Payroll Year End Reporting
As it is nearing the end of the tax year, I thought it would be good to talk you through what your accountant is doing to finish this year's payroll off, send off all the correct reports and kick off the new year.
This includes what you should expect to receive from your accountant.
Firstly your accountant has to mark the final pay run as the last of the year when its payroll software talks to HMRC. This is a straightforward process and there are solutions available if the correct boxes aren't ticked or the accountant misses the deadline.
Next the practice must roll forward the payroll record by setting it up, and entering the correct tax code. If your accountant has 64-8 agent authorisation in place, he/she will receive payroll notifications such as tax code changes. If not you will have to provide this to him/her.
Next is to update the payroll software to make sure that incremental changes from budget announcements have been implemented system-wide. This year the persona allowance goes up from £11,500 to £11,850 in 2018/19 so the tax code for most people will change from 1150L to 1185L.
By 31st May all employees must have been given their P60 which details all income and deductions for the previous tax year.
Finally, one must report on expenses and benefits. This must be done by the 6th July. The related tax on expenses and benefits must be paid by the 22nd July. This is quite a meaty topic and will need a blog of its own to do it justice, watch this space!