Payroll seminar covering the most talked about legal requirement of RTI (real time information) reporting to HMRC. Delivered by Zee Shan of Smartfield Accountants in Leicester.

1. Payroll
RTI
Presenter: Mr Zee Shan

2. Content:
1. Intro to presenter
2. PAYE
3. Online Registration Process
4. Mistakes to avoid
5. RTI
6. Help & Advice
Presenter: Mr Zee Shan

3. Introduction of the
Presenter

4. Zee Shan Bawany CTA ACCA MAAT
Leicester Regional Tax Manager
Smartfield Accountants

5. Education
Qualification Centre
CTA (Chartered Tax Adviser) BPP Birmingham
ACCA (Association of Chartered Certified Accountants) De Montfort Uni
ATT (Association of Tax Technicians) FTC Birmingham
C & G 7407 Teacher Training Leicester College
AAT (Association of Accounting Technicians) Leicester College
BTEC National Diploma in Computing Leicester College

6. Employment
Smartfield Limited Tax Manager
Abbey Tax Plc Tax Consultant
Smith Hannah Ltd Head of Personal Tax
Leicester College Tax Lecturer

7. Hobbies

8. Hobbies

9. PAYE
System

10. Who needs to register PAYE Scheme?
Anyone who employs staff. It includes:
- Self Employed Individuals
- Ltd Co
- Partnerships
- Trust

11. Who does NOT need to register for a PAYE Scheme?
Anyone who employs staff. But:
- pays them below the National Insurance
Lower Earnings Limit (2015: £111 p/wk, 2014: £109 p/wk)
- all employees do not have another job
- none of the employees are receiving a state,
company or private pension
- no employee benefits are provided
http://hmrc.gov.uk/paye/intro/register.htm#1
http://www.hmrc.gov.uk/manuals/pommanual/PAYE20135.htm

12. Types of
PAYE Schemes

13. Types Of PAYE Schemes
-Normal PAYE Scheme
-Tronc Scheme
-Direct Payment Scheme (DOME)
http://www.hmrc.gov.uk/manuals/dmbmanual/dmbm520020.htm

14. Normal PAYE Scheme
3 Payment Options
-Monthly Payment
-Quarterly Payment
-Annual Payment

15. Payment
Options of
Normal
PAYE Scheme

16. Normal PAYE Scheme:
Monthly Payment
Pay by 19th of the following month.
If paying electronically then pay by
22nd

17. Normal PAYE Scheme:
Quarterly Payment
If the combined National Insurance
contributions and PAYE payments for
your employees and sub-contractors
averages less than £1,500 a month,
then Quarterly Payment Scheme can
be setup.

18. Normal PAYE Scheme:
Yearly Payment
If all payments on which tax and NICs are
due are paid to your employees annually
in a single tax month, you can ask HMRC
to be treated as an 'annual payer'. You
must use the same month every year, so if
this changes or you start paying your
employees more frequently, you will need
to tell HMRC.

19. Where to send payments
HM Revenue & Customs
Bradford
BD98 1YY

20. Online payments
https://www.santanderbillpayme
nt.co.uk/hmrc/scripts/nrpayform.
asp?pt=PAYE

21. Nil Online Payments
http://www.hmrc.gov.uk/tools/pa
yinghmrc/no-monthly-payment.
htm
Upto 30 April 2014 only

22. Nil Payments Notice
Call HMRC's Payment Helpline
on Tel 0300 200 3401

23. Registering
PAYE Scheme

24. Registering PAYE Scheme
Options:
1. Call 0300 200 3211
2. Online at:
http://www.hmrc.gov.uk/paye/intro/register-email.htm

28. £2,000 Discount!
The Employment Allowance is available
from 6 April 2014. If you are eligible you
can reduce your employer Class 1 NICs
by up to £2,000 each tax year.
https://www.gov.uk/employment-allowance-up-to-2000-off-your-class-1-nics

29. Operating
PAYE Scheme

30. Monthly
Vs
Weekly

31. Joiners: P46 or P45
Leavers: P45

32. Reports:
Wage slips
Gross & Net Pay
FPS And EPS

33. Yearly Forms:
P60
FPS
EPS

34. R T I
Real Time Information

35. R T I
HMRC Guide
http://www.hmrc.gov.uk/payerti/

37. Data Required

38. Full Payment Submission (FPS)
Why?
To let HMRC know who were paid and how much.
When?
By 19th of month following deduction even if paying
by 22nd, replacements can be sent
How?
Basic PAYE Tool or 3rd Party Software.

39. Employer Payment Summary (EPS)
Why? To reclaim statutory payment compensation YTD or CIS suffered
When? By 19th of month following deduction even if paying by 22nd,
replacements can be sent
How? Basic PAYE Tool or 3rd Party Software.
What else?
– To submit nil return or period of inactivity
– Even 1/4ly or annual payers must do monthly EPS saying ‘nil payment’?
– To submit return for year

40. Employer Payment Summary (EPS)
Extra details needed on Final EPS:
- Ceased Indicator
- Date scheme ceased
- Final Submission for Year
- Free of Tax Payments to employees
- Expenses and Benefits paid to employees
- Employees Out of UK
- Employees Pay to Third Party
- Forms P11D and P11D(b) are due?
- Service Company
http://www.hmrc.gov.uk/payerti/reporting/what-to-report.htm#9

41. Penalties under RTI
<50 Employees 6 March 2015
>50 Employees 6 October 2014
http://www.hmrc.gov.uk/payerti/reporting/late-reporting.htm#3

42. Penalties under RTI
No penalty will arise for the first month in each tax year where there is a
filing default. This means there are a maximum number of 11 fixed
penalties per tax year that can be charged for filing failures.
Number of
employees
Amount of the
monthly filing
penalty per PAYE
scheme
1 to 9 £100
10 to 49 £200
50 to 249 £300
250 or more £400

43. Submission deadlines
Final EPS : 19 April
EYU (Earlier Year Update): 19 May
P60 to employees : 31 May

44. Penalty for late submission of
Final EPS
£100 per 50 employees for each month or
part month you delay filing your return
after 19 May.
http://www.hmrc.gov.uk/paye/problems-inspections/annual-return-late.htm

45. Group Exercise
Complete P60

46. Case Study
Payroll Manager

47. Common Mistakes
Group discussion

48. Solution to Avoid Common Mistakes
1. PAYE Office Reference Number used in place of PAYE Reference
Number;
2. P14 form template used instead of P60 to hand out to employees;
3. Hand out the correct P60 to the correct employee. Mistakes
happen when two employees have the same initial and surname;
4. Enter the correct National Insurance Numbers for all the
employees, otherwise the State Pension benefit will not accrue;
5. Ask the employee to confirm his/her current address, to ensure
the address on the P60 is correct. If P60 is to be posted out to the
employee then it will reach the correct address.

49. Tax Table
Tax Year
14/15
£
Tax Year
13/14
£
Income Tax
Tax free income
Personal allowance 10,000 9,440
Rate
Basic rate: 20% 0 – 31,865 0 – 32,010
Higher rate: 40% 31,866 – 150,000 32,010 – 150,000
Additional rate: 45% Over 150,000 Over 150,000
http://www.hmrc.gov.uk/rates/it.htm

50. http://www.hmrc.gov.uk/rates/nic.htm
http://www.hmrc.gov.uk/paye/rates-thresholds.htm

53. Summary
- PAYE
- RTI

54. Group Discussion
3 Problems that you face when
operating the payroll and how
you overcome them.

55. Copy of slides
SlideShare.Net
Search term: “Payroll RTI Leicester”
Please do not send me e-mail after the event to request copies
because I do many of these event and it is hard to deal with
individual requests after the event.

56. Help & Advice
HMRC Employer Helpline
0300 200 3211
CIS Helpline 0300 200 3210

57. The End