COMPLIANCE
M any events are happening in May: the coronation of King Charles III, the Eurovision song contest and national doughnut week, to name a few. But I’m sure the highlight of the month for employers will be submitting the P60 information for their employees. We understand many payroll professionals find themselves glazed and confused, particularly around this time of the year, working to tight deadlines. As we enter the early stages of another tax year, we feel that now is the ideal time to plan for the year ahead, ensuring there’s sufficient time for all payroll activities, while maintaining a stress-free work environment. At PSTAX, we’re constantly aware of the pressure our clients are under, not only with regards to payroll, but also budgeting and financial planning. There are several deadlines to meet during a tax year and failing to do so could have adverse effects for the organisation and its employees. From the monthly real time information submissions, to the quarterly P46 returns and the annual P60 or P11D forms, it’s essential to have systems in place to help keep on top of demanding workloads. It’s important to implement a rigid monthly calendar and you can do so by applying the follow rules: l define the various stages of the monthly payroll cycle, covering the return and payment due date, the cut off for submission and the deadline by which the payroll must be delivered l allow sufficient time for each of the above stages, to ensure the necessary information has been gathered l collaborate with neighbouring teams to ensure the timely transfer of any relevant payroll updates by the cut-off deadline.
It’s essential each wheel in the cog gives attention to the process, and implements changes in order to support that process l once the monthly calendar has been agreed, roll this out on a yearly schedule, taking into account weekends, non-work days and holidays, and share with all relevant parties. By making use of such a calendar, an organisation becomes proactive and in control of the demanding schedule. Occasionally, there’ll be a spanner in the works, with external factors outside our control. This has never been more prevalent in recent years than with Covid-19 and the introduction of the coronavirus job retention scheme, as well as the change of National Insurance (NI) rate mid-way through the 2022/23 tax year. “The overriding point here is that, despite not being able to control these changes, it’s possible to control our reaction to them” Many payroll staff may shudder at the thought of the furlough scheme and its complications, or perhaps the various changes introduced by HMRC regarding benefits in kind and claimable expenses during lockdown. Both unexpected changes caused severe panic and uncertainty among employees and often, it’s the payroll staff who are the first port of call and face the brunt of the issues and any dissatisfaction. The overriding point here is that, despite
not being able to control these changes, it’s possible to control our reaction to them. How can payroll staff cope with abrupt changes? Hopefully by now, a robust monthly calendar has been introduced and / or is a work in progress. If not, that’s the first step to ensuring that, even when faced with uncertainty, the essential deadlines throughout the year are met. With the sea of information out there and with busy schedules, it’s important to use your time wisely. One way individuals can keep up to date with legislative changes and future developments is by attending tax webinars, seminars or forums, where topical and insightful conversations are at the forefront. Indeed, PSTAX hosts regular seminars and Microsoft Teams calls to provide updates to payroll staff and key stakeholders. The demands of payroll must be respected by wider business areas to ensure a seamless process. Ultimately, payroll is a vital part of any business and to not give it full attention will only lead to dissatisfied employees, stressed out staff and countless late filing penalties from HMRC. We recommend a contact from the payroll team is involved in key stakeholder meetings, to ensure the deadlines are accounted for in any operational decision- making process. In conclusion, you can either let the numerous payroll deadlines control your workflow, or you can be proactive and take steps to create an efficient and stress-free environment while ensuring submissions are made in a timely manner. Being aware of the key payroll deadlines and dates throughout the calendar year will allow for some degree of stability in an ever-changing and unpredictable environment. n
Monthly deadlines 5th of every month – tax month end date 19th of every month – deadline for paying pay as you earn (PAYE) and National Insurance contributions (NICs) to HM Revenue and Customs (HMRC) (if you’re using a non-electronic method) 22nd of every month – deadline to pay PAYE and NICs to HMRC (if you’re paying electronically) Annual tax deadlines 5 April – end of the tax year 6 April – start of the new tax year 31 May – latest date to provide P60s to each of your employees, if you have any (for the previous tax year). The P60 summarises their total pay and deductions for the previous tax year 6 July – form P11D deadline. You must inform HMRC of all expenses and benefits received by employees 19 July – Pay any class 1A NICs due on form P11Ds. The payment must reach HMRC by 22nd July, or 19th July if submitting payment by post
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| Professional in Payroll, Pensions and Reward |
Issue 90 | May 2023
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