Chartered Tax Advisers & Accountants

EMPLOYERS – DEADLINES AND NEW TAX YEAR END PROCEDURES

Published On: 30 March 2015
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Due to the introduction of RTI, employers are no longer required to submit forms P35 at the end of the tax year.  Instead it is necessary to submit a final Full Payment Submission (FPS) to HM Revenue & Customs (HMRC) on or before the final payment date of the tax year.  If you have yet to do so, do this at the same time as your FPS.

From 6 March 2015 HMRC will accept a final FPS or EPS with or without a completed checklist.  Your EPS is your electronic monthly submission summary of relief’s available which is due to be submitted by the 19th of each month.

If however you have already submitted your final FPS you have until 19 April 2015 to submit a revision.  In addition, if you have run your final FPS and forgot to select that it was final, you can arrange for an EPS final submission.

Following this you should make sure that all your employees receive copies of their forms P60s by 31 May 2015.

Please also be aware of the following changes which will take effect in the upcoming tax year which you will need to be factor into your payroll runs:

  • No Class 1 Secondary National Insurance Contributions (NIC) due on earnings up to Upper Secondary Threshold of £815 per week for employees under the age of 21.
  • No employer or employee NIC due on earnings under Primary Threshold of £155 per week, £672 per month or £8,060 per year.
  • Student loan threshold has increased to £17,335.
  • Transfer £1,060 of spouse’s unused personal allowance – from April 2015 taxpayers will be able to transfer up to £1,060 of their unused personal allowance across to their spouse.  HMRC plan to contact employees who they feel are likely to be affected and ask them to register their interest.  Those who registered will then be approached by HMRC and invited to apply.  HMRC intend to issue two new tax suffix letters for tax codes to cater for the transfers.