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CLiP IT Solutions

    
CLiP IT Solutions Ltd
Construction Industry Accounts

phone: 01935 434 435
email: info@clipitsolutions.co.uk
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PAYE Plus Tax Year End Procedure 2018

Real Time Information (RTI) submits on a weekly or monthly basis via the Full Payment Submission (FPS) and where necessary, the Employer Payment Summary (EPS) the information required to HMRC. Therefore, only the printing of P60's and the clearing of the employee details for Tax Year 2017/18 is required before you can proceed with paying employees for the Tax Year 2018/19. Please follow the steps below, to complete this.

! Before you can proceed with the Tax Year End procedure please ensure that the following has been completed:
  • The payroll has been run and all reports printed for week 52 (53 if applicable - which should only be if your pay day falls on 5th April, or 4th or 5th in a leap year) and month 12.

  • Week 52/53 and/or Month 12 Full Payment Submission (FPS) has been submitted.

    When you select the option to "Submit Full Payment Submission (FPS)" for Week 52/53 or Month 12, you will see the message "Final Submission For Year?" with a dropdown message box. Select Yes or No.

    **Please Note** Only select No for Week 52 if you are running a Week 53 payroll and then select Yes when submitting Week 53.


  • Month 12 Employer Payment Summary (EPS) has been prepared and submitted, if required.

    When you select the option to "Prepare Employer Payment Summary" for Month 12, you will see that there is a checkbox for "Final Submission for Year", only tick () this if you have not submitted a Full Payment Summary (FPS) for Week 52/53 or Month 12. Only employers who are placing a tick () in "No Payment for Period" or in "Period of Inactivity" will not have submitted a Full Payment Summary (FPS)

  • The update has been downloaded - PAYE Plus Version 2.9 (Build 1).

Please ensure the user running the year end procedure has full security rights to access all employees.

Please ensure you are logged into the correct company details (i.e. Archived version if running at a later date) and that no other users are logged into PAYE Plus.




Checks and reports to be made prior to Year End Run.
  1. Make sure all Nominals & Costings have been posted. Any un-posted transactions will be lost once the Year End procedure has been run.

  2. 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 2017/18 TAX YEAR BY PROCEEDING TO STEP 4 – YEAR END PROCEDURE (CLEARING TRANSACTIONS). AT A LATER DATE (BEFORE 19TH MAY 2018 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.

  3. 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 2018. You will need to use the P60 laser portrait stationary as supplied by HMRC. (P60(SingleSheet/Shortened)(2017-18)).

  4. Year End Procedure - (Clearing Transactions).

  5. 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 2018/19 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 35, M by 39 and N by 31.

  6. 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 2018.

  7. You will have received the form P9X(2018) from HMRC. You will note from this that you need to add 35 to any tax code with an L suffix, 39 to any with M and 31 to any with N. E.g. 1150L becomes 1185L. 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.

  8. Under the Pensions Act 2008, the minimum amounts you and your staff pay into your Automatic Pension Scheme increase as of 6th April 2018. From 6th April 2018 to 5th April 2019, the Employer Minimum Contribution increases to 2% and the Employee Minimum Contribution increases to 3%. You must edit each Employee, and under the Pay Codes tab, edit the codes you have set for Employee and Employer Automatic Pension Contributions and increase the % to the required amount. Do not forget, if the employee’s contribution is calculated on the net pay, the current 1% is made up of 0.8% employee contribution and the 0.2% is reclaimed from HMRC by your Pension Provider, therefore if the employee contribution is increased to 3%, this will be 2.4% from the employee and 0.6% reclaimed from HMRC by your Pension Provider.

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 ***

CLiP IT Solutions Limited
Unit 3, Plot 5b, Watercombe Lane, Lynx Trading Estate, Yeovil, Somerset, BA20 2SU