July 26 2014 Latest news:
Friday, March 28, 2014
Real time information issues have prompted HM Revenue & Customs to delay late filing penalties for payroll in-year returns – but year-end returns are due a month earlier than in previous years.
HELEN GARRETT, of Wheelers accountants in Wisbech, looks at the implications for employers.
The past year has seen radical changes in the way employers report payroll information to HM Revenue & Customs and pay the tax due.
As the PAYE year end approaches, the first thing to remember is that the deadline for submitting your end of year declarations is April 19.
This is not only a month earlier than in the past, but also falls over the Easter weekend. For most employers who will be closed over the holiday weekend, this means your latest possible filing date is April 17.
The process of doing your year-end declarations should be simpler this year, under the real time information regime.
However, there are still a series of tasks to work through before you can submit. These include processing your final pay period, updating your employee list and processing leavers as well as submitting your final Full Payment Submission (FPS) and/or Employer Payment Summary (EPS) returns.
There has been much coverage of the problems that the new real time information reporting systems have encountered and whilst, in the main, the systems work well there are sufficient unresolved issues to cause HMRC to rethink its policy on late filing penalties in the short term.
HMRC has pushed back the deadline and overdue filing will not now incur an automatic penalty until October 2014. Late payment penalties will commence in April 2015.
However, the application of interest on late payments is not to be put back - it will start this month as planned.
The safest way to avoid both penalties and interest is to ensure that you both file and pay on time. Good software tools and well-trained staff are key to your success in this.
Using a payroll bureau is something that works for many small and medium sized businesses as both tools and staff are dedicated to the payroll process and kept up to date accordingly.
• For more information about this, or to discuss the benefits of using a payroll bureau, contact Helen Garrett on 01945 582547 or e-mail firstname.lastname@example.org
Alternatively, follow Wheelers on Twitter at @WheelersAccount.