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> Completing the tax year under RTI / The payroll year end process

The payroll year end process

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Under RTI, you no longer need to make P14 and P35 submissions at the end of the tax year, however you need to answer some declaration questions similar to those on the P35, and provide your employees with their P60s by 31 May each year.

How do I do this?

Tip: Why not print this information so you can mark off the tasks as you complete them?

Step Description  

1

End of year declarations

When you submit your final payroll details for the tax year, you need to make a number of declarations similar to those you used to make on the P35 form. The Finish Tax year wizard guides you through these.

See Producing your end of year declarations.

 

2

Internet Submission

You must now submit your year end information to HMRC online. Use this step to submit your final payroll details and declaration information directly to HMRC using Internet Submissions.

See Sending year end returns to HMRC.

 

3

Produce P60s

You must produce a P60 for every employee who is still working for you on 5 April. Employees who left your employments before 5 April must not receive a P60 from you. Check that your P60 forms show the correct tax year in the top right-hand corner.

See Producing your P60s.

 
  • Did you know that when producing P60s during the payroll year end process, you can choose to email them directly to your employees? You'll need to set up your software to do this. Find out more.

4

Take a backup

Having completed steps 1 to 3, we recommend that you take at least one backup.

 

5

Complete Year End

This step:

  • Archives all cumulative year to date values for the current tax year.
  • Removes any historical data which has been stored for more than the specified number of years in your software.
  • Detects any outstanding balances for statutory maternity pay (SMP), statutory paternity pay (SPP) and statutory adoption pay (SAP). Sage 50 Payroll carries forward the number of weeks already paid and the amount remaining then continues to calculate the correct amounts due in the new tax year.
  • Carries over cumulative values and outstanding balances for attachment of earnings orders. Only the Attachment Value YTD is cleared to zero. This value starts to accumulate from the beginning of the new tax year.
  • Carries over the total amount of holiday fund accrued to date.
  • Removes any loans that have been completed in the tax year. For example, those with a status of Paid or Written Off. Outstanding balances on all loans remain the same.
  • Removes all student loans that were completed in the current tax year.
  • If applicable, transfers mileage records from the current tax year, into the new one.

 

6

Distribute P60s

To comply with legislation, you must distribute your employee P60s by 31 May.

 

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