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BUSINESS TIPS

Payroll year end reporting has changed

The way in which payroll was reported to HMRC changed in April 2013 with businesses having to now operate their payroll in real time (under the new RTI payroll rules). This essentially meant that rather than waiting till the end of the tax year to report any PAYE and NIC liabilities, this was done on a month by month basis. This meant that the end of year filing requirements also changed.

Unlike previous years, there is now no need to file P35s and P14s as all this information has been filed during each month within the Final Payment Submissions (FPS) or Employer Payment Summary (EPS). This means that the whole process has been simplified as employers now simply have to make certain declarations to HMRC and file their final FPS (or EPS if applicable) to HMRC.

The only other major change HMRC have made is that the deadline for filing year end reports has been brought forward to 19th April 2014. The submission of any P11ds (if required) and payment of any subsequent class 1A NICs remain at 6th July 2014 and 19th July 2014 respectively.

The other legal requirement to note is that for all employees of the company, the employer must ensure a P60 is supplied to each individual by 31st May 2014.

If you would like more information about the changes to how payroll is reported to HMRC, please call the payroll team on 020 8429 9245.