ÀÏ˾»úÎçÒ¹¸£Àû

Annual payroll compliance

Produced by Tolley in association with
Employment Tax
Guidance

Annual payroll compliance

Produced by Tolley in association with
Employment Tax
Guidance
imgtext

Annual payroll compliance is the natural conclusion of the payroll compliance cycle (see the Monthly payroll compliance guidance note), bringing the tax year to its formal close. This is only done when all payments have been made in the tax year and is relatively simple under real time information (RTI). This is because full payment submissions (FPS) will have been completed every time the payroll is run, and employer payment summary (EPS) submissions will have been submitted monthly. See the Real time information guidance note.

RTI compliance

FPS and EPS

The FPS submits cumulative values each time the payroll is processed, for example, information regarding pay, tax, NIC and student loans. The EPS is submitted monthly and, amongst other functions, submits details of amounts that can be reclaimed, for example, CIS deductions suffered and statutory payments (SMP, SAP etc.).

Therefore, to close one tax year in RTI requires the submission of an indicator to HMRC which confirms that this is the final submission of the tax year. This can be done in one of two ways using the

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Ian Holloway
Ian Holloway

Payroll and Reward Consultant , Employment Tax, Personal Tax


Ian has been in the payroll profession for over 30 years, processing payrolls from all sectors, large and small. He moved from hands-on exposure in 2011 to become involved in educating the profession. His wide-ranging experience and up-to-date knowledge ensures he can impart this information to UK professionals through course material, social media, newsletters and face-to-face presentations.However, educating the profession cannot be achieved without knowing how the profession works on a day-to-day basis and involvement with hands-on administration is essential. So, today, Ian operates as a consultant and advisor and is involved with a vital aspect of the payroll and reward environment, that of working with the software that does a lot of the hard work for the profession.The return to being involved in a hands-on environment has not stopped his desire to inform, educate and train the UK payroll profession. Indeed, this is now better-achieved, as he can draw on real processing situations.Ian approaches education and communication very much from the perspective of how this will impact the software, the employer and the worker. So, whilst the legislation is vital, compliance and effective communication are paramount.Ian is Companion of the Institute for Certified Bookkeepers (ICB), committee member of the British Computer Society (BCS), a committee members of the ICAEW’s Tax Faculty and a Fellow member of the Chartered Institute of Payroll Professionals (CIPP).

Powered by
  • 29 Oct 2024 11:40

Popular Articles

Payment of tax due under self assessment

Payment of tax due under self assessmentNormal due dateIndividuals are usually required to pay any outstanding income tax, Class 2 and Class 4 national insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2025 for the 2023/24 tax year).

14 Jul 2020 12:52 | Produced by Tolley Read more Read more

Foreign exchange issues

Foreign exchange issuesOverview of foreign exchange provisionsForeign exchange (FX) movements are generally taxed following the rules applicable to the underlying income, expenditure, asset or liability on which they arise, broadly as follows:Capital assetsOn a realisation basis (ie on disposal)

14 Jul 2020 11:44 | Produced by Tolley Read more Read more

Computation of corporation tax

Computation of corporation taxCompanies pay corporation tax on the taxable total profits (TTP) generated in a chargeable accounting period (CAP).To ascertain whether the entity is within the charge to corporation tax, see the Charge to corporation tax guidance note.For more information on the type

14 Jul 2020 11:16 | Produced by Tolley Read more Read more