HMRC has issued its last-minute advice for employers about submitting their final PAYE reports for 2019/20 and preparing for 2020/21.
End of year.
As usual, this time of year is a busy one for employers. There are several routine but important actions you need to take plus one or two new ones
When you run your last payroll for 2019/20 you must use the final submission indicator in the full payment submission (FPS) to notify HMRC or it will
assume there’s more to come and bombard you with reminders. If your software won’t accept the final report indicator on an FPS, submit an employer
payment summary (EPS) with the indicator ticked instead. If you simply forgot to use the indicator, send an EPS with the indicator ticked to show
that you didn’t pay anyone in the final pay period and use the final submission indicator. The deadline for your final FPS or EPS for 2019/20 is
19 April. If you find a mistake in your 2019/20 figures, there are different ways to correct it depending on the software you use.
Updating codes for 2020/21.
HMRC has just completed the issue of P9 notice of coding email and paper notifications of new tax codes which you must apply for your employees. The
codes have been calculated using 2019/20 rates and thresholds because those for 2020/21 will not be definite until any changes announced in the
Budget are made. If this is the case, you’ll receive a P6b notice with detail of the new codes which you should implement on the next payroll run.
Changes to the employment allowance mean that entitlement will not be automatically carried forward to 2020/21 and you must include a claim through
your payroll software. Don’t forget to download and install the updated payroll app from your software provider or HMRC’s “Basic PAYE Tools”. Finally,
check that your employees’ pay is at least equal to the new national minimum/living wage rates which apply from 6 April.
Make sure the “final submission” indicator is used for your last payroll run for 2019/20 by 19 April, you claim the employment allowance for 2020/21
and your employees’ pay is at least equal to the new national minimum wage rates.