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Employers end of Tax year issues
In years gone by employers would complete their annual Return form P35 which would be the end of year summary containing details of all employees during the Tax year just completed together with details of the Income Tax and National Insurance figures deducted, amounts paid to HMRC and details of any final balance due. This form would have been submitted in May following the end of the Tax year.
With RTI now in operation, these figures are reported to HMRC normally on a monthly basis. However, the old end of year Return form P35 also asked a number of other questions that needed to be answered before the form was submitted to HMRC. These questions are still relevant under RTI and will form part of the final submission due to HMRC by 19th April 2014 - i.e. about a month earlier than as been the case in years gone by.
With this is mind it is worth spending a bit of time now considering the end of year process so that everything can still be filed to HMRC on time. Therefore you may want to review your files to ensure that all submissions have been made to HMRC, all amounts due to HMRC to date have been paid, all amounts due to employees have been correctly paid, all details of expenses/benefits (if relevant) have been recorded, etc.
We will be writing to all of our clients for whom we help with their payroll to make sure that everything is in hand. When we do so, please pay close attention to the points raised - in particular, providing confirmation of payments made to HMRC which haven’t yet been advised to us and reviewing the additional questions that we will be sending out which replicate the points that need to be answered upon the final RTI submission.
However, if anyone else has any queries or concerns regarding the end of year routine then please get in touch.
Please note that this article has only referred to information needed by HMRC. Please remember that employees will still need to be provided with a form P60 (and P11d if relevant).