Published on September 29, 2014
Payroll RTI Presenter: Mr Zee Shan
Content: 1. Intro to presenter 2. PAYE 3. Online Registration Process 4. Mistakes to avoid 5. RTI 6. Help & Advice Presenter: Mr Zee Shan
Introduction of the Presenter View slide
Zee Shan Bawany CTA ACCA MAAT Leicester Regional Tax Manager Smartfield Accountants View slide
Education Qualification Centre CTA (Chartered Tax Adviser) BPP Birmingham ACCA (Association of Chartered Certified Accountants) De Montfort Uni ATT (Association of Tax Technicians) FTC Birmingham C & G 7407 Teacher Training Leicester College AAT (Association of Accounting Technicians) Leicester College BTEC National Diploma in Computing Leicester College
Employment Smartfield Limited Tax Manager Abbey Tax Plc Tax Consultant Smith Hannah Ltd Head of Personal Tax Leicester College Tax Lecturer
Who needs to register PAYE Scheme? Anyone who employs staff. It includes: - Self Employed Individuals - Ltd Co - Partnerships - Trust
Who does NOT need to register for a PAYE Scheme? Anyone who employs staff. But: - pays them below the National Insurance Lower Earnings Limit (2015: £111 p/wk, 2014: £109 p/wk) - all employees do not have another job - none of the employees are receiving a state, company or private pension - no employee benefits are provided http://hmrc.gov.uk/paye/intro/register.htm#1 http://www.hmrc.gov.uk/manuals/pommanual/PAYE20135.htm
Types of PAYE Schemes
Types Of PAYE Schemes -Normal PAYE Scheme -Tronc Scheme -Direct Payment Scheme (DOME) http://www.hmrc.gov.uk/manuals/dmbmanual/dmbm520020.htm
Normal PAYE Scheme 3 Payment Options -Monthly Payment -Quarterly Payment -Annual Payment
Payment Options of Normal PAYE Scheme
Normal PAYE Scheme: Monthly Payment Pay by 19th of the following month. If paying electronically then pay by 22nd
Normal PAYE Scheme: Quarterly Payment If the combined National Insurance contributions and PAYE payments for your employees and sub-contractors averages less than £1,500 a month, then Quarterly Payment Scheme can be setup.
Normal PAYE Scheme: Yearly Payment If all payments on which tax and NICs are due are paid to your employees annually in a single tax month, you can ask HMRC to be treated as an 'annual payer'. You must use the same month every year, so if this changes or you start paying your employees more frequently, you will need to tell HMRC.
Where to send payments HM Revenue & Customs Bradford BD98 1YY
Online payments https://www.santanderbillpayme nt.co.uk/hmrc/scripts/nrpayform. asp?pt=PAYE
Nil Online Payments http://www.hmrc.gov.uk/tools/pa yinghmrc/no-monthly-payment. htm Upto 30 April 2014 only
Nil Payments Notice Call HMRC's Payment Helpline on Tel 0300 200 3401
Registering PAYE Scheme
Registering PAYE Scheme Options: 1. Call 0300 200 3211 2. Online at: http://www.hmrc.gov.uk/paye/intro/register-email.htm
£2,000 Discount! The Employment Allowance is available from 6 April 2014. If you are eligible you can reduce your employer Class 1 NICs by up to £2,000 each tax year. https://www.gov.uk/employment-allowance-up-to-2000-off-your-class-1-nics
Operating PAYE Scheme
Monthly Vs Weekly
Joiners: P46 or P45 Leavers: P45
Reports: Wage slips Gross & Net Pay FPS And EPS
Yearly Forms: P60 FPS EPS
R T I Real Time Information
R T I HMRC Guide http://www.hmrc.gov.uk/payerti/
Full Payment Submission (FPS) Why? To let HMRC know who were paid and how much. When? By 19th of month following deduction even if paying by 22nd, replacements can be sent How? Basic PAYE Tool or 3rd Party Software.
Employer Payment Summary (EPS) Why? To reclaim statutory payment compensation YTD or CIS suffered When? By 19th of month following deduction even if paying by 22nd, replacements can be sent How? Basic PAYE Tool or 3rd Party Software. What else? – To submit nil return or period of inactivity – Even 1/4ly or annual payers must do monthly EPS saying ‘nil payment’? – To submit return for year
Employer Payment Summary (EPS) Extra details needed on Final EPS: - Ceased Indicator - Date scheme ceased - Final Submission for Year - Free of Tax Payments to employees - Expenses and Benefits paid to employees - Employees Out of UK - Employees Pay to Third Party - Forms P11D and P11D(b) are due? - Service Company http://www.hmrc.gov.uk/payerti/reporting/what-to-report.htm#9
Penalties under RTI <50 Employees 6 March 2015 >50 Employees 6 October 2014 http://www.hmrc.gov.uk/payerti/reporting/late-reporting.htm#3
Penalties under RTI No penalty will arise for the first month in each tax year where there is a filing default. This means there are a maximum number of 11 fixed penalties per tax year that can be charged for filing failures. Number of employees Amount of the monthly filing penalty per PAYE scheme 1 to 9 £100 10 to 49 £200 50 to 249 £300 250 or more £400
Submission deadlines Final EPS : 19 April EYU (Earlier Year Update): 19 May P60 to employees : 31 May
Penalty for late submission of Final EPS £100 per 50 employees for each month or part month you delay filing your return after 19 May. http://www.hmrc.gov.uk/paye/problems-inspections/annual-return-late.htm
Group Exercise Complete P60
Case Study Payroll Manager
Common Mistakes Group discussion
Solution to Avoid Common Mistakes 1. PAYE Office Reference Number used in place of PAYE Reference Number; 2. P14 form template used instead of P60 to hand out to employees; 3. Hand out the correct P60 to the correct employee. Mistakes happen when two employees have the same initial and surname; 4. Enter the correct National Insurance Numbers for all the employees, otherwise the State Pension benefit will not accrue; 5. Ask the employee to confirm his/her current address, to ensure the address on the P60 is correct. If P60 is to be posted out to the employee then it will reach the correct address.
Tax Table Tax Year 14/15 £ Tax Year 13/14 £ Income Tax Tax free income Personal allowance 10,000 9,440 Rate Basic rate: 20% 0 – 31,865 0 – 32,010 Higher rate: 40% 31,866 – 150,000 32,010 – 150,000 Additional rate: 45% Over 150,000 Over 150,000 http://www.hmrc.gov.uk/rates/it.htm
Summary - PAYE - RTI
Group Discussion 3 Problems that you face when operating the payroll and how you overcome them.
Copy of slides SlideShare.Net Search term: “Payroll RTI Leicester” Please do not send me e-mail after the event to request copies because I do many of these event and it is hard to deal with individual requests after the event.
Help & Advice HMRC Employer Helpline 0300 200 3211 CIS Helpline 0300 200 3210
http://ecommerce-for-business.com/shackles-boats-theboatonlinestore/ We offer a ...
Pretty similar to gold bars are these silver slabs. Silver is considered as the mo...
If you are an investor of gold bars and coins, one of the major things that you ou...
CyberSecurity's social media stats for one week as of Oct 21st 2014
CyberSecurity's social media stats for one week as of Oct 28th 2014
University of Leicester Pension and Assurance Scheme ... A monthly payroll for academic and support staff, ... Payroll Services Overview:
News / Latest News for Business / Archive / Payroll RTI system 'unrealistic' The Institute of Chartered Accountants in England and Wales (ICAEW) has warned ...
RTI – what is it? RTI, or Real Time Information, is the new system for processing your payroll. All payroll information (PAYE) needs to be submitted to ...
SAP client users — University of Leicester Personal tools Web Editor Log in Search ... payroll-services/RTI. ... (RTI) — University of Leicester ...
Payroll RTI system 'unrealistic' The Institute of Chartered Accountants in England and Wales (ICAEW) has warned that the RTI reporting system will be 'at ...
No payroll or account experience required as we do the calculations for your clients. ... We Are PAYROLLS DIRECT LTD, ... Leicester LE2 4HP; Call 0800 193 ...
Payroll Services in Leicestershire. Payroll services in Leicestershire are available here at Roskear and with over 20 years of experience offering payroll ...
Payroll Services. Payroll services are available here at Roskear and with over 20 years of experience offering payroll services you can really trust us to ...