Monthly payroll compliance

Produced by Tolley in association with

Employment Tax

Guidance

Monthly payroll compliance is generally concerned with RTI compliance, although an employer may also need to comply with other legislation.

RTI compliance is concerned with paying over to HMRC the correct amounts of tax, NIC (employees’ and employer’s), deductions including student/postgraduate loans and making the correct statutory payments. This has taken on more importance under real time information (RTI), as HMRC will calculate what they think is due from the full payment submission (FPS) and employer payment summary (EPS) submissions for each tax month. See the Real time information guidance note.

Reconciliations

To assist with compliance, regular reconciliation would normally be made by the employer, eg at least on a monthly basis. The precise nature of the reconciliations may vary depending on the software and accounting systems used. As many of these checks may be in the nature of audit and internal control (rather than merely tax requirements), employers may wish to refer to internal audit guidelines. However, the following are the typical objectives of such

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

TAKE A FREE TRIAL

Vince Ashall

Payroll Consultant & Trainer at VA Payroll Services

Involved in payroll for more years than I care to remember! Initially in the NHS, where i oversaw the development of the NHS's bespoke payroll system (SPS Standard Payroll System), and latterly in the private sector. Served for 13 years as a MNT for a private sector defined benefit pension scheme. Have had articles published in payroll publications and and provide updates for various publishers. Fellow of the CIPP and gained a MSc in Payroll & Business Management in 2002. Now a self employed payroll and pensions consultant

Popular Articles

Employment Tax

Loans written off

Loans written offCompanies sometimes provide directors, employees or shareholders with low interest or interest-free loans either as part of the reward package or on special occasions to help the individual meet significant expenditure. The employment income implications of these loans are discussed

14 Jul 2020 12:11 | Produced by Tolley Read more

Employment Tax

Classes of NIC and who pays them

Classes of NIC and who pays themClass 1 NICClass 1 NIC is payable on earnings paid to an employed worker which derive from, or are treated as deriving from, an employed earner’s employment in the UK. There are two kinds of Class 1 NIC, primary contributions for which the employee is liable and

14 Jul 2020 11:13 | Produced by Tolley in association with Jim Yuill at The Yuill Consultancy Read more

Brexit

Value Added Tax

VAT registration ― change of VAT registration details

VAT registration ― change of VAT registration detailsVAT registered persons must keep their VAT registration details up to date and notify HMRC of any changes. Failure to notify HMRC by the relevant time could result in a penalty. For guidance regarding penalties for failure to notify please see the

14 Jul 2020 13:57 | Produced by Tolley Read more

UU��ֱ��