Redundancy and Termination payments This guide shows how to enter redundancy / termination payments (i.e. payments made when an employee’s employment is terminated) into Payroll Manager. It does NOT cover ‘Payments in Lieu of Notice (PILONs)’, which are treated the same as any other pay (i.e they are subject to tax and NIC). HMRC rules…
Shared Parental Pay (ShPP) Overview Employees may be able to get Shared Parental Leave (SPL) and Statutory Shared Parental Pay (ShPP) if they’ve had a baby or adopted a child. Employees can start SPL if they’re eligible and they or their partner end their maternity or adoption leave or pay early. The remaining leave will be…
State Pension Age The State Pension age is the earliest age that an individual can start receiving their State Pension, and is worked out based on the date of birth. If an employee chooses to continue to work after reaching their State Pension Age then their subsequent earnings are not liable to employee National Insurance…
Payroll corrections for tax years 2019-20 and earlier It is not possible to send amended FPS returns for tax years 2019-20 or earlier and instead you must file an ‘Earlier Year Update (EYU)‘ using HMRC own ‘Basic PAYE Tools’ software instead. Details of how to submit an EYU can be found on HMRC website (below)…
VAT: Domestic reverse charge for building and construction services Overview The domestic reverse charge (referred to as the reverse charge) is a major change to the way VAT is collected in the building and construction industry. It comes into effect on 1 March 2021 and means the customer receiving the service will have to pay…
Accounts Office Reference The employer’s ‘Accounts Office Reference‘ is a unique, 13 character code. It can be found on letters from HMRC about PAYE and when you registered as an employer. Accounts office references all have the same strict format, as follows: The three digit number of your tax office (e.g. 123) Two alpha characters…
MTD for VAT – problems and errors Since Making Tax Digital (MTD) for VAT was introduced in April 2019 many Money Manager 7 users have been successfully filing their VAT returns using the new system. We have a separate Making Tax Digital for VAT guide which shows you how to set up Money Manager and…
Copying a Money Manager data file from one computer to another 1. Making a backup copy of the data file from the first computer First ensure that you have the correct file open on the screen, then from the main menu in Money Manager, click ‘File‘ then ‘Utilities‘ then ‘Backup / Restore‘ and select the…
How Tax Relief and the Earnings Contribution basis affect pension contributions If you wish to check that an employee is having the correct pension deduction made from their pay, it is important that you understand how tax relief and the earnings contribution basis affects these deductions. Tax relief: When using a Relief at Source (RAS) pension scheme…
Taking on a payroll at the start of a new tax year This guide gives details of what you should do when taking over a payroll at the start of a tax year i.e. where the payroll has previously been processed by someone else /other software/another accountant etc in previous years, and you are processing…
