Tax year end 2013/2014
At the end of the tax year, if you’ve paid any employees, you would normally submit an Employer Annual Return to HM Revenue & Customs (HMRC). This includes each employee’s P14 and a P35 that summarises the total tax and NICs due for the year.
Under Real Time Information (RTI), as you’ve submitted your employees’ tax and NIC information each period to HMRC, there’s no need to send a P14 or P35.
This year, there’s a much simpler year end process that consists of completing year end declarations on your final submission, submitting them to HMRC and producing each employee’s P60.
Although the year end process is simpler, it’s important to note the year end submission deadline has been brought forward to 19 April 2014. You still need to provide each of your employees with a form P60 by 31st May 2014.
Advice for beginning the new tax year:
- Please ensure your payroll software is updated with the new tax and NIC thresholds and 2013/2014 figures have been cleared down, ready for the new year.
- Increase tax codes by 56 for all employees with an “L” suffix (e.g. 944L becomes 1000L) 1000L is the new standard tax code for 2014/2015.
- Remove week 1 / month 1 indicators on all tax codes.
- Apply any new codes received from HMRC.
Abolition of the SSP Percentage Threshold Scheme
HMRC have confirmed that the scheme will be abolished from 6 April 2014 and so employers will no longer be able to make a recovery of Statutory Sick Pay (SSP) by reducing their PAYE payment, instead SSP will be fully funded by the employer.
Employers National Insurance – £2,000 Employment Allowance
From 6 April 2014 the Government is introducing an allowance of up to £2,000 per year for many employers to be offset against their employer Class 1 NIC liability (limits & exceptions apply).
For those of you who already take advantage of our Payroll Service, we will be making the appropriate adjustments for you.
For more information please contact Clare Walker in our York Office or go to http://www.hmrc.gov.uk/payerti/end-of-year/tasks.htm for year end tasks or https://www.gov.uk/employment-allowance for details of the employer allowance.