Payroll year end 5th April 2020 is fast approaching but there should be no need to panic. All it takes is a little bit of preparation and ensuring you follow a plan of the things you need to do.
Of course, if Avanti prepare your payroll then it will all be handled for you in a simple and timely manner.
However, if you prepare your own payroll there are some pointers here to assist you
Make sure your software is ready for the new tax year
Your software provider will have an update available to install the new legislation settings required for the new tax year. Watch out for the download notification from your payroll software provider and get this installed on your computer(s).
Stationery for the year end
You need to also ensure you have enough P60’s available for you to issue to your employees. If you provide them with paper copies rather than producing online payslips and P60’s, make sure you order any stationery you will need.
Complete your processing for the 2019/2020 tax year
You need to ensure you have processed your last regular pay period for the tax year whether that is weekly, monthly and/or any other pay period you run. Take care if there is a week 53 to process. If you are paying your employees on Friday 5 April, then you will have a week 53.
Process any leavers that you have for the final pay run.
Send your Full Payment Submission (FPS) to HM Revenue & Customs (HMRC) and any Employer Payment Summary (EPS) for tax month 12 that you need to send also. The final FPS must be sent to HMRC by 19 April 2019.
Don’t forget to send off any final pension information for your workplace pension schemes.
And – don’t forget to calculate how much PAYE liability is due to be paid over for the final month.
Process your year end
Each payroll software will have a different way of processing the year end so you should check how your software completes this step. However, a year end submission will need to be sent to HMRC.
Your software will produce forms P60 for any staff employed on 5 April 2019. These need to be printed or produced electronically and must be sent to your employees no later than 31 May 2019.
Get ready for the new tax year.
Your software needs to be ready to process the payroll for the new year and the following will need to be checked.
• Employer settings – Small Employer Relief and Employment Allowance settings need to be checked if you are eligible to claim for 2019/20.
• Employees will need to have their tax codes amended if they have a suffix of L, M or N.
• You will also need to clear any week1/month1 flags from each employee.
• National Minimum Wage rises are applicable from 6 April 2020 – make sure you check your employees are receiving the correct rate including any apprentices you have.
• New legislation from April also requires that all employees who are paid for hours worked at an hourly rate must have those hours and rates shown on their payslip.
• From 6 April 2020 the reference period for calculating holiday pay for variable hours workers will increase from 12 to 52 weeks.
• Automatic Enrolment pension contributions also rise from 6 April 2019. You will need to adjust your pension so that your employees have the correct employer and employee contributions calculated.
• Download a copy of the revised starter checklist from GOV.UK. It now contains vital information regarding student loan plans.
It’s worth getting to grips with your year-end payroll planning now. Making plans now will make the process all the smoother.
Remember, the Avanti Payroll Bureau can prepare your year-end for you. For further information contact us on 01473 558866 or email firstname.lastname@example.org and make the subject heading Payroll Year End.