Employment Tax

Annual compliance

Produced by Tolley in association with Vince Ashall
  • 25 Oct 2021 14:11

The following Employment Tax guidance note Produced by Tolley in association with Vince Ashall provides comprehensive and up to date tax information covering:

  • Annual compliance
  • PAYE compliance
  • Expenses and benefits compliance
  • PAYE settlement agreement compliance
  • New tax year compliance

Annual compliance

Annual compliance is the natural conclusion of the monthly compliance cycle, bringing the tax year to its formal close. This is now considerably simplified under real time information (RTI) owing to the periodic full payment submissions (FPS) and employer payment summary (EPS) submissions.

PAYE compliance

This is the culmination of the payments analysis and monthly FPS reconciliation process. The sum of cumulative figures for tax, NIC and student loans less statutory payment recoveries is the amount to be paid over to HMRC after taking account of payments already made during the year.

This final payment for the year should be made by the deadline date of 19 April, or 22 April if paying electronically.

As the majority of employers are now subject to RTI, the year-end process for the day-to-day PAYE process (FPS and EPS) consists of indicating the last FPS of the tax year by marking it as the final submission for the year in field 109. HMRC announced in December 2014 that the year-end questions no longer have to be completed. For those employers who run supplementary payrolls at year-end, and who therefore may not know when their last FPS of the year will be run, field 109 can be completed on the final EPS of the year.

For employers with multiple pay frequencies, eg weekly and monthly, the final submission for the year indicator should be completed on whichever FPS is submitted last. For example, if the March monthly pay date is 25 March and the last weekly payday is after this date (but before 6 April), then field 109 should only be completed on the final weekly FPS.

Alternatively, and possibly more practical for those employers with multiple pay frequencies, the final submission for the year indicator can be completed on the final EPS.

Note that for RTI the deadline for submission of the year’s final FPS is 19 April, effectively bringing forward by a month the previously long-standing year-end deadline. An FPS submitted late at

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

Think Tax.
Think Tolley.

Critical, comprehensive and up-to-date tax information


Popular Articles

Income tax during administration

Liability of the personal representativesAfter a person’s death, the property of the deceased is vested in the personal representatives (PRs) to enable them to manage and distribute the estate in accordance with the Will or the terms of intestacy. See the Personal representatives guidance note.The

03 Nov 2021 11:52 | Produced by Tolley Read more Read more

Controlled foreign companies (CFCs)

IntroductionThe CFC rules as outlined in this note apply to accounting periods beginning on or after 1 January 2013, the date upon which significant changes made by Finance Act 2012 became effective.From this date, the CFC rules also apply to foreign branches in respect of which an exemption

22 Dec 2021 16:13 | Produced by Tolley Read more Read more

Payment of tax due under self assessment

Normal due dateIndividuals are required to pay any outstanding income tax, Class 2 and Class 4 national insurance and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK resident individuals who

Read more Read more