payroll rti leicester
DESCRIPTION
Payroll seminar covering the most talked about legal requirement of RTI (real time information) reporting to HMRC. Delivered by Zee Shan of Smartfield Accountants in Leicester.TRANSCRIPT
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PayrollRTI
Presenter: Mr Zee Shan
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Content:1. Intro to presenter2. PAYE3. Online Registration Process4. Mistakes to avoid5. RTI6. Help & Advice
Presenter: Mr Zee Shan
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Introduction of the Presenter
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Zee Shan Bawany CTA ACCA MAAT
Leicester Regional Tax Manager
Smartfield Accountants
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EducationQualification Centre
CTA (Chartered Tax Adviser) BPP Birmingham
ACCA (Association of Chartered Certified Accountants) De Montfort Uni
ATT (Association of Tax Technicians) FTC Birmingham
C & G 7407 Teacher Training Leicester College
AAT (Association of Accounting Technicians) Leicester College
BTEC National Diploma in Computing Leicester College
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Smartfield Limited Tax Manager
Abbey Tax Plc Tax Consultant
Smith Hannah Ltd Head of Personal Tax
Leicester College Tax Lecturer
Employment
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Hobbies
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Hobbies
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PAYESystem
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Who needs to register PAYE Scheme?
Anyone who employs staff. It includes:
- Self Employed Individuals- Ltd Co- Partnerships- Trust
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Who does NOT need to register for a PAYE Scheme?
Anyone who employs staff. But:
- pays them below the National Insurance Lower Earnings Limit (2015: £111 p/wk, 2014: £109 p/wk)
- all employees do not have another job
- none of the employees are receiving a state, company or private pension
- no employee benefits are provided
http://hmrc.gov.uk/paye/intro/register.htm#1
http://www.hmrc.gov.uk/manuals/pommanual/PAYE20135.htm
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Types of PAYE Schemes
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Types Of PAYE Schemes
-Normal PAYE Scheme-Tronc Scheme-Direct Payment Scheme (DOME)
http://www.hmrc.gov.uk/manuals/dmbmanual/dmbm520020.htm
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Normal PAYE Scheme
3 Payment Options
-Monthly Payment -Quarterly Payment-Annual Payment
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Payment Options of
Normal PAYE Scheme
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Normal PAYE Scheme: Monthly Payment
Pay by 19th of the following month.
If paying electronically then pay by 22nd
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Normal PAYE Scheme: Quarterly Payment
If the combined National Insurance contributions and PAYE payments for your employees and sub-contractors averages less than £1,500 a month, then Quarterly Payment Scheme can be setup.
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Normal PAYE Scheme:
Yearly Payment
If all payments on which tax and NICs are due are paid to your employees annually in a single tax month, you can ask HMRC to be treated as an 'annual payer'. You must use the same month every year, so if this changes or you start paying your employees more frequently, you will need to tell HMRC.
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Where to send payments
HM Revenue & CustomsBradfordBD98 1YY
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Online payments https://www.santanderbillpayment.co.uk/hmrc/scripts/nrpayform.asp?pt=PAYE
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Nil Online Payments http://www.hmrc.gov.uk/tools/payinghmrc/no-monthly-payment.htm
Upto 30 April 2014 only
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Nil Payments Notice
Call HMRC's Payment Helpline on Tel 0300 200 3401
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RegisteringPAYE Scheme
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Registering PAYE Scheme
Options:1. Call 0300 200 32112. Online at:
http://www.hmrc.gov.uk/paye/intro/register-email.htm
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The Employment Allowance is available from 6 April 2014. If you are eligible you can reduce your employer Class 1 NICs by up to £2,000 each tax year.
https://www.gov.uk/employment-allowance-up-to-2000-off-your-class-1-nics
£2,000 Discount!
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OperatingPAYE Scheme
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MonthlyVs
Weekly
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Joiners: P46 or P45
Leavers: P45
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Reports: Wage slips Gross & Net Pay FPS And EPS
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Yearly Forms:P60FPSEPS
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R T IReal Time Information
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R T IHMRC Guide
http://www.hmrc.gov.uk/payerti/
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Data Required
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Why? To let HMRC know who were paid and how much.
When? By 19th of month following deduction even if paying by 22nd, replacements can be sent
How? Basic PAYE Tool or 3rd Party Software.
Full Payment Submission (FPS)
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Why? To reclaim statutory payment compensation YTD or CIS suffered
When? By 19th of month following deduction even if paying by 22nd, replacements can be sent
How? Basic PAYE Tool or 3rd Party Software.
What else?– To submit nil return or period of inactivity– Even 1/4ly or annual payers must do monthly EPS saying ‘nil payment’?– To submit return for year
Employer Payment Summary (EPS)
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Extra details needed on Final EPS:
- Ceased Indicator- Date scheme ceased- Final Submission for Year- Free of Tax Payments to employees- Expenses and Benefits paid to employees- Employees Out of UK- Employees Pay to Third Party- Forms P11D and P11D(b) are due?- Service Company
http://www.hmrc.gov.uk/payerti/reporting/what-to-report.htm#9
Employer Payment Summary (EPS)
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<50 Employees 6 March 2015
>50 Employees 6 October 2014
http://www.hmrc.gov.uk/payerti/reporting/late-reporting.htm#3
Penalties under RTI
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No penalty will arise for the first month in each tax year where there is a filing default. This means there are a maximum number of 11 fixed penalties per tax year that can be charged for filing failures.
Penalties under RTI
Number of employees
Amount of the monthly filing penalty per PAYE scheme
1 to 9 £10010 to 49 £20050 to 249 £300250 or more £400
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Submission deadlines
Final EPS : 19 April
EYU (Earlier Year Update): 19 May
P60 to employees : 31 May
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Penalty for late submission of Final EPS
£100 per 50 employees for each month or part month you delay filing your return after 19 May. http://www.hmrc.gov.uk/paye/problems-inspections/annual-return-late.htm
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Group ExerciseComplete P60
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Case StudyPayroll Manager
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Common Mistakes
Group discussion
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Solution to Avoid Common Mistakes1. PAYE Office Reference Number used in place of PAYE Reference
Number;
2. P14 form template used instead of P60 to hand out to employees;
3. Hand out the correct P60 to the correct employee. Mistakes happen when two employees have the same initial and surname;
4. Enter the correct National Insurance Numbers for all the employees, otherwise the State Pension benefit will not accrue;
5. Ask the employee to confirm his/her current address, to ensure the address on the P60 is correct. If P60 is to be posted out to the employee then it will reach the correct address.
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Tax TableTax Year
14/15£
Tax Year13/14
£
Income TaxTax free income Personal allowance 10,000 9,440
Rate Basic rate: 20% 0 – 31,865 0 – 32,010 Higher rate: 40% 31,866 – 150,000 32,010 – 150,000 Additional rate: 45% Over 150,000 Over 150,000
http://www.hmrc.gov.uk/rates/it.htm
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Summary- PAYE- RTI
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Group Discussion
3 Problems that you face when operating the payroll and how you overcome them.
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SlideShare.Net
Search term: “Payroll RTI Leicester”Please do not send me e-mail after the event to request copies because I do many of
these event and it is hard to deal with individual requests after the event.
Copy of slides
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HMRC Employer Helpline0300 200 3211
CIS Helpline 0300 200 3210
Help & Advice
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The End