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Edition in summary
Employer Bulletin 52, the latest edition of HMRC’s bi-monthly information service, is now online and summarised below.
End-of-year reporting
Employers are no longer required to complete the final report checklist items 111 to 117 on their last full payment submission (FPS) or employer payment summary (EPS) for a tax year. This change takes effect for PAYE reports made from 6 March.
As a result, from 6 March, HMRC will accept a final FPS or EPS for a period from 6 April 2014 to 5 April 2016 with or without a completed checklist. Where employers do have to complete the checklist to enable their software to make their final submission, it must be completed accurately.
The Revenue will remove these checklist items from the basic PAYE tools as soon as possible, but probably not until July.
The following are some reminders for final 2014/15 submissions.
- the final FPS should be sent on or before the last pay day of the tax year;
- the final FPS or EPS should indicate that it is the “Final submission for the tax year” for the whole PAYE scheme; and
- the employer can make an EPS final submission if the FPS did not state it was the final one, no one was paid in the final pay period of the year, or the final submission was filed early and the employer did not pay anyone for one or more full tax months for the rest of the tax year.
If information on the final submission needs to be corrected, a revised FPS must be sent before 20 April, indicating that it is the final submission for the tax year. Errors in the final FPS discovered on or after 20 April should be corrected by sending an earlier year update (EYU).
Employers have until 31 May to give a P60 end of year certificate to employees.
Basic PAYE tools
An update to the basic PAYE tools is available from GOV.UK. The latest version includes a revision to the automatic update facility.
P9 coding notifications
HMRC have started issuing paper P9 coding notifications and expect complete the process by 23 March 2015, although employers may still receive notifications as late as 26 March.
If a business does not receive the P9 in time for the first pay period after 6 April 2015, it can request a duplicate from the employer helpline on 0300 200 3200.
However, this can only be made in respect of a full employer scheme and is not available for individual tax codes. If a tax code is required for an individual employee, the employer should contact the taxes helpline on 0300 200 3300.
Employment allowance
More than 850,000 businesses and charities are claiming the National Insurance employment allowance. Once claimed, it automatically applies for future years, until the employer tells HMRC otherwise.
From April 2015, the allowance will also be extended to individuals employing certain care and support workers. As a result, a family will be able to employ a care worker on a salary of up to £22,500 and pay no employer National Insurance. More information on how to claim will be available soon. Households employing nannies and other domestic support continue to be excluded from claiming the allowance.
Payment booklets
HMRC will stop automatically issuing payment booklets to new employers from April 2015. New businesses will be given information about how to pay HMRC electronically but will be able to request a payment booklet by contacting the payment enquiry helpline.
Updating employee addresses
Currently HMRC only accept details of new employees’ addresses from employers on their FPSs. From April 2015 HMRC will process changes to addresses for existing employees when a new one has been included on an FPS.
