5. Year End Procedures

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Ensure that the correct employer details are held in 'Amend Employer Details'.

The Employer's PAYE reference must be completed in full with your HMRC office number and your reference number in the format 999/XXXXXXXXX where 999 is the office number and XXXXXXXXX is your employer PAYE reference number.

The Accounts office reference must also be completed.

All of the above information can be found on your P30BC 'Payment booklet' or the P30B 'Paying electronically'. Your accounts office reference will be in the format 123PA00012345 (this reference is only an example and should not be used).

The axis diplomat Payroll Legislation Update for year end 2012/2013 adds additional fields to each employee record that are required for reporting PAYE in real time (RTI). Each employee record needs to be updated using 'Amend Employee Details' to ensure that the correct information is held in the following fields:

Main Details tab

• Surname
• Forenames (including middle names). Do not use familiar names or nicknames (for example Dave instead of David, or Betty instead of Elizabeth).
• Title
• Gender
• Date Of Birth
• N.I. number

Payment Details tab

• Irregular payment pattern (*). Tick this box if an employee is expected to receive no payments for several periods. This is required for inclusion in RTI reporting to HMRC to ensure they do not assume the employee has left.
• Normal weekly hours (*). Select the appropriate normal weekly hours band.

Address Details tab

• Ensure the correct address details are held including postcode if it is a UK address. If the address is outside of the UK, Channel Islands or Isle Of Man, ensure the last line of the address contains the full country name and tick the 'Foreign country address' field (*). 

* - new field for RTI

Note: It is not mandatory to complete the new fields for RTI prior to carrying out your year end and these may be completed afterwards. Should you not complete these fields prior to creating your RTI Employer Alignment File (if applicable) or running Calculate Gross Pay in the new year, the system will issue you with a warning and not allow you to proceed.

The system will produce a 132 column plain paper report detailing the total amounts accumulated for each pay/deduction component, total PAYE and total NIC. Please read the associated help documentation for further details.

The system will produce a 132 column plain paper report (based on the NIC section of a P11) detailing N.I. Liable Earnings and N.I. Contributions for each employee on a period by period basis for the frequency selected.

We would advise that the report is kept for a minimum of 3 years, in case of query from HM Revenue & Customs.

Please read the associated help documentation for further details.

The system will produce a 132 column plain paper report (based on the PAYE section of a P11) detailing Taxable Earnings and Tax Paid for each employee on a period by period basis for the frequency selected.

We would advise that the report is kept for a minimum of 3 years, in case of query from HM Revenue & Customs.

Please read the associated help documentation for further details.

The system will produce a 132 column plain paper report with one page per employee showing each day of sickness absence, maternity leave, etc, taken during the year. Both April 2012 and April 2013 are printed for information.

Please read the associated help documentation for further details.

The system will produce an 80 column employee listing of NIC and tax deductions followed by a summary of payments for the year as required for completion of your ‘P35 - Employer’s Annual Return’.

You will be required to enter/confirm your Employer’s PAYE Reference and HM Revenue & Customs office.

We would advise that a copy of the report is kept on file for a minimum of 3 years in case of query from HM Revenue & Customs.

Please read the associated help documentation for further details.

A P60 must be printed and given to each employee still employed on 5th April.

NB. P14 documents are no longer applicable since end of year returns must be filed online.

Please refer to the Introduction of this supplement for further information on how to order stationery and which formats are available.

The documents are printed in surname order.

Please read the associated help documentation for further details.

This function will file the required End of Year Return details ready for subsequent submission to HM Revenue & Customs via the Internet.

You will be asked to select the required return submission type:

A 'Complete' return will include employee P14 details and the associated P35. Hence, this is only appropriate if all your employees are included on the current payroll company and single pay frequency and you are ready to submit your P35 Declaration.

If you operate more than one payroll company or pay frequency for the same PAYE reference you will need to create a 'P14 Part' return submission file for each, i.e. a 'P14 Part' return will only include the employee P14 details for the selected pay frequency.

A single 'P35 Part' return should be created when you have created and successfully filed all the required 'P14 Part' returns and will include the Employer's Annual Return, Declaration and Summary of Payments for all employees, i.e. this option should only be used once using a single selected pay frequency.

When you create a 'Complete' or 'P35 Part' return submission file, an additional screen will appear requesting the details required to complete your 'P35 - Employer's Annual Return'. If you operate more than one pay frequency or payroll for the same PAYE reference you will need to enter the appropriate combined totals from all your ‘P35 Print’ reports.

NB. The P35 includes a box for ‘Tax-free Incentive payment received’. This should only be completed if your PAYE payment record was credited this year with the payment for filing a previous year end return online. It should not be completed if the Incentive was repaid directly to you by cheque.

This function handles the actual sending of your end of year return submission file(s) to HM Revenue & Customs and the responses via the Internet.

It may be used anytime up until the filing deadline of 19th May 2013, i.e. this function does not have to be performed before the Year End Processing.

You are advised to avoid the peak online filing times (10:30am to 1:30pm and 2:30pm to 4:00pm Monday to Friday).

If you can use the quieter times - or even at the weekend if it is convenient - you are likely to have a faster filing experience.

You are advised to avoid sending files between 4th April and 6th April without first checking the Service Availability for PAYE.

If the service is busy you may need to ‘Connect’ again in order to receive confirmation that your return has been accepted.

Employer Annual Returns send in parts

HMRC will only send an acceptance or rejection message for a P35 part once it has been married up with all the P14 parts and the Return consolidated. P35 parts received before 6 April will be unaffected by this change. There will be no change to how P14 parts are validated and how acceptance or rejection messages are sent for them.

Remember, your whole Return must be sent by 19 May to avoid a late filing penalty.

HMRC have said that there will be no delay in messages going back to employers once they commence full processing. You also need to be aware of the following occasions when the P35 acceptance or rejection messages following consolidation will not go back immediately:

6 April to full processing – every year HMRC store online Returns and manage the build-up to full processing. This period has traditionally been 10 days to two weeks. The P35 submission status will show at 'At Government Gateway awaiting response'. Once you have received your email confirming that your P35 has been accepted go back into GovTalk File By Internet and connect, you will then receive the status update.

If the P35 part is not the last part received – HMRC will not send a response to the P35 until the outstanding P14 part is received and they have validated the complete Return. For example, where an employer sends the P35 part before their agent has sent the P14 part. HMRC recommend that you always send your P35 part last

HMRC ask that you do not try to re-send your P35 part in these circumstances if you do not get an acceptance or rejection message.

What happens if HMRC reject your Return?

HMRC will reject your P35 if any of the figures do not add up to the corresponding information on the P14 parts. For example, if the total tax paid figure on the P14 part(s) does not add up the total tax paid figure on the P35. They will hold the P14 parts but will treat the P35 as if it has not been received.

Remember, even though HMRC reject the P35, the cause of the error may be in one of your P14 parts. If your P35 is rejected, you must review all the information sent and, if necessary, replace an incorrect P14 part before resubmitting the P35.

Common errors

HMRC have provided details of the most common errors on part Returns.

Duplicate Unique Identifier

Each P14 part must be sent with a Unique Identifier. If you use the same Identifier on two different P14 part submissions before the return is fully consolidated, the second submission received will overwrite the first and HMRC will only have a record of one part received. An acceptance or rejection message will not be sent in response to the P35 in this instance because they will still be expecting a further P14 part.

Incorrect number of parts sent

The P35 must show the number of P14 parts being submitted. This figure must not include either the P35 or the P38A. HMRC will not send a response message for the P35 where the number of parts received does not agree with the number on the P35.

Note: this is the number of 'P14 Part' submission files as opposed to the number of P14s being submitted.

Please read the associated help documentation for further details.

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