PayrollRTI

Presenter: Mr Zee Shan

Content:1. Intro to presenter2. PAYE3. Online Registration Process4. Mistakes to avoid5. RTI6. Help & Advice

Presenter: Mr Zee Shan

Introduction of the Presenter

Zee Shan Bawany CTA ACCA MAAT

Leicester Regional Tax Manager

Smartfield Accountants

EducationQualification Centre

CTA (Chartered Tax Adviser) BPP Birmingham

ACCA (Association of Chartered Certified Accountants) De Montfort Uni

ATT (Association of Tax Technicians) FTC Birmingham

C & G 7407 Teacher Training Leicester College

AAT (Association of Accounting Technicians) Leicester College

BTEC National Diploma in Computing Leicester College

Smartfield Limited Tax Manager

Abbey Tax Plc Tax Consultant

Smith Hannah Ltd Head of Personal Tax

Leicester College Tax Lecturer

Employment

Hobbies

Hobbies

PAYESystem

Who needs to register PAYE Scheme?

Anyone who employs staff. It includes:

- Self Employed Individuals- Ltd Co- Partnerships- Trust

Who does NOT need to register for a PAYE Scheme?

Anyone who employs staff. But:

- pays them below the National Insurance Lower Earnings Limit (2015: £111 p/wk, 2014: £109 p/wk)

- all employees do not have another job

- none of the employees are receiving a state, company or private pension

- no employee benefits are provided

http://hmrc.gov.uk/paye/intro/register.htm#1

http://www.hmrc.gov.uk/manuals/pommanual/PAYE20135.htm

Types of PAYE Schemes

Types Of PAYE Schemes

-Normal PAYE Scheme-Tronc Scheme-Direct Payment Scheme (DOME)

http://www.hmrc.gov.uk/manuals/dmbmanual/dmbm520020.htm

Normal PAYE Scheme

3 Payment Options

-Monthly Payment -Quarterly Payment-Annual Payment

Payment Options of

Normal PAYE Scheme

Normal PAYE Scheme: Monthly Payment

Pay by 19th of the following month.

If paying electronically then pay by 22nd

Normal PAYE Scheme: Quarterly Payment

If the combined National Insurance contributions and PAYE payments for your employees and sub-contractors averages less than £1,500 a month, then Quarterly Payment Scheme can be setup.

Normal PAYE Scheme:

Yearly Payment

If all payments on which tax and NICs are due are paid to your employees annually in a single tax month, you can ask HMRC to be treated as an 'annual payer'. You must use the same month every year, so if this changes or you start paying your employees more frequently, you will need to tell HMRC.

Where to send payments

HM Revenue & CustomsBradfordBD98 1YY

Online payments https://www.santanderbillpayment.co.uk/hmrc/scripts/nrpayform.asp?pt=PAYE

Nil Online Payments http://www.hmrc.gov.uk/tools/payinghmrc/no-monthly-payment.htm

Upto 30 April 2014 only

Nil Payments Notice

Call HMRC's Payment Helpline on Tel 0300 200 3401

RegisteringPAYE Scheme

Registering PAYE Scheme

Options:1. Call 0300 200 32112. Online at:

http://www.hmrc.gov.uk/paye/intro/register-email.htm

The Employment Allowance is available from 6 April 2014. If you are eligible you can reduce your employer Class 1 NICs by up to £2,000 each tax year.

https://www.gov.uk/employment-allowance-up-to-2000-off-your-class-1-nics

£2,000 Discount!

OperatingPAYE Scheme

MonthlyVs

Weekly

Joiners: P46 or P45

Leavers: P45

Reports: Wage slips Gross & Net Pay FPS And EPS

Yearly Forms:P60FPSEPS

R T IReal Time Information

R T IHMRC Guide

http://www.hmrc.gov.uk/payerti/

Data Required

Why? To let HMRC know who were paid and how much.

When? By 19th of month following deduction even if paying by 22nd, replacements can be sent

How? Basic PAYE Tool or 3rd Party Software.

Full Payment Submission (FPS)

Why? To reclaim statutory payment compensation YTD or CIS suffered

When? By 19th of month following deduction even if paying by 22nd, replacements can be sent

How? Basic PAYE Tool or 3rd Party Software.

What else?– To submit nil return or period of inactivity– Even 1/4ly or annual payers must do monthly EPS saying ‘nil payment’?– To submit return for year

Employer Payment Summary (EPS)

Extra details needed on Final EPS:

- Ceased Indicator- Date scheme ceased- Final Submission for Year- Free of Tax Payments to employees- Expenses and Benefits paid to employees- Employees Out of UK- Employees Pay to Third Party- Forms P11D and P11D(b) are due?- Service Company

http://www.hmrc.gov.uk/payerti/reporting/what-to-report.htm#9

Employer Payment Summary (EPS)

<50 Employees 6 March 2015

>50 Employees 6 October 2014

http://www.hmrc.gov.uk/payerti/reporting/late-reporting.htm#3

Penalties under RTI

No penalty will arise for the first month in each tax year where there is a filing default. This means there are a maximum number of 11 fixed penalties per tax year that can be charged for filing failures.

Penalties under RTI

Number of employees

Amount of the monthly filing penalty per PAYE scheme

1 to 9 £10010 to 49 £20050 to 249 £300250 or more £400

Submission deadlines

Final EPS : 19 April

EYU (Earlier Year Update): 19 May

P60 to employees : 31 May

Penalty for late submission of Final EPS

£100 per 50 employees for each month or part month you delay filing your return after 19 May. http://www.hmrc.gov.uk/paye/problems-inspections/annual-return-late.htm

Group ExerciseComplete P60

Case StudyPayroll Manager

Common Mistakes

Group discussion

Solution to Avoid Common Mistakes1. PAYE Office Reference Number used in place of PAYE Reference

Number;

2. P14 form template used instead of P60 to hand out to employees;

3. Hand out the correct P60 to the correct employee. Mistakes happen when two employees have the same initial and surname;

4. Enter the correct National Insurance Numbers for all the employees, otherwise the State Pension benefit will not accrue;

5. Ask the employee to confirm his/her current address, to ensure the address on the P60 is correct. If P60 is to be posted out to the employee then it will reach the correct address.

Tax TableTax Year

14/15£

Tax Year13/14

£

Income TaxTax free income Personal allowance 10,000 9,440

Rate Basic rate: 20% 0 – 31,865 0 – 32,010 Higher rate: 40% 31,866 – 150,000 32,010 – 150,000 Additional rate: 45% Over 150,000 Over 150,000

http://www.hmrc.gov.uk/rates/it.htm

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Summary- PAYE- RTI

Group Discussion

3 Problems that you face when operating the payroll and how you overcome them.

SlideShare.Net

Search term: “Payroll RTI Leicester”Please do not send me e-mail after the event to request copies because I do many of

these event and it is hard to deal with individual requests after the event.

Copy of slides

HMRC Employer Helpline0300 200 3211

CIS Helpline 0300 200 3210

Help & Advice

The End