Are you ready for April 6th?
As with last year, our team has been working hard to put new legislation in place and updates to the workflow to make your year-end rollover process as simple as possible. Please see our article below which is our 2022/2023 YERO Checklist.
Tax Year Changes
There are a couple of key changes from April that My Digital have prepared for and please read the below article for further details:
Consider when you want the new NMW table to take effect
In My Digital, you have the ability to choose when you want to start using the new NMW rates. This is so if you run your payrolls in advance/arrears you're not restricted. We have an article available for how to update this in our system which can be found here:
Check when your payroll ends
Does your payroll end on week 52 or do you have a week 53 to take into consideration?
If you are running payrolls on the 5th April 2022, then this will be processed as week 53 payroll.
What to do after running your last payroll of 2021/22
Check for leavers
Have any of your employees left your business in the current tax year? If so, you should process them as leavers first. It’s important that you do this before processing the year-end rollover. This will ensure that the correct YTD figures are processed when generating their P45. If you need help with how to make people leavers in the system see our knowledgebase article.
What if I don't mark the worker as a leaver?
If you do not mark a worker as a leaver before you run the year-end process, then a P60 for the closed tax year will be produced. If you then mark the worker as a leaver after the year-end rollover process and do not run any further payroll a P45 with nil figures will be produced for 2022/23.
Process your year-end rollover
NOTE: this process can only be run by your Accounting Firm Admins.
You need to let the system know you are closing off payroll for the year 2021/22. This is so that you can:
Generate P60's for workers for 2021/22
Update tax codes to the new standard tax code ( This year as the tax-free allowance isn't changing, the tax codes will remain the same.)
Enable payrolls to be run with a pay date of 6th April 2022 onwards
To process year-end rollover, please follow below steps:
Click on the Settings cog in the top right-hand corner and select “Tax Year-End Rollover” as per the below screenshot.
You will be taken to a summary screen which will explain the changes being made to the system, primarily this will be updating the tax codes, tax and NI brackets etc. Once you are ready to apply these changes click on Apply button and the year-end rollover process is complete.
IMPORTANT: Once this step is complete, you will not be able to undo this step.
Get your P60's ready
Once the year-end rollover is complete, P60s will become available in the system. All your employees who have not left the company by the final day of the tax year (5 April), need to receive a P60 from you by 31st May. See the article below for how to send them out in bulk whenever you're ready 😎
Send your Final EPS of the year
You can submit your EPS before the year-end rollover is applied, however, we recommend only sending afterwards, as this means you can be sure no further changes will be made to the previous tax year payroll details.
If you want to do this before your YERO, make sure you have processed the final payroll of the tax year and have made any of your employees leavers before you send your final EPS. The deadline for this is 19 April.
To find out how to submit the EPS from our system, read our article Sending your Employment Payment Summary (EPS)
You can find details of HMRC full guidance on your responsibilities here 👇