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Payroll Guides : Year End Procedures

Are you having difficulties following the instructions? Check the Year End FAQ... If you cannot find the answer you're looking for in the FAQ then please contact us (preferably by email unless you need an instant answer), or use the forum.

Some of the items outlined below don't apply to all users, and most of the points only take a minute or two of your time. We suggest that you consider printing this document out, and ticking off each completed item. Most of the items can be done in any order.

Enrol for HMRC PAYE online.  You need to register for a government gateway user ID and password (you may already have one of these for other reasons such as VAT online) and make sure that you have enrolled for PAYE online. You can do everything here. Here is some further HMRC information about the registration and enrolment process. We strongly suggest that you get this done now, because completing the process does involve a wait of a few days (HMRC has to send you a letter with your password in it, for security reasons).

You will be able to submit internet P14s/P35 virtually at the touch of a button even if you have more than 9 employees. A Bureau licence is needed if you have more than 30 employees. Not only does internet filing to HMRC save the time, effort, and worry associated with re-entering figures from Payroll One on different forms, but it is compulsory to send P14/P35 returns to HMRC electronically.

Adjust NI in this employment where necessary. Did you take over an existing payroll that had already been processed manually or with different payroll software in the middle of the 2013-14 tax year? If you did then you should already have adjusted pay and tax in this employment (on the employee PAYE tab)  to get correct tax calculations from Payroll One,  You need to get the adjusted NI up to date before year-end, or you won't be able to submit valid P14s/P35 at year end. There is a video about this on the Payroll One website. If no other payroll software was used during the year then you don't need to worry about adjusting NI.

Register the names of all your Payroll One employer(s), and download their registration keys. You may be already registered on the Payroll One website, and probably you have registered your employer name(s) on the Payroll One website too. If you haven't then get that done, and retrieve the employer registration keys from the internet. This has the additional benefit that your company name won't keep reverting to "Unregistered Company" every time you start up the payroll software.

Make sure that your employee details are reasonably complete and up to date. Have you filled in everyone's NI number, gender, and birthday where it is known? Fill in their addresses on the personal tab of each employee if you know them. Make sure that you have entered people's proper formal names. For example "David Oliver Smith" rather than "Dave Smith"

Make sure that you have completed the main tab of the employer form in Payroll One. •Enter the address, tax office (the three digit number on correspondence from HMRC), tax reference (the string of numbers/letters that follow the 3 digit number on correspondence from HMRC), HMRC user ID, and HMRC password. When entering the tax office, reference, HMRC user ID, and HMRC password do not confuse O and 0, and do not confuse I, 1, or l.

•Make the employer Report Year 2013, so that the reports and submissions you request will apply to the correct year.

•Enter the contact details too. These will go on your internet submission, and they'll make it easier for HMRC to contact you if they have any questions.

•To be ready for RTI also fill in the Accounts Office Reference on the employer form

Optionally, do a test transmission of the P14 and P35 data to HMRC. You can do a test transmission of your current data at any time once you have enrolled for PAYE online and completed the employer form. This has the dual benefits of familiarising you with the (simple) process of entering the year end data and reassuring you that when year-end comes your live transmission will be acceptable.

Having difficulty getting the internet test submission to transmit successfully? Please read the "troubleshooting" information in the F1 online help in the software.

Once you reach year end, the procedure is as follows:

Check that you are not running our software version 1.14.1. This version was on our website for a few days in the middle of February and it has a minor bug, which is that it adds 110 to L tax codes at year end rather than 134 (the incorrect 110 increment is published in numerous places, including several pages on HMRC's own website). The software version number is shown in the caption bar of the application whenever Payroll One is running. If you are running 1.14.1 then before running year end please select "Help / Get Latest Release" in the software to update the software before running year end. All other version numbers will work fine. If you have already run year end with 1.14.1 then all you need to do is add an additional 24 to L tax codes. For example 920L should be 944L.

Run the final period of the year in every payroll. Be aware that this year if you have weekly payrolls that end on a Friday there will be 53 weeks in the tax year (and likewise there is the possibility of 54 or 56 weeks in fortnightly or lunar payrolls that end on those days)

Once you are happy with the final period press the usual button at the bottom-right of the payroll form to advance to the next period. Note that in this case it will say => Year 2014. This button will also add 134 to employee tax codes for those employees with L suffixes. (If you are still running the Payroll One release for 2012-13 your software will be updated automatically at this point but will still retain the ability to handle 2012-13 payrolls if necessary, egg in the case of multiple companies. After the software update return to the payroll form and click the Year=>2014 button again).

Unlike a lot of other payroll software on the market the Payroll One software carefully stores each year's data so that you can still do your 2012-13 reports and submissions even though you've started processing 2013-14. The Payroll One software automatically uses appropriate calculations according the date of each payroll as it is calculated. This is particularly useful if you have weekly payrolls. You can carry on processing payrolls in 2013-14 before you've submitted 2012-13 to HMRC. But do not delete any of last-year's employees from your system until after you've filed P35/P14 for everyone. The HMRC helpline is telling some employers that you must file P35/P14 for 2012-13 before you can do any RTI filing for 2013-14, but they are wrong to say that. In fact you can freely file RTI messages for 2013-14 even if you haven't yet completed 2012-13 P35/P14.

Print the reports on the employer form. Print the P11 (Tax), P11 (NI), and P32. You should find these reports quite easy to understand. Have a look at them to see if you think they look correct for your company, because this is the data that will be summarised electronically when you submit the P14s and P35.

Submit the year end data to HMRC. You have until May 19th to do this, but don't delay. Get it done and out of the way! Then if you encounter a problem you won't be trying to solve that problem under time pressure. •Press the "Internet P35 & P14" button on the employer form and read through the tabs on the P35 submission.

•Check (and fill in if necessary) the box on the owing tab that shows the amount that you've already paid HMRC for the year.

•You will need to click the appropriate boxes on the Declaration tab, and everyone must tick the box that says: "I declare and certify that for the above tax year...forms P14 End of Year Summary for each employee or director for whom I was required to complete a form P11 Deductions Working Sheet (or equivalent record) during the year are all enclosed". Basically this is a declaration that you have told them about all of the employees. Payroll One will file all of your P14 documents automatically when you file the P35.

•Make sure that the "Test" box on the ESubmission tab is NOT ticked.

•You don't need to fill in the greyed out "HMRC Submission ID" on the e-Submission tab

•Click "Submit" on the e-Submission tab to actually file your return with HMRC

•Once you've done a correct live submission you should get a message from the software telling you that the transmission succeeded. You should also get a "Success" email from HMRC.

7. Having difficulty getting the internet submission to transmit successfully? Please try the authentication FAQ first, then if that doesn't help read the "troubleshooting" information in the F1 online help in the software.

8. Print the P60 report from the employer form. A P60 will be produced for every employee who was still employed at year end. Please note that P60s are not required for employees who have left. Payroll One prints P60s in colour on blank paper. If you have a lot of employees you can save coloured ink if you want to by selecting black and white printing in the Adobe Acrobat print dialog. You should give each employee their own P60, or send it through the post to them if that is more convenient.

9. Move the employer Report Year on to 2014. Once you've completed the internet submission and got all the reports that you need in 2012-13 you can move the Report Year on the employer form on to 2014 so that P11 and P32 you request subsequently will be for the new year. If you need any 2013 reports again you can just move the Report Year back again.

10. Don’t forget to file P11D Report (Expenses and Benefits). If you ticked the "P11D required" box on the P35 declaration you have until 6th July to file your P11D. You cannot file this through Payroll One because the expenses and benefits information that you need to file isn't available in the payroll system. You can file P11Ds directly on the HMRC website by logging in using your government gateway password.

Please let us know if you have any suggestions about these procedures. . Let us know if you think there is anything more we should have said, or anything that we could have made clearer.