Basic PAYE Tools Using Basic PAYE Tools for the Employer Payment Summary (EPS) only

Transcription

1 Using the Basic PAYE Tools E PS only Basic PAYE Tools Using Basic PAYE Tools for the Employer Payment Summary (EPS) only You can use this guide from 6 th April 2016 Updated: 6 April

2 Contents Introduction 3 Getting Started 4 Which sections of this guide do I need to read? 4 Step 1: Select the correct employer 5 Step 2: Claim a reduction in the amount you need to pay HMRC At the end of the tax month Calculate Recoverable Amounts for the tax month Enter Recoverable Amounts What happens if I submit an EPS after the 19th of the month? Amending the Recoverable Amounts 9 Step 3: Tell HMRC that you did not pay any staff wages in a whole tax month 10 Step 4: Final Submission for the tax year 12 Step 5: Claim the Employment Allowance 14 Step 6: Send the information to HMRC 15 Annual Reporting and Tasks 16 Updated: 6 April

3 Introduction Important This is the Basic PAYE Tools guide for making and sending an Employer Payment Summary (EPS) and can be used by those employers whose commercial payroll software does not include this facility. Even the very largest employers will be able to use the Basic PAYE Tools to submit an EPS should they need to do so. 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 the Basic PAYE Tools may look slightly different to those shown within this guide. This guide assumes you are using commercial payroll software to run your payroll and report information in real time. The EPS can be used when you want to: claim a reduction in the amount you need to pay HMRC claim the NICs Employment Allowance reduce the amounts shown on a previous EPS declare no payments made to employees in a tax month indicate that this is your 'Final submission for the tax year' Further information on these circumstances can be found at Payroll summaries you need to report to HMRC Please note: - You would normally recover statutory payments by withholding your Tax, National Insurance Contributions and Construction Industry scheme deductions from subcontractors, however if you don t have enough deductions to pay or recover the statutory payment, you may be eligible to apply for advanced funding. Financial help to recover Statutory payments Updated: 6 April

4 Getting Started In order to use the Basic PAYE Tools to send an EPS you must have: 1. downloaded and installed the software: If you don't have the software already, you can get the software here from the guide Download Basic PAYE Tools. If you already have Basic PAYE Tools, you need to be using the latest version. Check that your computer is connected to the internet then open the Basic PAYE Tools. Select 'Settings' then 'Update' then 'Check now'. If an update is available, accept the prompt to take the update. 2. set up the employer To help you do this, please refer to the user guide 'First time users: download and install Basic PAYE Tools'. This will show you how to set up and install the software, set up the employer database and set up the employees. You can find this guide on the GOV.UK. First time users: download and install Basic PAYE Tools (PDF 1.7MB) Ensure you follow Steps 1-6 only as you do not need to set up any employees for the submission of an EPS. Which sections of this guide do I need to read? If you want to: claim a reduction in the amount you need to pay HMRC, you need to follow Steps 1, 2 and 6 notify HMRC of whole tax months with no payments to employees, you need to follow Steps 1, 3 and 6 indicate that this is your 'Final submission for the tax year', you need to follow Steps 1, 4 and 6 claim the new Employment Allowance - if you: o already use Basic PAYE Tools, you need to follow Steps 1, 5 and 6 o have not previously used Basic PAYE Tools, you should follow the Getting Started section on page 4, then follow Step 6 of this guide Updated: 6 April

5 Step 1: Select the correct employer and Tax year From the 'Home' screen select the correct employer from the Employer list. This will take you to the 'Employer details' screen as shown below. Ensure you select the correct tax year from the top of this page. Note that this needs to show the tax year for which you are carrying out tasks, such as sending an EPS. Updated: 6 April

6 Step 2: Claim a reduction in the amount you need to pay HMRC 2.1 At the end of the tax month A tax month covers the period from the 6th of one month to the 5th of the next month. After you have paid the last staff wages each tax month, but before the 19th of the next month you need to follow the next steps. 2.2 Calculate Recoverable Amounts for the tax month What are Recoverable Amounts? You may be able to reduce the amount payable to HMRC in respect of: Statutory Maternity Pay (SMP) recovered, and there may be compensation due Statutory Adoption Pay (SAP) recovered, and there may be compensation due Ordinary Statutory Paternity Pay (OSPP) recovered, and there may be compensation due Additional Statutory Paternity Pay (ASPP) recovered, and there may be compensation due Shared Parental Pay (ShPP) recovered, and there may be compensation due Construction Industry Scheme (CIS) deductions taken from your payments as a subcontractor if your business is a limited company How much is recoverable? If you paid any SMP, SAP, OSPP, ASPP and/or ShPP to staff during the tax month, you can use the appropriate calculator(s) to work out how much of that statutory payment you can recover, and the amount of any compensation. Make a note of the amount(s). All the calculators in Basic PAYE Tools are accessed using the 'Calculators' link at the top of the screen. Updated: 6 April

7 2.3 Enter Recoverable Amounts From the 'Employer overview' screen select the 'Employer Payment Summary and recoverable amounts' link from the menu. Select the 'Add a recoverable amount' link from the Menu. Enter the 'Recovery date'. We recommend that you simply enter the last day in the Tax Month when wages were paid, and the total for each recoverable amount that relates to that tax month. The date entered here must be after any recovery date already entered. Updated: 6 April

8 Complete the boxes as appropriate and select 'Next'. This takes you back to the 'Employer Payment Summary and recoverable amounts' screen which has now been updated to reflect the recoverable amounts that you have just entered. Note also that 'Outstanding submissions' now shows (1) as entering the recoverable amounts has created an EPS. This will be submitted in Step 6. An EPS has been created and it is important that you send it without delay. Until you send the EPS you will not have claimed relief for the recoverable amounts, so HMRC will expect you to pay the full amount of the deductions (tax, National Insurance contributions Updated: 6 April

9 (NICs) and student loan deductions) shown on the Full Payment Submission (FPS). This EPS must be submitted to HMRC by the 19th of the month after the end of the tax month. Now go to Step 6 and send the information to HMRC. 2.4 What happens if I submit an EPS after the 19th of the month? The EPS will not be taken into account for that period and you will have to pay the full amount due from your FPS. When the EPS is received it will be taken into account against the next period. 2.5 Amending the Recoverable Amounts If you make a mistake, for example in Month 1 you enter the wrong recoverable amount, you can 'Change' the amount. From the Home page: Select the employer from the 'Employer' list. Select the 'Employer Payment Summary and recoverable amounts' link from the Menu. From the table in the centre of the screen, select 'Change' for the tax month where you made a mistake. Do not select Delete. Amend the amounts by entering the correct amount for that tax month, and select 'Next'. This takes you back to the 'Employer Payment Summary and recoverable amounts' screen which has now been updated to reflect the recoverable amounts that you have just entered. Now go to Step 6 and send the revised information to HMRC. Updated: 6 April

10 Step 3: Tell HMRC that you did not pay any staff wages in a whole tax month You are required to send an FPS every time you pay your employees. If you don't pay any employees during a whole tax month (from the 6th of a calendar month to the 5th of the following month), HMRC won't know that and so will still be expecting you to submit an FPS. If HMRC does not receive an FPS covering any part of a whole tax month you may be sent a demand for a 'Specified Amount' as HMRC can specify the amount it estimates you owe based on previous payments/returns. To avoid this, you need to 'Add a period with no payments to employees' then send an EPS. This replaces the 'nil payslip'. Top Tip You can report: 'no payments to employees' for a tax month that has already ended 'no payments to employees' for the current tax month 'no payments to employees' for one or more future whole tax months, up to a maximum of six months, but the start date must be the first day of the next tax month. For example, on 15 November you: can submit a 'Nil Payment' EPS for the period 6 December to 5 January cannot submit a 'Nil Payment' EPS for the period 6 January to 5 February Updated: 6 April

11 From the 'Employer overview' screen select the 'Periods with no payments to employees' link from the Menu. Select the 'Add a period with no payments to employees' link from the Menu. Enter the 'Start date' and 'End date'. Move through the screens by clicking on 'Next'. The EPS must be submitted to HMRC by the 19th of the month after the end of the tax month. Now go to Step 6 and send the information to HMRC. Updated: 6 April

12 Step 4: Final Submission for the tax year Once you have paid the final wages for the tax year (and not before), you should send the Final Submission for the tax year declaration From the 'Employer details' screen: ensure you have selected the correct tax year from the top of the screen - if you want to send the Final Submission for then you need to select tax year first select the 'Final submission for tax year' link from the Menu Select the 'Complete final submission for tax year details' link from the Menu. Tick Is this your final submission? and press Next. This action will create an outstanding submission. Now go to Step 6 and send the information to HMRC. Updated: 6 April

13 Step 5: Claim the Employment Allowance From 6 April 2015 you can save up to 2,000 per year against your employer Class 1 NICs liability. Note: From April 2016, the maximum value of the allowance will rise to 3,000 a year. For employers already using Basic PAYE Tools: make sure you have selected the current tax year from the top of the screen follow the 'Change employer details' link from the right of the screen scroll down to the bottom of the screen where you will see the NICs Employment Allowance field if you are eligible and you want to claim the NICs Employment Allowance select 'Yes' Note: From 6 April 2016, if you re the only employee in a company, and also the director, your company will not be eligible for the NICs Employment Allowance. Now go to Step 6 and send the information to HMRC. Updated: 6 April

14 Step 6: Send the information to HMRC From the Home page: select the employer from the 'Employer' list select the 'Outstanding submissions' link from the Menu - you will see there is data to be submitted select the 'Send all outstanding submissions' link from the Menu On the following screen, select 'Next'. You will then be at the 'Submission authentication' screen where you will need to enter your User ID and Password and then select 'Next'. You may know these as the Government Gateway User ID and Password. Updated: 6 April

15 The next screen indicates that the message is in the process of being sent to the Government Gateway. You should then receive the following submission success message. Updated: 6 April

16 Annual Reporting and Tasks When to send an Employer Payment Summary (EPS) You should send your final report in an EPS instead of an FPS if any of the following apply: you forgot to put Yes in the Final submission for year field in your last FPS however BPT will allow you to make an additional FPS submission if it is before 19 th April. you didn t pay anyone in the final pay period of the tax year you sent your final FPS early and you didn t pay anyone for 1 or more full tax months in the last tax year That completes this guide. Updated: 6 April