If your business employs staff, one of your key obligations will be to run payroll. A major part of this process is dealing with payroll year end.
There are numerous tasks that need to be completed for a successful payroll year end. These include reporting to HMRC on the previous tax year, preparing for the new tax year, and issuing P60s to your employees.
This guide covers the basics of payroll year end has information on what you need to do if you’re taking on new staff. There’s also details on how and why Real Time Information (RTI) makes PAYE (pay as you earn) submissions more efficient and how payroll software can help you stay on top of everything.
The quick start guide to PYE will provide you with advice on:
- Payroll year end basics
- Taking on new employees
- Real Time Information (RTI)
- Deducting income tax and National Insurance contributions
- End of year employer tasks
There’s also a payroll calendar for the year, highlighting key dates that your business needs to be aware of, such as the start of the new tax year and when you need to get those P60s to your staff.
Here’s an excerpt from the guide:
Taking on new employees
You need to register with HMRC any employee paid more than £116 a week or those receiving any expenses or benefits (e.g. a company car).
You must also register employees who have another job or receive a pension. The same rules apply even if you’re the only employee of your own limited company.
When you take on a new employee, you must maintain records, including pay they’ve received during the current tax year and the tax code used to work out how much income tax and National Insurance to deduct from their earnings.
You can usually find the information you need on an employee’s P45 from their previous job.
The quick start guide to PYE
As an employer, dealing with payroll is one of your key tasks. Use this guide to learn about payroll year end, Real Time Information (RTI) and the other payroll tasks you need to carry out.