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Sage and Year End best practices

22 March 2012

Payroll Year End (PYE) can be stressful when balancing deadlines with normal business tasks and activities, and there are so many things that need to be considered in the run up to PYE in order to be fully compliant. Follow these top tips to help your business run a successful payroll year end. Some were touched on last week when we spoke about starting the new Tax Year with a boost but they are worth mentioning again.

Know your deadlines
D-Day for employee online PAYE forms (P35 and P14 forms) is 19 May. Make sure you are acting now to make sure all appropriate paper work is in order by this date. Failure to meet this deadline will incur charges.
Make sure you’re registered! You can register as an employer with HMRC by email or by telephone, and to familiarise yourself with PAYE rules visit www.hmrc.gov.uk/paye

Planning is key - get ready for PYE before 6 April
• Put aside enough time to prepare for your PYE procedures and look at resources for Payroll Year End.

• Make sure you've ordered enough P60 stationery and that it's compatible with the tax year you're processing - you cannot use P60 forms from the last tax year.

• Check that your software is compatible with the tax year you're processing to ensure you're legally compliant.

• Check that you have a full tax year payment history for your employees i.e. 52 weeks or 12 months.

• Check that you're registered with HMRC for online submissions.

Automate wherever possible - file returns online
Every figure you submit for individual employees will need to be reconciled with your annual totals for tax, National Insurance and other deductions. Your (Sage) payroll software can carry out these checks for you throughout the year. Software can save extra work at year end by completing all the forms and filing them electronically to HMRC online.

Don’t forget to pay the taxman!
Having compiled the amount of tax and National Insurance that have already been paid during the year, you need to calculate the total amount due to HMRC for the year. Any amount outstanding must reach HMRC by 19 April (or 22 April if paying electronically). Make sure to allow enough time for postal and electronic repayments to reach the taxman in time or you may be liable for interest payments.

If in doubt, get expert help
The rules surrounding payroll, benefits and expenses can be complex and your circumstances are unique. If you discover a problem that you can't solve during the payroll year end, seek expert help from your payroll provider or a professional advisor.

There are other factors and Sage courses from Total Training Solutions that can help ensure you have a comfortable transition into the new financial year. Sage 50 Forecasting for example, helps you plan for the future of your business and there is never a more important time to do this than at Year End. The course teaches you to plan on a weekly and monthly basis so you can plan for busy periods and ensure all financial implications of business processes are accounted for and nothing is left to chance.

To enquire about any Sage course from Total Training Solutions please call our team on 0800 612 1299 or email info@tts-uk.com

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