One of the most important things to get right first time is your yearly payroll returns to HMRC, so planning ahead can ensure that you don’t end up paying a fine for a late or incorrect submission.
You are required by law to submit returns by May 20th, to enable HMRC to monitor National Insurance and PAYE deductions from your employee’s wages. This is to ensure that your calculations conform to all current government taxation legislation. As the legislation changes every year, it is crucial that you are up to date on the latest specifications for businesses, regardless of size.
By setting aside time early to complete P14/60s and ensure that your payroll details contain the correct PAYE information will help you to avoid a fine for incorrect submissions. Ensure that your P11 figures are correct by using accredited payroll software and ensure that you have not made any processing errors.
If in doubt, ask…
You can submit your returns on time by utilising the HMRC online submission facility. You do need to register with HMRC for online submissions and your payroll software has to be accredited by the Inland Revenue. Remember it is compulsory to submit all documents online. Paper returns are no longer accepted.
However, your first point of contact should be your company accountant, as the vast majority of accountancy firms also deal with payroll issues. Alternatively, contact a payroll services company to take care of your end of year payroll issues – it costs from as little as £15 a month for up to five employees.
Outsourcing the payroll is one of the best things you can do for your business.