Student Loan and Postgraduate Loan Deductions Student and Postgraduate loan repayments are often collected through payroll. A deduction is made from the employee’s pay and paid to HMRC as part of the employer’s PAYE payments. The amount of the deduction is determined by the employee’s level of earnings and the ‘Plan Type’ of the student…
Directors NIC There are two main methods for calculating National Insurance Contributions for a director : the ‘Standard Annual Earnings Period‘ method, and the ‘Alternative arrangements‘ method. Both methods result in a director paying exactly the same amount of National Insurance over the course of a tax year, although one method may be more suitable…
Paying an employee after they have left Use this step-by-step guide if an employee needs to be paid after their leaving date Enter in the amount. Click ‘Pay – Pay Details’ from the main menu and select the relevant employee. After an employee has left, the remaining pay periods of the tax year will be…
Loan Benefits – Data Input and Calculation This guide explains how to enter details of loans provided to employees and shows how the benefit of such loans are calculated. You should refer to the HMRC publication 480: Expenses and Benefits – a Tax Guide for a more detailed explanation. Note that Payroll Manager uses the…
Payrolling Benefits in Kind (PBIK) Since April 2016 employers have been able to to utilise a (voluntary) HMRC online service – ‘Payrolling Benefits in Kind (PBIK)’, which changes the way in which expenses and benefits are taxed and reported to HMRC. HMRC guide Payrolling Benefits in Kind gives detailed information about this new service. A…
Changing from one business to another (e.g. sole trader to ltd company, or company A to company B), or when one business takes over another. 1. I have Payroll Manager 20 and need to change my company (e.g. changing from sole trader to ltd company or similar) If your organisation is changing (e.g. from a…
Week 53 payments, tax calculations and P800 letters. Background Most employees (¹) are entitled to a certain amount of pay before paying tax. This is called the ‘Personal Allowance’. In 2023-24 the personal allowance was £12,570. When calculating PAYE tax, the Personal Allowance is divided by the usual number of pay periods in the year…
Common HMRC error messages If you are attempting to file an online submission to HMRC and are getting a failure message then please be aware that these messages are generated by HMRC and not by Moneysoft. We have published a list of common errors below which may help you resolve the problem. Please note that…
CIS suffered – reporting a new figure after the final EPS has been sent On some occasions you may need to adjust the amount of CIS suffered that you are reporting to HMRC after submitting your final EPS for the year. This guide shows how to make the necessary corrections and submit a ‘Year End…
