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Payroll managers: time to get ready for the new financial year

The new tax year is a busy time for payroll managers, with preparations to be made and P60s to issue. Sarah Pownall, head of Payroll Services at Clayton & Brewill Nottingham explains your responsibilities.

For each employee working for you on 6 April, you’ll need to prepare a new payroll record and identify the correct tax code to use in the new tax year. Enter this tax code for each employee into your payroll software. You’ll also need to update your payroll software so it uses the latest rates and thresholds for Income Tax, National Insurance and student loan repayments.

Provide each employee with a P60 by 31 May

You must provide all employees that were working for you at the end of the last tax year (5 April 2016) with a P60, summarising their total pay and deductions for the year.

Report employee expenses and benefits to HMRC by 6 July

You need to submit an end-of-year form to HM Revenue and Customs (HMRC) for each employee you’ve provided with expenses or benefits. Again this applies to all individuals in your employment as of 5 April 2016.  Expenses and benefits vary in how they are calculated – this list on the HMRC website details what you need to report and pay – https://www.gov.uk/expenses-and-benefits-a-to-z.

Full payment submission

You should have sent HMRC your FPS on or before your employees’ last payday of the tax year (ending 5 April). You’ll have until 19 April to get your full payment submission to HMRC; if you’re later than this then you’ll need to send an Earlier Year Update (EYU), detailing the difference between your last report and the final figures for the tax year. Note that late submissions usually incur a fine.

Payroll giving you a headache? The friendly team of payroll specialists at Clayton & Brewill can help take away the pain. Contact us on 0115 950 3044 or click here to send us an email.