PAYE Plus Tax Year End Procedure 2017
With the introduction of Real Time Information (RTI) in April 2013, the requirement for filing P14's and a P35 at the Tax Year End has now ceased. The information that used to be contained in these online reports has been submitted on a weekly or monthly basis via the Full Payment Submission (FPS) and where necessary, the Employer Payment Summary (EPS). Only the printing of P60's and the clearing of the employee details for Tax Year 2016/17 is required before you can proceed with paying employees for the Tax Year 2017/18. Please follow the steps below, to complete this.
Checks and reports to be made prior to Year End Run.
- Make sure all Nominals & Costings have been posted. Any un-posted transactions will be lost once the Year End procedure has been run.
- Print the Deductions Workings Sheet (Previously called P11's) and any other year end reports you may need. (A P32 (yearly) is always a good one for cross-checking purposes). Once the Year End Procedure has been run you will be unable to print the reports from your "Live" company. You will need to access the database via "View Archived Databases".
AFTER STEP 1 AND 2 HAVE BEEN COMPLETED, IF YOU ARE NOT IN A POSITION TO PRINT THE P60’S BUT NEED TO RUN A PAYROLL FOR WEEK 1,
YOU CAN CLEAR THE 2016/17 TAX YEAR BY PROCEEDING TO STEP 4 – YEAR END PROCEDURE (CLEARING TRANSACTIONS). AT A LATER DATE (BEFORE 19TH MAY 2017 IF AN EPS REQUIRES FILING) YOU MUST LOGIN TO THE ARCHIVED DATABASE VIA COMPANY>VIEW ARCHIVED DATABASE AND RUN THE STEP MISSED FOR PRINTING THE P60'S. YOU DO NOT NEED TO RUN STEP 4 AGAIN ON THE ARCHIVED DATA.
- Print P60's. From the Menu select Year End - Reports - P60.
Even though you have submitted weekly and/or monthly Full Payment Submissions and Employer Payment Summary (where necessary) online,
you will still need to issue a P60 to your employees, this must be done by 31st May 2017. You will need to use the P60 laser portrait stationary as supplied by HMRC. (P60(SingleSheet/Shortened)(2016-17)).
Year End Procedure - (Clearing Transactions).
Once you have submitted your final Full Payment Submission (FPS) and/or Employer Payment Summary (EPS) and printed the year end reports you can then clear down the Tax Year transactions in Year End – Year End Procedure. Step 1 will ask you to Archive the database. Step 2 will ask you to confirm that all Nominals and Costings have been posted (any un-costed transactions will be lost once the Year End Procedure is completed). Step 3 will ask if reports have been printed and the Final FPS and EPS (including Declarations) have been submitted, or if these steps intend to be run on the Archived copy of the Database. Step 4 will ask you to select the options relevant to you during the Year End Procedure. If the tick box ** "Launch updating of Tax Codes" is not selected at this time, you must select the menu option from the Employee Menu, and update the details as necessary, prior to running payroll for Wk1/Mnth1 of 2017/18 Tax Year.
**Please Note** Update Tax codes globally via "Launch updating of Tax Codes". Highlight the relevant Tax Suffix,
select [EDIT], enter the modification, followed by [OK] and [Update]. Select [YES] to confirm you wish to update all employee tax codes.
A message will display informing of how many employees have been updated. This year L codes are modified by 50, M by 55 and N by 45.
- Once the Year End Procedure is complete, in Company - Company Setup - General Preferences make sure the "Use Tax/NI Rates" are set at From 6th April 2017.
- You will have received the form P9X(2017) from HMRC. You will note from this that you need to add 50 to any tax code with an L suffix,
55 to any with M and 45 to any with N. E.g. 1100L becomes 1150L. If you did not do this via the "Launch updating of Tax Codes"
you will need to do this manually via the Employees details. Also, any individual Tax Code changes need to be entered via the Employees details. If you previously had any employees on the Emergency Week1/Month1 Tax code, the Week1/Month1 should be removed for the New Tax Year.
You are now ready for the new Tax Year.
*** PLEASE CHECK TAX AND NI RATES BEFORE RUNNING A WEEK 1 MONTH 1 PAYROLL - IT IS YOUR RESPONSIBILITY TO ENSURE YOU ARE USING THE CORRECT RATES ***