Payroll year end 2020-21
Here is some helpful information to ensure that your year end runs smoothly.
[NB If esp Computer Services operates your payroll this is for information only as your payroll year end and claim for Employer's Allowance will be made within esp payroll bureau's Sage software].
As you are aware with the advent of RTI there is now no need to complete a form P35 as HMRC gathers the relevant information on a monthly basis.
However, the final FPS [Full Payment Submission] and EPS [Employer's Payment Summary] must be made by 19th April 2021 . If you are using the Sage Payroll Software I refer you to the following links:
Sage 50 Cloud Payroll Year End routines 2020-21 - https://www.sage.com/en-gb/blog/payroll-year-end/
Sage Business Cloud Payroll - see link https://www.sage.com/en-gb/blog/payroll-year-end/
Please refer to the appropriate link according to which payroll version you are using.
The essential steps you should take now are:
Ensure that your Sage Payroll Cover subscription is active and up to date
Ensure that you are able to download the upgrade software [if your Internet speed is not good you will need to contact Sage to order a disk in good time]
HMRC are no longer issuing forms P60 and so you will need to ensure that your printer ink or toner is full and have enough paper to be able to print out the forms direct. You do have the option of emailing P60's to your employees.
If you would like assistance with running your Sage payroll year end please contact me as a matter of urgency to ensure that you can be booked in with an appropriate appointment.
Here are helpful links from HMRC re:
Payroll annual reporting
Codes and thresholds for 2021-22
Notice for increase in the national living / minimum wage from April 2021
Auto-enrolment pension increases April 2019 – https://www.thepensionsregulator.gov.uk/en/employers/new-employers/im-an-employer-who-has-to-provide-a-pension/choose-a-pension-scheme/understanding-your-costs/making-contributions-to-your-pension-scheme- - These rates continue in the 2021-22 tax year.
EMPLOYMENT ALLOWANCE - 2020-21 - https://www.gov.uk/claim-employment-allowance
Employment Allowance allows eligible employers to reduce their annual National Insurance liability by up to £4,000. You will need to make a claim for this. If you are using Sage Payroll software, you will need to adjust for this before running your first 2021-22 payroll.
Eligibility You can claim Employment Allowance if you’re a business or charity (including community amateur sports clubs) and your employers’ Class 1 National Insurance liabilities were less than £100,000 in the previous tax year.
You can also claim if you employ a care or support worker.
As from 6th April 2016 payrolls with a single Director only will not be eligible for this allowance.
If you require any further advice please do not hesitate to contact esp Computer Services.