First time users: Download and install Basic PAYE Tools

Transcription

1 Basic PAYE Tools First time users: Download and install Basic PAYE Tools You can use this guide from 2nd April 2015 Updated: 2 nd April

2 Contents Introduction How to download, install and set up Basic PAYE Tools Step 1: Register with HMRC as an employer and enrol to use Online Services Step 2: Check your computer is ready to download Basic PAYE Tools Step 3: Select the software that matches your computer & operating system Step 4: Download and install Basic PAYE Tools Step 5: Open Basic PAYE Tools Step 6: Set up your 'employer' section Step 7: Set up your 'employees' details Step 8: Start using Basic PAYE Tools Updated: 2 nd April

3 Introduction The Basic PAYE Tools is software that you download onto your computer. It will help you run your payroll throughout the year. It is designed for employers who have nine or fewer employees, and has been updated so that you can use it to work out payroll deductions and then report payroll information online in real time. Basic PAYE Tools will: record your employees' details work out and record your employees' pay, tax, National Insurance contributions and any student loan deductions every payday generate the payroll data that you need to send to HM Revenue & Customs (HMRC) in real time, including starter and leaver information produce an 'Employer payment record' that shows you how much you need to pay HMRC help you to work out statutory payments such as Statutory Sick Pay and Shared Parental Pay using the calculators provided allow you to claim the NICs Employment Allowance This guide will take you though the process of downloading, installing and setting up Basic PAYE Tools. The screenshots in this guide are the main ones you will need to know about, but does not include them all as there are some that most employers will not use because they apply to more unusual circumstances. Due to continuing improvements, the screens in Basic PAYE Tools may look slightly different to those shown within this Guide. Once you have completed the steps in this guide you will be ready to start using Basic PAYE Tools. At that stage, you may want to read (and you may want to print) the user guide 'All users: Using Basic PAYE Tools. It can be found on the HMRC website by following the link below. All users: Using HMRC's Basic PAYE Tools Updated: 2 nd April

4 How to download, install and set up Basic PAYE Tools Step 1: Register as an employer with HMRC and enrol to use online services To start using Basic PAYE Tools you must have: 1. Registered as an employer with HMRC. If you have not yet registered with HMRC as an employer please visit the HMRC website page How to register as an employer. If you are already registered, you will have an Employer PAYE reference and an Accounts Office reference. 2. Registered and enrolled to use HMRC's PAYE Online Services. If you have not yet done this please visit the HMRC website page Register for HMRC taxes and sign up for online services. If you are already registered, you will have a User ID and Password. Your user ID is sometimes referred to as the Government Gateway user ID. If you've been an employer for a while, these are the user ID and password that you have used for sending other employer data such as your forms P35 and P14 to HMRC online. Step 2: Check your computer is ready to download Basic PAYE Tools You will need a computer and internet connection to use Basic PAYE Tools. You need one of the following computers: a PC using Microsoft Windows 8.1, Windows 7, or Windows XP (32 or 64 bit) an Apple Mac (with an Intel processor) running Mac OS versions 10.8 and 10.9 a Linux operating system compatible with Ubuntu and The minimum system requirements are: 1 GHz processor 1 GB RAM 500MB available hard disk space Updated: 2 nd April

5 Your computer will need to have the following software installed: A web browser - such as Internet Explorer 8 or higher, Mozilla Firefox 2.0 or higher, Google Chrome, Apple Safari 3.0 or higher, or Opera 9 or higher. Adobe Reader 9 or Reader 10 (Reader X). To check which version you have, find Adobe on your computer. The version number is in the name. For example, 'Adobe Reader 9'. The Adobe products listed above can be downloaded free from the Adobe website. If you don't have Adobe Reader you should go to the Adobe website (opens new window). If you're using an Apple Mac, check that it has an Intel processor If you have a Mac computer and are not sure whether it has an Intel processor, select the Apple logo on the top left hand corner of your desktop and then select 'About this Mac'. Basic PAYE Tools for real time reporting won't work with Macs fitted with PowerPC processors. If your Mac is fitted with PowerPC processors, you will need another payroll software package to report real time information to HMRC. Software packages and other payroll options Internet connection You must report your payroll information to HMRC electronically each time you pay your employees. To do this, your computer must have an internet connection so that Basic PAYE Tools can send your reports to HMRC. You won't need to be connected all the time, and the data which is sent to HMRC is small in size so it won't be a problem if you don't have broadband. But you will need to go online on a regular basis - every time you pay your employees. Step 3: Select the software that matches the operating system on your computer There are three different links that allow you to download Basic PAYE Tools onto your computer. The link you choose must match the operating system on your computer. Most customers who use the Basic PAYE Tools download Basic PAYE Tools for Windows. A few customers who use the Basic PAYE Tools download Basic PAYE Tools for Mac - this is for customers who know that their computer is an Apple Mac. A few customers who use the Basic PAYE Tools download Basic PAYE Tools for Linux - this is for customers who know that their computer is running Linux. Updated: 2 nd April

6 To make sure that you download the latest version of the software from the HMRC website please follow this link to go to the Download Basic PAYE Tools page. When you have read the 'Disclaimer' scroll down to Get the version of Basic PAYE Tools that's right for you and in the table click the link 'Download Basic PAYE Tools for Then click the link that matches the operating system on your computer and start downloading the Tools. If the computer on which your tools will be installed has internet access, but doesn't have broadband internet access you will need to telephone HMRC's Employer Orderline. Please ask them to send you a copy of 'Basic PAYE Tools for ' on a CD ROM - this may take up to seven working days to reach you. Contact HMRC's Employer Orderline Step 4: Download and install Basic PAYE Tools This is a step by step guide to downloading and installing Basic PAYE Tools for Windows and Apple Mac users. If you are using Linux, you can find instructions on how to install and open the Tools by clicking the link below: Download and read how to get Basic PAYE Tools running in Linux (PDF 16K) Please note: The following images are of the Windows operating system and will look slightly different to the images viewed by Apple Mac users. Your operating system and choice of antivirus software can also affect how the screens are displayed. Apple Mac users may also need to amend security and privacy settings to allow software to be downloaded. Updated: 2 nd April

7 Internet Explorer If your web browser is Internet Explorer, you will see a screen similar to this. Select 'Open'. Google Chrome If your web browser is Google Chrome your download will appear on the bottom of your page on the 'Show all downloads ' bar. Select and double click 'payetools-rti ' Mozilla Firefox If your web browser is Mozilla Firefox, you will see a screen similar to this. Select 'Open'. Updated: 2 nd April

8 All web browsers You will then see the following screen, or a similar looking screen. Select and double click on 'payetools-rti ' Next, you may see the following screen, or a similar looking screen. Select 'Run'. Or you may see this screen. This pop up will ask you to confirm that you want to allow Basic PAYE Tools to make changes to your computer. Select 'Yes'. Updated: 2 nd April

9 Regardless of your computer and operating system, you will reach the following screen. Click 'Next' to continue. You need to read the Licence agreement and decide whether you want to accept it. If you accept the licence agreement, you should select 'I accept the agreement', and then click 'Next' to continue. If you choose not to accept the Licence Agreement, you will not be able to install and use Basic PAYE Tools. Updated: 2 nd April

10 Select 'Standard installation' unless you are an advanced user or the system administrator and would like to do a 'Custom installation'. Then click 'Next' to continue. Click 'Next' to continue. User data will be saved in each user's home directory, for example: C:\Documents and Settings\User Name\Application Data\HMRC\payetools-rti Updated: 2 nd April

11 Leave the 'tick' in the 'Check for updates automatically' box. This means that if you are connected to the internet when you open the Basic PAYE Tools you can always have the most up to date version on your computer. Then click 'Next' to continue. If you followed Step 2 of this guide, you will have already checked that you had either Adobe Reader 9 or 10 on your computer. Therefore you can click 'Next' to continue. The next screen tells you about the need to take regular back ups of your data. Once you have read this click 'Next' to continue. Updated: 2 nd April

12 Click 'Next' to continue. Updated: 2 nd April

13 The Basic PAYE Tools will now be installed on your computer. This can take up to 10 minutes. When the installation is complete you'll see this screen. Click 'Finish'. Updated: 2 nd April

14 Once you've clicked 'Finish' the following icon will appear on your desktop. To get back to your desktop, minimise all the open pages on your computer, or use a shortcut key if you have one. Your download and installation is now complete. Please go to Step 5. Basic PAYE Tools installation problems If you have trouble installing Basic PAYE Tools, please try restarting your computer and run the installation again. Step 5: Open Basic PAYE Tools Some antivirus programs incorrectly puts software that you have downloaded from the internet in quarantine. If you are unsure of how to retrieve a download from quarantine please contact your antivirus software provider for support. If your computer is part of a network of computers, then you may be prevented from downloading any materials onto your computer. Please contact your business' IT service for support. There are two ways to open the Basic PAYE tools on your computer: 1. Double click the Basic PAYE Tools icon on your desktop. or 2. Search for 'Basic PAYE Tools' in your start menu. When you first open the Basic PAYE Tools you will see the following screen Updated: 2 nd April

15 It may take a few minutes before it opens up to the following screen. The Basic PAYE Tools allows you to keep your payroll records in an electronic format, work out PAYE tax, National Insurance contributions and other deductions. It also allows you to report your payroll information to HMRC online, when you pay your employees. Before you can start using the Basic PAYE Tools, you need to add the following: details about the employer details about all your employees Select the 'Add an employer' link from the menu on the left. Updated: 2 nd April

16 Step 6: Add details about the employer Once you ve clicked on the 'Add an employer' link, the next step is to enter details about the employer. To do this, you will need the following information: Your Employer name Your Employer address Your Employer Contracting-out Number (ECON). You will have one if you provide a contracted-out pension scheme and it will be made up as an E followed by six numbers and a final letter Your PAYE reference. You will find this on the letter received from HMRC in the format of three numbers / several alpha numeric characters Your Accounts Office reference. You will find this 13 character reference on the P30B letter 'Paying electronically' or on the front of your P30B payslip booklet from HMRC. Enter the required information in the blank boxes. Boxes with a red asterisk * next to them are mandatory and must be filled in before you are allowed to continue to the next page. If you are unsure what to enter in a box, click on the green '?' symbols to look at the help text which has more information. Updated: 2 nd April

17 When you reach the question 'Select the tax year of your first real time information submission using Basic PAYE Tools for real time reporting' You need to choose from , ' ', ' ' or You should choose When you reach the question 'Claim the NICs Employment Allowance for and ? ' You should read the help text by selecting the help icon? to the right of the question. Please note: If you answer Yes or No to this question an Employers Payment Summary (EPS) will be generated and will appear as an outstanding submission. This must be submitted to HMRC, but you can do that when you send the first payroll information. If you are not sure whether you are eligible, you can leave this question un-answered and enter Yes or No at a later stage. These questions are shown below. Once all the relevant blank boxes are filled, click 'Next' to continue. When you have successfully finished setting up the 'employer' details, you will be taken to the following confirmation page. When you have read the information on this page, click 'Next'. Updated: 2 nd April

18 You will then be taken to the following screen. You can view or edit your employer details from this page by selecting 'Change employer details'. Step 7: Add details about your employees To set up the 'employees' section, you will need the following information for each of your employees: title first name middle name (if known) last name address (including postcode) gender date of birth National Insurance number (if known) passport number (if known) payroll ID - see 'Additional Notes 1' below normal weekly hours worked - see 'Additional Notes 2' below pay frequency (how often you pay them) irregular employment indicator - see 'Additional Notes 3' below Updated: 2 nd April

19 whether they are a director of the company (only select 'yes' if the business is a Limited company and the employee has been appointed as a company director) their start date - see 'Additional Notes 4' below the starter declaration they made if they started working for you during the current tax year previous pay and tax details from their previous employment if they started working for you during the current tax year and have given you form P45 tax code (for existing employees) - see 'Additional Notes 5' below National Insurance category letter (for existing employees this will be on your payroll records. Please note that this is not the letter at the end of your employee's National Insurance number) Scheme contracted-out number see Additional Notes 6 whether student loan deductions need to be made Additional Notes: 1. The payroll ID is optional and may be used by you to identify a particular employee. If you do set up a payroll ID, HMRC will use it on any correspondence with you about that employee. If you reemploy someone in the same tax year do not use the same payroll ID that you used for them previously. 2. Enter the normal weekly hours worked by each employee. If the employee has no normal average, select Other. 3. The irregular employment indicator must be used for an employee if they are not paid on a regular basis, for example: casual or seasonal employees whose employment contract continues employees on maternity leave, long term sick leave or leave of absence any employee who for any reason will not be paid for a period of three months or more - but you still regard them as employees directors who are paid quarterly / annually / infrequently 4. Enter the date the employee started in this employment. If that date is in the current tax year, an accurate date is needed. If the date is in an earlier year, please be as accurate as possible. 5. You will need to enter a tax code for the tax year. If your employee has not been sent a tax code, then you should refer to the P9X on the HMRC website. You can open that by selecting the following link. P9X(2015) - Tax codes to use from 6 April 2015 Updated: 2 nd April

20 6. It is your responsibility to ensure the correct SCON is recorded. This can be found on your contracting-out certificate or by contacting your Pension Scheme Administrator. Please note from April 2015 the temporary SCON number is being withdrawn and will not be available to use. Once you have all the above details to hand: select 'Home' from the top of the screen select the employer from the Employer list select the 'Manage employees' link from the menu on the left Updated: 2 nd April

21 select the 'Add an employee' link from the menu You should start by entering details for any employees who have left since the start of this tax year, then add your existing employees. The screen below requires you to make choice about the 'type' of employee: Almost all employees will be ' Current'. These are the people you employ today and anyone who has left since 6 April It also includes people that you pay an occupational pension to. A very small number of pension providers will need to select 'trivial commutation'. A very small number of employers will need to select 'Nonindividual'. If you only use Basic PAYE Tools for an Earlier Year Update (EYU) for an employee for 14/15 tax year or later, select Earlier Year Update Only. Enter the required employee information into the blank boxes. Updated: 2 nd April

22 Scroll down the page completing the boxes as you go. When you reach the question 'Basis for setting up employee' you again need to make a choice from the drop down list, click on the? symbol for further information. Please note you should only select New Starter Receiving Occupational pension for an employee who has just started to receive an occupational pension. This may be a former employee, an existing employee who is in partial retirement or dependent of a deceased employee. Continue to complete the employee details requested Please note: You will be asked to enter a National Insurance category letter. If the letter entered is D, E, L, I & K you are required to enter a SCON number in the next box. The 9 character reference is provided to you by HMRC contracted out Employments group, and it will be made up as follows: letter S followed by seven numbers and a final letter. Updated: 2 nd April

23 Once all the relevant blank boxes are filled, click 'Next' to continue. When you have finished entering the employees details a summary screen will appear. To view the details select from the headings in the middle of the screen. To edit the details select the 'Change employee details link from the bottom right of the screen. To add another employee: select the employer name link from 'Navigation' on the left of the screen select 'Manage employees' and repeat the process until all of the employees have been added. Updated: 2 nd April

24 Step 8: Start using Basic PAYE Tools You have now done the following: registered as an employer with HMRC enrolled to use HMRC's online services downloaded and installed Basic PAYE Tools onto your computer added your employer and employee details You are now ready to use Basic PAYE Tools to operate PAYE on your employees pay. You must add employees pay details each time that you pay them; then you need to send that payroll information to HMRC on or before the day you pay staff. For help with this you can read (and you may want to print) All users: Using Basic PAYE Tools All users: Using Basic PAYE Tools You will not need to refer to this First time users Guide again as this process is now complete. Updated: 2 nd April