We would like to remind you of your year-end reporting and filing deadlines for the tax year ending 5 April 2017:
When to send an Employer Payment Summary ("EPS")
- You should send your final report in an EPS instead of an FPS if any of the following apply:
- You forgot to put ‘Yes’ in the ‘Final submission for year’ in your last FPS.
- You did not pay anyone in the final pay period of the tax year.
- You need to make a correction this should be done on an FPS using late reporting reason H for each payment being corrected.
When to send an Earlier Year Update:
- If you need to make a correction after 19 April then you should use an Earlier Year Update.
- You should report the difference between the last report and the final figures for the tax year. Don’t report the year to date figures.
The employees annual statement of pay, tax and National Insurance Contributions (NICs) deductions is called form P60. You should give this to your employees by 31 May 2017.
The Apprenticeship Levy
As mentioned in our Autumn 2016 newsletter, from April 2017 the way the government funds apprenticeships in England has changed. Some employers will be required to contribute to a new apprenticeship levy, and there will be changes to the funding for apprenticeship training for all employers.
How will this affect me?
The apprenticeship levy applies to all employers in England, in any sector, with a salary bill of more than £3m each year. For the purposes of the levy, an ‘employer’ is someone who is a secondary contributor with liability to pay Class 1 secondary NICs for their employees. The scheme applies to all companies. Small companies with qualifying apprentices can claim 90% of their training costs from the government.
How much do I pay?
The levy will be charged at a rate of 0.5% of your annual salary bill. You will have a levy allowance of £15,000 per year to offset against the levy you must pay. This means you will only pay the levy if your pay bill exceeds £3m in a given year. For group companies and connected companies, there are connected party rules which apply to the allowance.
How do I pay it?
Employers will pay the levy to HMRC through the PAYE payroll process. If you have calculated that you will pay the apprenticeship levy, you will need to declare this and include it in your usual PAYE payment to HMRC by the 19 (or 22 if you report electronically) of the following month. The first submission in which you will declare that you will pay the levy will therefore be in May 2017.
For more information please contact Mark Abbs.