Pegasus Opera Users – Key steps/dates for Payroll year endThe 2017/18 payroll year ends on 5 April which means it’s almost time to process your year end. The introduction of RTI back in 2013 made the process much simpler, but it can still be a daunting task for some. To help things run smoothly, Pegasus has provided these key steps and dates for your diary: 1: Send your final FPS and EPS by 5 April 2018 You should send your final Full Payment Submission (FPS) on or before your employees’ last payday before the tax year ends on 5 April. If you don’t send your FPS by 5 April 2018 it’ll be classed as a late submission but HMRC will actually accept them until 19 April 2018. After this date they’ll no longer be accepted and you will need to send an Earlier Year Update submission (EYU) instead which highlights the difference between your last submitted report and the final figures for the 2017/18 tax year. If you need to send an Employer Payment Summary (EPS), you should send this by 19 April 2018. If you make submissions after this date you may be charged a penalty of £100 per 50 employees for each month your report is late. 2: Update employee records to transfer payroll into the new tax year as soon as possible A large but essential task is updating the payroll records for every employee working for you on or after 6 April 2018. You’ll need to prepare a payroll record, identify the correct tax code to use for them in the new tax year and enter it into your payroll software. The tax code increases are as follows for the 2018/19 tax year commencing 6th April 2018:
- Employees with L based tax code: increase by 35 points
- Emergency tax code will be 1185L wk/mnth 1
- HMRC may send you tax code notices for individual employees. If this happens, you should overrule the standard increase values.
- P9T form: HMRC will send you a P9T form highlighting any employees that need a new tax code.
- P9X form: this will contain general changes for any employees whose tax code ends in L.