Payroll: need to know (Latest version)

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PAYE draft forms: P60 (2021 to 2022) 7 April 2021

Pages on GOV.UK that hold approved versions of form P60 have been updated to include the version for the 2021-22 tax year.

The draft form has been published as part of the section PAYE online Support for Software developers which aims to help software developers as they design and build payroll software.

PAYE draft forms: P60 (2021 to 2022)

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Corrections to payroll for tax year 2020-21 16 April 2021

As widely reported, the Earlier Year Update (EYU) is no longer a valid submission type for making amendments to the tax year ending 5 April 2021 (2021-21). Corrections relating to that tax year will need to be made using a Full Payment Submission (FPS).

Within the latest edition of the Employer Bulletin there is clarification on several points relating to the submission of an additional FPS to rectify earlier years’ payroll data.

Late reporting reason

Late Reporting Reason H should be applied to all FPS submissions that are used to correct earlier payroll information. This aligns the process with submissions that were received on, or prior to, 19 April.

Payment dates to report

The layout of the FPS remains unchanged and should be updated with the latest payroll information, for example, payment date, monetary values, leaving date etc. As the FPS will be an adjustment to the pay in the tax year then the payment date should be equal to, or later than, the last payment date reported in that year to ensure HMRC records are updated correctly.

An example is provided:

• An employee is employed all year and the final FPS for the year is submitted on 30 March 2019, with a payment date of 30 March 2019. It is then discovered in June 2019 that an error occurred in the Month 11 FPS. The FPS sent to make corrections should include the final pay date of 30 March 2019 and amended monetary values

Correcting employee NI submissions

Following April 2021, corrections to employee(s) National Insurance (NI) contributions for 2020-21 and subsequent years which involve a negative amount, but in situations where an employer is unable to refund the employee(s), then an FPS should be submitted and HMRC written to, to adjust the charge and refund employees. This scenario could potentially arise where an employee has left employment.

When writing to HMRC, the following needs to be included:

The Chartered Institute of Payroll Professionals

Payroll: need to know

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