Annual payroll compliance

Produced by Tolley in association with

Employment Tax

Guidance

Annual payroll compliance is the natural conclusion of the payroll compliance cycle (see the Monthly payroll compliance guidance note), bringing the tax year to its formal close. This is only done when all payments have been made in the tax year and is relatively simple under real time information (RTI). This is because full payment submissions (FPS) will have been completed every time the payroll is run, and employer payment summary (EPS) submissions will have been submitted monthly. See the Real time information guidance note.

RTI compliance

FPS and EPS

The FPS submits cumulative values each time the payroll is processed, for example, information regarding pay, tax, NIC and student loans. The EPS is submitted monthly and, amongst other functions, submits details of amounts that can be reclaimed, for example, CIS deductions suffered and statutory payments (SMP, SAP etc.).

Therefore, to close one tax year in RTI requires the submission of an indicator to HMRC which confirms that this is the final submission of the tax year. This can be done in one of two ways using the

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Ian Holloway

Payroll and Reward Consultant , Employment Tax, Personal Tax

Ian has been in the payroll profession for over 30 years, processing payrolls from all sectors, large and small. He moved from hands-on exposure in 2011 to become involved in educating the profession. His wide-ranging experience and up-to-date knowledge ensures he can impart this information to UK professionals through course material, social media, newsletters and face-to-face presentations.However, educating the profession cannot be achieved without knowing how the profession works on a day-to-day basis and involvement with hands-on administration is essential. So, today, Ian operates as a consultant and advisor and is involved with a vital aspect of the payroll and reward environment, that of working with the software that does a lot of the hard work for the profession.The return to being involved in a hands-on environment has not stopped his desire to inform, educate and train the UK payroll profession. Indeed, this is now better-achieved, as he can draw on real processing situations.Ian approaches education and communication very much from the perspective of how this will impact the software, the employer and the worker. So, whilst the legislation is vital, compliance and effective communication are paramount.Ian is Companion of the Institute for Certified Bookkeepers (ICB), committee member of the British Computer Society (BCS), a committee members of the ICAEW’s Tax Faculty and a Fellow member of the Chartered Institute of Payroll Professionals (CIPP).

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