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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 2021

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 or emailing of P60’s and the clearing of the employee details for Tax Year 2020/21 is required before you can proceed with paying employees for the Tax Year 2021/22. 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 (53/54 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 52/53/54 and/or Month 12 Full Payment Submission (FPS) has been submitted.

    When you select the option to "Submit Full Payment Submission (FPS)" for Week 52/53/54 or Month 12, you will see the message "Final Submission For Year?" with a dropdown message box. Select Yes only if it is your Final Submission for the Tax Year.

    **Please Note** Only select No for Week 52 if you are running a Week 53 or 54 payroll and then select Yes when submitting Week 53 or 54. Or if you also run a Monthly payroll and this will be filed after the Weekly.


  • 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 52/53/54 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 3.2 (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 OR EMAIL THE P60’S BUT NEED TO RUN A PAYROLL FOR WEEK 1, YOU CAN CLEAR THE 2020/21 TAX YEAR BY PROCEEDING TO STEP 4 – YEAR END PROCEDURE (CLEARING TRANSACTIONS). AT A LATER DATE (BEFORE 19TH MAY 2021 IF AN EPS REQUIRES FILING) YOU MUST LOGIN TO THE ARCHIVED DATABASE VIA COMPANY>VIEW ARCHIVED DATABASE AND RUN THE STEP MISSED FOR PRINTING OR EMAILING THE P60’S. YOU DO NOT NEED TO RUN STEP 4 AGAIN ON THE ARCHIVED DATA.

  3. P60’s. From the Menu select Year End – Reports - P60. You must issue a P60 to all employees who have been paid in your employment within the 2020/21 Tax Year, even those who have now left. This must be done by 31st May 2021. If you wish to print onto pre-printed stationery, you will need to use the HMRC Approved Single Sheet P60 as supplied from Hague Direct https://hague-direct.com/product-category/payslips-forms/other-products/software/clip-it-solutions/ alternatively, you could print the “CLiP IT Solutions Substitute eP60” but please be aware this will use a substantial amount of ink as this prints an image of the P60 with the employees details overlaid. The eP60 is designed for emailing. If you wish to email the “CLiP IT Solutions Substitute eP60” ensure you have the correct email settings within Company>Company Setup> Online and there is a tick () against P60s?. If you wish the P60 to be Password Protected, select […] and tick () Password Protect?. The password will be the employees National Insurance Number. Also ensure within Employee>Employees, the Contact Preference is set as Email, and a valid email address is entered.

    Year End Procedure - (Clearing Transactions).

  4. 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. (The only one you may not wish to tick is “Reset Holiday for ALL Employees to their current entitlement”, as this need only be selected if your Holiday Year runs in line with the Tax Year). If the tick box **“Launch updating of Tax Codes” is not selected at this time, you must select the menu option from Employee Menu, and update the tax codes as necessary prior to running a payrun for Week 1 or Month 1 of the 2021/22 Tax Year. Alternatively, you can manually amend each employees Tax Code.

    **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 7, M by 8 and N by 6.

  5. 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 2021.

  6. You will have received or downloaded the form P9X(2021) from HMRC. You will note from this that you need to add 7 to any tax code with an L suffix, 8 to any with M and 6 to any with N. The Emergency Tax Code is 1257L. If you did not increase these codes 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.

  7. Under the Pensions Act 2008, the minimum amounts the employer and employees pay into your Automatic Pension Scheme remains the same as Tax Year 2020/21. The Employer Minimum Contribution of 3% and the Employee Minimum Contribution of 5%.

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
Nicholsons House Nicholson Walk Maidenhead Berkshire SL6 1LD