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As an employer in the UK, it's important to stay on top of payroll reporting, UK payroll dates and submission of information to HM Revenue & Customs (‘HMRC’). Failure to comply with these requirements can result in penalties and fines, so it's important to understand what needs to be done and when.
In this article, we'll take a closer look at the payroll reports, submissions and information that needs to be provided to HMRC, as well as monthly payroll submission deadlines for employee pay data. Save this article so you have all the information on important dates in the payroll calendar or view our payroll calendar graphic for more information.
What is HMRC Payroll Reporting?
Payroll reporting is the process of providing HMRC with information about employees' earnings, tax and National Insurance contributions (‘NICs’) and any other deductions made from their pay.
The information provided through payroll reporting helps HMRC calculate the correct amount of tax and National Insurance that your employees owe, as well as ensuring that you're paying the correct amount of employer NICs.
Real Time Information (‘RTI’) was implemented across employers in the UK from April 2013. The purpose of RTI was to streamline and improve Pay as You Earn (‘PAYE’) reporting, giving HMRC visibility of employees’ pay and benefits in real time, rather than waiting until year end.
This means that HMRC can calculate if there are overpayments or underpayments of deductions and correct them throughout the year instead of at year end. Payroll information is now submitted electronically through HMRC-recognised payroll software.
What payroll information needs to be submitted?
There are several pieces of information that need to be sent to HMRC or to your employees throughout the tax year to remain compliant with payroll legislation. These include:
- Full Payment Submission (‘FPS’): This is a report that must be submitted every time you pay your employees – whether you pay weekly, monthly, fortnightly or any other pay frequency. It provides details of employees' pay and how much tax and NICs has been deducted. This report must be submitted on the day or before an employer runs payroll.
At the end of the payroll year, an employer must indicate to HMRC that the FPS is the final one for year end. There’s a ‘Final submission for the year’ field in payroll software and this must be marked as confirmed.
- Employer Payment Submission (‘EPS’): This contains information that’s different to the FPS and can affect the payments that an employer makes to HMRC. When an employer has made payments such as for parental leave including statutory maternity, paternity, adoption, parental bereavement or shared parental payments. These payments are reported in the EPS and they can be offset against what the employer owes to HMRC for NICs. The employer can also use the EPS to reclaim the annual Employment Allowance and pay the Apprenticeship Levy if they have an annual pay bill of more than £3 million.
- P60 – This is the annual statement issued to taxpayers at the end of the tax year. Employees should retain this to show the summary of their earnings and tax payments for that tax year.
- P11D and P11D(b) - These submissions are used to report any benefits in kind or expenses paid to employees or directors. The P11D(b) is the summary of all Class 1A due on these benefits for all employees and should be followed up with a payment of the Class 1A to HMRC. The P11D form is the employees individual summary of each benefit and the taxable value for that tax year.
What are the key dates in the payroll year?
The deadlines for submission vary depending on the report. Here's a quick overview:
- Full Payment Submission (‘FPS’) – to be submitted on or before the day you pay your employees
- Employer Payment Submission (‘EPS’) – to be submitted on or before 19th of the month following payroll
- Employer Payment Summary – to be submitted on or before 19th April for the previous tax year
- 5th April – Deadline for new registration for payrolling benefits
- 6th April - Start of the new tax year. New tax codes/NICs bands and thresholds effective
- 19th April - Deadline for final RTI submission of the year
- 31st May – Deadline for issuing P60s to employees
- 1st June – Deadline for issuing payrolled benefits information to employees
- 6th July – Deadline for issuing form P11D to employees and submitting P11D & P11D(b) forms to HMRC
- 19th July – Class 1A payment due if paying by cheque
- 22nd July - Class 1A payment due if paying electronically
- 19th October - Class 1B payment due (PSAs) if paying by cheque
- 22nd October - Class 1B payment due (PSAs) if paying electronically
Failure to meet these deadlines can result in penalties and fines, so it's important to stay on top of your reporting requirements throughout the tax year.
As an employer in the UK, you have several payroll reports and submissions that need to be made in a tax year to HMRC as well as information provided to your employees. By understanding what needs to be done and when as well as reporting and payroll cut off dates you can ensure that you stay compliant and avoid any penalties or fines.
If you’d like to keep compliant with all payroll legislation and never miss a payroll deadline again, get in touch, we’d love to chat.
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