Payroll year-end has arrived, here’s what you need to know for 2016/17
Today is payroll year-end, companies from around the UK will have been preparing for payroll year-end for some time, but what do you need to know for 2016/17? Here’s some of the key dates and information you’ll need over the next 12 months.
As an employer running payroll, you need to report directly to HMRC regarding the previous tax year and give your employees their P60s. Additionally, you should also be preparing for the next tax year so that you can hit the ground running. The 2015/16 tax year ends today on Tuesday 5th April, and the new tax year then begins on Wednesday 6th April.
So, what do you actually need to do for payroll year-end?
- On or before your company payday – Send your final payroll report of the year
- From 6th April – Update employee payroll records
- From 6th April – Update your payroll software
- By 31st May – Give your employees their P60s
- By 6th July – Report your employees expenses and benefits (P11D)
For this years’ payroll year-end, HMRC has simplified a few processes to make things easier for employers. Businesses will no longer be required to answer the seven extra questions on submissions they make to HMRC which were brought over from the old P35 form, which makes your job easier and your payroll software’s task for RTI simpler.
Remember to indicate ‘Final submission of tax year’ when submitting your latest RTI submission so that HMRC know not to expect another before the start of the 2016/17 tax year.
Tax code changes
For 2016/17, the basic Personal Allowance will rise to £11,000 and the basic rate limit with be £32,000. The threshold for PATE is £212 which totals at £917 per month. Additionally, the new emergency code for all employees is 1100L.
- Basic Rate (20%) – £1 to £32,000
- Higher Rate (40%) – £32,001 to £150,000
- Additional Rate (45%) – £150,001 and above
For employees living in Scotland, you should use an ‘S’ prefix to tax codes.
The government recommends that businesses using payroll software ensure that the RTI portion of the software incorporates the tax changes, which of course, IRIS payroll software does.
If you’re still looking for information on payroll year-end, be sure to check out our dedicated payroll year-end insight page, which is full of helpful information to help you plan out your next steps. Also available is our popular payroll factcard, now updated for 2016/17. The factcard contains helpful dates, figures and contact details and is free to download.
Additionally, don’t forget about stationery, you’ll still need P60s and payrolls so why not stock up now so you can hit the new tax year running. Or why not go digital and increase your payroll processing efficiency with the revolutionary IRIS OpenPayslips? IRIS OpenPayslips is a digital payslip distribution system, enabling your business to save on the traditional means of payslip and P60 distribution, employees can access payslips anytime and anywhere, saving your business time and money.
We offer free trials of IRIS OpenPayslips, so that you can see first-hand the benefits it can bring. Use the button below to register for your free trial today, and hit the ground running for the 2016/17 tax year.