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CLiP IT Solutions

CLiP IT Solutions Ltd
Construction Industry Accounts

phone: 01935 434 435
email: info@clipitsolutions.co.uk

Tax Year End Update - April 2019

We will be releasing the Tax Year End update week commencing Monday 18th March 2019. This will be a staggered release to help ease congestion on our Support Line, so please do not be alarmed if you do not get prompted to download the update immediately. However, if you have not been prompted by 1st April 2019 please contact the Support Department. The latest versions will be:- CIA (Version 3.0 (Build 1) and PAYE Plus (Version 3.0 (Build 1)). These latest versions of the software contain the necessary programs to enable you to finalise the Tax Year End on the Payroll. Please follow the separate instructions "PAYE Plus Tax Year End 2019" for this.

Also, included within the update is Making Tax Digital (MTD). Most VAT Registered businesses with a taxable turnover above £85,000 must follow the rules for Making Tax Digital for VAT. To identify if you are one, please refer to www.gov.uk/guidance/check-when-a-business-must-follow-the-rules-for-making-tax-digital-for-vat If you qualify, you must follow the rules for MTD for the first VAT Return Period starting after 1st April 2019. Further guidance will be included with the Update.

! When paying week 52 payroll, if you wish to pay holiday pay which relates to week 1 of the new tax year, you must not advance the pay week. Monies paid within the tax year must not overlap into the next tax year, therefore, pay basic and holiday pay in week 52 and do not select the option to advance the Pay Week. Please refer to HMRC document CWG2 (2018 to 2019: Employer further guide to PAYE and NICs) Section 2.7 Holiday Pay, subsections 2.7.4 Working out PAYE on holiday pay and 2.7.5 Working out NICs on holiday pay https://www.gov.uk/government/publications/cwg2-further-guide-to-paye-and-national-insurance-contributions (select 2018 to 2019) for more information.

! With the implementation of Real Time Information in April 2013, there is no longer a requirement to file P14's & P35's at the end of the year, this information is incorporated within the weekly/monthly FPS and EPS. However, when you submit your Final FPS for Week 52/53 or Month 12 you will notice that the Checkbox ‘Final Submission for Year’ will become available – select YES for the final submission. With the EPS, you need to tick ( ) 'Final Submission for Year', but this is only necessary if you have not shown this on the FPS.

Legislation Changes from April 2019

Employment Allowance:-

EA remains the same at £3000 per annum for Tax Year 2019/20. EA cannot be claimed if there is only one employee and if this sole employee is a Director of the company

Student Loans:-

Student loan deduction is 9% for both Plans 1 & 2.

Plan 1 -
English and Welsh students who started their studies before 1 September 2012 and all Scottish and Northern Irish students. Employees on Plan 1 will only start repaying their student loan when they earn over £18935.

Plan 2 -
English and Welsh students who started their studies on or after 1 September 2012. Employees on Plan 2 will only start repaying their student loan when they earn over £25725.

Postgraduate Loan:-

The employee earnings threshold is £21000 and the deduction is calculated at 6%.


Don’t forget, PAYE Plus incorporates the facility to "View Archived Databases". This will enable you to run the Tax Year End procedure without having to print your Employee Deductions Working Sheet, P60’s or file your Final EPS, but will enable you to clear tax year details so that Week 1 can be run. (You must follow the Year End Procedure Steps 1 through to 4 inclusive, to clear all records). Then at a later date (before May 19th 2019, as this is the deadline from HMRC for filing returns) you can access the 2018/19 records by selecting Company - View Archived Databases and selecting the relevant database and then run the Year End Procedure, preparing, printing and filing online correctly.

Also included within this version are the 2019/20 Tax Year NI,SSP,SMP,SAP, SPP & ShPP Tables.

  • With effect from 6th April 2019, the Tax Rates are as follows:-

    UK Tax Rates:-
    • Basic Rate 20% £1 to £37,500
    • Higher Rate 40% £37,501 to £150,000
    • Additional Rate 45% £150,001 and above

    Scottish Tax Rates:-
    • Starter Rate 19% £1 to £2,049
    • Basic Rate 20% £2,050 to £12,444
    • Intermediate Rate 21% £12,445 to £30,930
    • Higher Rate 41% £30,931 to £150,000
    • Additional Rate 46% £150,001 and above

    Welsh Tax Rates:-
    • Basic Rate 20% £1 to £37,500
    • Higher Rate 40% £37,501 to £150,000
    • Additional Rate 45% £150,001 and above

  • The threshold for PAYE is raised to £240 per week and £1042 per month.

  • 'L' suffix codes increase by 65; code 1185L becomes 1250L.
    'M' suffix codes increase by 71
    'N' suffix codes increase by 59

  • Do not carry over any Week 1 or Month 1 markings
  • The emergency code will be 1250L W1/M1

  • There are still 6 levels of earnings used to calculate NICs, these are Lower Earnings Limit (LEL) Primary Threshold (PT) Secondary Threshold (ST) Upper Earnings Limit (UEL) Upper Secondary Threshold (Under 21) (UST) (added for 2015/16 Tax Year) and Apprentice Upper Secondary Threshold (AUST) (added for 2016/17 Tax Year). The 2018-19 Upper Earnings Limit (UEL) Upper Secondary Threshold (Under 21) (UST) and Apprentice Upper Secondary(AUST) Threshold are the same value. It is possible that indexation may result in these thresholds having different values in future years. In view of this and in order to avoid making unnecessary changes the UEL, UST & AUST values are the same resulting in earnings between UEL, UST & AUST being zero, as will the NICs rebate for that portion of the earnings.

    The rates for these are:-

    Weekly Monthly Yearly
    LEL 118 512 6136
    PT 166 719 8632
    ST 166 719 8632
    UEL 962 4167 50000
    UST 962 4167 50000
    AUST 962 4167 50000

  • The Weekly rate of Statutory Sick Pay (SSP) is £94.25 for employees with average weekly earnings of £118 or more.

  • The Weekly rate of Statutory Payments for SMP/SAP/SPP & ShPP is £148.68 or 90% of the employee's average weekly earnings, whichever is the lower. The proportion of your payments you can recover from HMRC is 92% if your total Class 1 National Insurance (both employee and employer contributions) is above £45,000 for the previous tax year or 103% if your total Class 1 National Insurance for the previous tax year is £45,000 or below.

The above rates will be updated automatically when you run the PAYE Tax Year End Procedure and select the option to Switch to the New Tax/NI Rates for 6th April 2019.

For more information and guidance on PAYE and NICs rates or calculation of SMP, SPP and SAP please refer to www.gov.uk/guidance/rates-and-thresholds-for-employers-2019-to-2020 from HMRC.


! Please ensure you have the correct Year End Forms, these can be ordered from HMRC via the internet http://www.hmrc.gov.uk/gds/payerti/forms-updates/forms-publications/onlineorder.htm#0x1 or by phoning the HMRC Orderline on 0300 123 1074. Delivery is usually within 5 working days. For Online filing you require P60(SingleSheet-Shortened)(2018-2019) – Certificate of Pay. For manual completion or with a Laser Printer. Please ensure you order enough to cover any employees who have left within the tax year. All forms must be Laser Portrait.

P45's and P46's - As of 6th April 2013 you no longer needed to file P45's and P46's, this information is automatically incorporated within the Full Payment Submissions dealt with via Real Time Information (RTI). However, you still need to print a P45 for Leavers and these can be obtained from HMRC Orderline. You will require P45(Laser Sheet)-3 part. Details of employees leaving work: for use with a Laser Printer. PAYE Plus will print on the 3 Part, so if you have any existing 4-part stationery, you will just need to discard part 1 before printing.

The Pensions Regulator – Re-enrolment

Every three years after your automatic enrolment staging date, you need to re-assess your employees to identify if you have any employees to re-enrol or no employees to re-enrol. Either way you must complete a re-declaration of compliance to inform the Pensions Regulator that you have met your duties. You can choose a date within a 6 month window (3 months before – 3 months after the 3rd year anniversary of your staging date). For more information refer to www.thepensionsregulator.gov.uk/en/employers/re-enrolment or contact your Pension Provider.

Minimum contribution effective from 6th April 2019:-
  • Employer minimum contribution – 3%
  • Employee minimum contribution – 5%
  • Total minimum contribution – 8%

If you have any queries, or are unsure on any of the above, please do not hesitate to contact the Support Department. A reminder of our telephone number is 01935 443340. Please be aware that our phone lines tend to be extremely busy at this time of year, so please bear with us.


! If you are a new user, or you are only planning to start going LIVE as of April 2019, and therefore have no need to run a Tax Year End, please change the 'Use Tax/NI Rates from' to 'From April 2019' within Company>Company Setup>General Preferences or alternatively, contact the Support Department to have this module loaded.


Melanie Ditch
Support Manager
For and on behalf of CLiP IT Solutions Limited

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