Tax year end: what you need to know
If you are an interim operating via a limited company, it is important that you know what to do to remain compliant with HMRC as we approach the tax year end.
Previously you needed to submit a P35/P14 to inform HMRC of all salary payments made in the year. However, with the introduction of RTI (Real Time Information) the system has changed and now, instead of a P35, you need to complete a final FPS or EPS. So exactly what is a FPS or EPS? A Full Payment Submission or Employer Payment Summary informs HMRC that you have made the final salary payments to all employees, including yourself, in this tax year (2013-14). Which form you need to complete will depend on your circumstances. And, as with all RTI, if any tax and NI is due on these last salary payments, HMRC will need to receive cleared funds by the 22nd April, to avoid any fines.
HMRC need to receive your FPS or EPS by the 19th April. Changes after this date will need to be advised by sending an EYU (Earlier Year Update). But beware – if these returns are not received by the 19th May you will be charged a late filing penalty of £100 for every month, or part month, that the return remains outstanding. So it’s important to get it right and get it in on time!
Wendy Church is the Client Liaison Manager for Competex Ltd, which has been providing accounting and payroll services for interim managers and consultants since 1998.