When running your UK payroll operations, there’s no room for error. Paying your employees on time relies on submitting the relevant — and correct — payroll information to HMRC on time.
And with so many deadlines to meet throughout the year, you’ll have to be on the ball with all the dates to make sure you’re not scrambling around at the last second, which could ultimately lead to costly mistakes or missed deadlines.
There’s a lot to think about. So, how can you be sure you’re staying on top of it all?
Save the date(s)
With the new tax year coming into effect at the start of every April, Q2 is always a busy month for payroll departments. But what exactly do you need to submit?
All employee payroll records need updating on 6 April 2022 unless your business runs against an alternative tax year. So, you’ll need to prepare a payroll record and enter the right tax code into your payroll software for every employee. You also need to include everyone who’s worked for you in the previous tax year: even if they’ve already left.
Your final payroll report, or Full Payment Submission (FPS), for the previous tax year must be submitted on 19 April 2022 for every employee. If applicable, you’ll also have to submit an Employer Payment Summary (EPS) by this date. The EPS is only required if you didn’t pay any employees in the previous tax month (for example, if you’ve recently set up a new company).
If you send a late FPS or EPS without a valid reason, you’ll receive a penalty that’s calculated based on the number of employees you have. However, HMRC may send you a specific fine based on an estimate of how much you should pay if you don’t submit your FPS on time or fail to send an EPS.
It’s also worth noting that the UK will see a mandatory 1.25% increase in employee and employer National Insurance contributions from April 2022.
You must supply anyone employed on 5 April (or anyone you’ve filed an FPS for) with a P60 by 31 May 2022, either on paper or electronically. This form is only required once a year and should contain details of the employee’s total income, tax deducted, a breakdown of National Insurance contributions and details of any other deductions or statutory amounts received.
July means reporting on employee expenses and benefits using P11D forms. All employees must receive a P11D by 6 July 2022 containing all information for the 2021/2022 tax year, with submission taking place via HMRC’s PAYE Online Service.
Payment of Class 1A National Insurance, via form P11D(b), is required by 22 July 2022 (or 19 July if submitting by post). And if you’ve paid employees’ benefits or expenses through your payroll, you’ll also need to submit a P11D(b).
If any inaccurate information is submitted, you’re likely to be charged a penalty. And if your P11D(b) is late, you’ll get a fine of £100 for every 50 employees.
On 6 October 2022, any pension administrators must provide scheme members with a savings statement if their pension inputs in 2021/2022 exceed the annual allowance.
And 22 October 2022 marks the deadline for electronic payments of tax and National Insurance due under PAYE settlement agreements for 2021/2022. The deadline falls on 19 October for non-electronic payments.
With January behind us, we’re well into Q1 of 2022 — and a handful of key dates for businesses have already passed. But it’s never too early to prepare for next year…
When 31 January 2023 comes around and self-assessment tax returns are due, your payroll department is likely to be inundated with requests for payslips, details of National Insurance contributions and copies of P60s and P11Bs. Wouldn’t it be much easier if employees could access all this information directly without having to ask the payroll or HR departments?
Plus, it’s no good getting a reminder in your calendar on the day important payroll documentation is due. To ensure you’re submitting everything on time, you’ll have to be a few steps ahead of the game and have constant, quick access to the relevant information. If you’re storing data in dozens of different locations, it can quickly become confusing when approaching critical deadlines. So, what if you could access every employee’s payroll data all in one place, at the click of a button?
Compliance at your fingertips
Outsourcing your UK payroll to a payroll provider like TopSource Worldwide gives you access not only to in-country expertise from a knowledgeable team but also to an ultra-secure platform from which you can manage your payroll with ease.
TopSource Worldwide’s Portico HR system is a simple-to-use platform that provides 24-hour access to all the employee data you need to complete your payroll submissions on time. And thanks to the employee self-service feature, staff can also view and update their personal details, access payslips or manage expense claims and annual leave allowance — freeing your payroll and HR departments from admin requests.
Under the GDPR, businesses have a legitimate reason to store and process employee data for payroll. But due to the highly sensitive nature of payroll data (e.g. names, addresses, bank details and salary levels), the environment in which you store and manage employee data must be unfalteringly secure.
Portico provides a secure and flexible way to compliantly store payroll data in line with all UK data protection regulations and payroll legislation. The platform is certified to meet the GDPR, and as it’s a cloud-based storage system, Portico also reduces the risk of losing data.
Are you ready to take control over your UK payroll and ensure your payroll processing is GDPR compliant? It’s what we do best. Contact us today to find out how we can facilitate your UK payroll.