Accountants are reminded to prepare for payroll year end

The payroll year end is nearly upon us and small businesses and contractor accountants are reminded that it is now mandatory for employers to file P14 and P35 certificates online.

Everyone who files online should make sure they are registered with HMRC and have received a password to use the service. The final date for filing is the 19th May so there should be time to register if you have not already done so. However, as with online self-assessment filing, there is a penalty if returns are submitted late, so it pays to make sure everything is in order well in advance.

Every year HMRC reports common online filing errors. These include employers quoting incorrect National Insurance numbers or omitting them completely and incorrect name and address details. If these fields are completed incorrectly, HMRC is unable to credit NICs to the right person and the money is held in a suspense account. This could affect an employee’s entitlement to contribution based benefits, including pensions.

Companies should already have received an April 2011 Payroll update from their software provider. On April 6th, you need to make the necessary amendments to employee’s income tax codes.

The government has also introduced Additional Statutory Paternity Pay for eligible fathers of babies due on or after April 3rd 2011. ASPP can be paid to fathers who take leave to look after their baby if the mother has returned to work during her statutory maternity leave.

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