.

Penalties will be worked out on a proportion basis of the amount that is late.  The later the payment the bigger the percentage will be. Please click here for information on the penalties.

Payments can be made in various ways and more information can be found on the HMRC website.

HMRC are issuing PAYE/CIS ‘Paying electronically’ letters in lieu of the yellow Employer Payslip Booklet, for 2010/2011, to encourage more electronic payments. The letter provides the necessary details to pay electronically instead of paying by post with a payslip. However, HMRC have confirmed that you or your accountant can write to the relevant tax office to receive the yellow Employer Payslip Booklet if electronic payments cannot be made. Only large employers, employing over 250 employees, must pay electronically so it is more of a convenience for smaller employers.

Paying electronically provides additional time to make payment. Due dates for payments can be found on the HMRC website.

If no amounts are due for a particular month or quarter a nil payslip should be sent on time, either by post or by using HMRC’s website, to avoid any unnecessary penalties. To do this online you will need your accounts office reference number. To send by post you will need the yellow Employers Payslip Booklet.

If you have any questions or would like to find out more please either contact us or review the penalties information on the HMRC website.

Filed under: PAYE
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