Navigating the year-end processes for Xero Payroll can seem daunting, especially with the multitude of deadlines that loom over every payroll manager. However, you can ensure a smooth transition into the new tax year with my handy guide ...
Transitioning smoothly to the new payroll year not only minimises stress, but also helps maintain effective payroll practices!
First and foremost, it's crucial to mark your calendar for the payroll year-end, typically landing on the 5th of April each year. This date serves as the deadline for your final payroll calculations. Do remember, though, the last day you process your payroll could be before this date.
Use Xero Payroll's tools to easily determine this based on your pay frequency - monthly, weekly, or otherwise. It's essential to have everything lined up so there's no pressure to rush the final steps!
Next, verify all details regarding your employees. Pay particular attention to new starters and leavers; this is the ideal time to double-check your payroll records. Effective communication with your management can prevent any discrepancies, ensuring that you accurately report all payment data to HMRC through your Full Payment Submission (FPS).
Speaking of submissions, once you have confirmed all particulars, you'll want to conduct your final pay run. This process should be executed in the last month of the tax year, ensuring that you capture all income and deductions accurately.
If necessary, Xero Payroll allows you to run nil payments for employees who may no longer be with you. After executing the final pay run, remember the submission of FPS and, if applicable, the Employer Payment Summary (EPS) to HMRC must occur by the 19th of April.
"After your submission is confirmed, the next step is to prepare and distribute P60s!"
This document is vital as it summarises each employee's earnings and tax contributions for the year. It's legally required that you provide these by the 31st of May to all employees who were on your payroll on the final day of the tax year. Make sure to check whether your payroll software, like Xero, has already generated these documents for seamless distribution.
Finally, you should prepare for the changes that come with a new payroll year. Start by reviewing the P9X document released by the government, which outlines personal allowances and updated tax codes. Regularly check elements like student loan thresholds, National Insurance contributions, and any childcare voucher schemes to ensure compliance with HMRC regulations.
Transitioning smoothly to the new payroll year not only minimises stress, but also helps maintain effective payroll practices. Embrace the tools provided by Xero Payroll to streamline these processes and keep your business compliant.
With this checklist in hand, you are well on your way to mastering the intricacies of payroll year-end in the UK. Whether it's the first time you're diving into this complex world or you're a seasoned pro, Xero Payroll can be your best ally in navigating this vital period with ease.
And, of course, your Bookkeeping Buddy is here to help.
If anything I've written in this blog post resonates with you and you'd like to discover more about Xero Payroll, it may be a great idea to give me a call on 01604 217365 and let's see how I can help you.
Alison loves bookkeeping and supporting bookkeepers. She has been helping clients to be better bookkeepers in Sage 50 for over 24 years and has been Xero Accredited in accounts and payroll for a number of years too.
She specialises in a very unique hand-holding method of training, helping bookkeepers and business owners to use their accounts software as and when they need support in setting up and producing their invoices, reports and financial information.
Alison combines her role at Silicon Bullet with her Forever Living network marketing businesses and is often to be seen at business networking meetings as she likes to keep busy.
You know what they say: if you want something done well ask a busy person!
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