Year-End Payroll Reporting for HMRC
It’s that time of year again – preparing your end-of-year reporting for HMRC. There are so many steps to ensure compliance with HMRC, so how can you keep it all organised?
Final Payroll Reporting
Final payroll reports are due to HMRC on or before the last payday of the tax year (occurring before 5 April). The reporting can get complicated if you manage multiple payroll under the same PAYE scheme. You must include your end-of-year reporting with the last report submitted to HMRC. You may also have to submit additional reporting if your current payroll software does not have a “final submission” field or if you have made an error on a previously submitted Full Payment Submission (FPS) report.
If you have made any mistakes on your year-end reporting, there are opportunities to correct those mistakes based on what type of error was made. HMRC has a list of mistakes and deadlines for correcting the errors on their website – learn more
Updating Payroll Records
Updating employee payroll records is another part of end-of-year reporting. Employers must prepare the payroll records, identify the correct tax codes for the new tax year, and add the new tax codes to existing payroll software. HMRC sends employers new tax codes if employees need a new tax code or for general changes for employees who are entitled to standard tax-free personal allowances. Employers can potentially receive many tax code notices based on the type of employees, so HMRC has created an application called the PAYE Desktop Viewer to identify employee tax codes and notices in an easy to use format.
There are many key steps to ensure year-end payroll reporting runs smoothly. Payescape helps companies simplify year-end reporting with cloud-based technology and customised reporting. Our software updates each year so you stay ahead of changes, and our CIPP-certified staff helps your team ensure compliance. To learn more about simplifying your year-end processing and our easy-to-use payroll solutions, click here