Payroll RTI Leicester

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Information about Payroll RTI Leicester
Business

Published on September 29, 2014

Author: ZeeShanTaxAdviserSma

Source: slideshare.net

Description

Payroll seminar covering the most talked about legal requirement of RTI (real time information) reporting to HMRC. Delivered by Zee Shan of Smartfield Accountants in Leicester.

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

Hobbies

Hobbies

PAYE System

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/

Data Required

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

http://www.hmrc.gov.uk/rates/nic.htm http://www.hmrc.gov.uk/paye/rates-thresholds.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

The End

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