The 5th April 2014 will see the end of the first complete year of running PAYE through Real Time Information (RTI). One of HMRC ‘s intentions when introducing the new filing format was to make it easier for employers to send information to them by submitting a Full Payment Submission (FPS) every time a payment is made to an employee instead of at the End of Year. Initially started with trepidation, a few months in and it became the norm so now that the final pay run of the year is fast approaching it is clear to see how easy RTI has made the End of Year process.
No longer do you need to print off reams and reams of P11’s or even do an End of Year reconciliation of tax and NIC payments (as this was done month by month when submitting the FPS’s), all that needs to be done is to submit an FPS on or before your final pay run of the year, indicating that this will be your final submission. You will need to answer a few questions regarding your business and employee’s (one of which relates to P11D benefits and expenses) which must be answered before you can send the final FPS.
Please note that in previous years the deadline for the End of Year submission was the 19th May. However, as you are sending it through an FPS, this must be sent to HMRC by the 5th April 2014, and anything received after this date may be subject to a late filing penalty (as was always the case in previous years).
You will still need to provide P60 End of Year Certificates to all current employees by the 31st May 2014.
As stated above, you will be asked on the final FPS whether you have made available any benefits or expenses to your employees. If the answer is yes then you will need to complete and submit a P11D for each employee together with a form P11D(b). As in previous years these will be prepared on paper and need to be submitted to HMRC no later than the 5th July 2014. The Class 1A National Insurance that is due will need to be paid by the 19th July 2014.