Taxes

The first step is to register for the online services.  This is done by creating a Government Gateway account and then registering to handle the relevant taxes online at www.hmrc.gov.uk/ct/manageonline

 

Payroll

I received the employer registration reference 4 days after registering.

HMRC have a free basic payroll program.  This has been amended in April 2013 and the new version, which handles RTI submissions, is available at http://www.hmrc.gov.uk/payerti/payroll/bpt/using-bpt.htm  The notes below largely relate to the previous version.

I set the company up as the employer and checked the P11D.

You need to have your online PIN before starting the payroll process.  Something that I discovered too late and had to delete my payroll and re-enter the information once the PIN had been received.

In summary, to save you the errors I made.  As soon as you have the employer registration reference you can set up the employer.  You can also check the P45 figures using the P45 Checker in the Calculators.

The PIN came through 9 days after registering. I set myself up as the employee, entered the P45 details and submitted these electronically.  I then entered the pay details in the P11 calculator, separately created a payslip in excel , generated P32 records for each month of the tax year to date (all of which were nil) and made submission.  The accounting entries were recorded in the General Ledger.

The following month, the company paid me again.  This time PAYE income tax was deducted.  It was very unclear whether this had to be reported to HMRC in some way or whether the Basic PAYE Tools program does this automatically.  I later discovered, while reading an article in the FT about “Real Time Information” that currently the payroll information is reported once a year following the end of the tax year, but that this will change from 6 April 2013 and reporting will need to be made whenever the payroll is run.  Hopefully the Basic PAYE Tools will handle this automatically by then.

The tax has to be paid by the 22 of the month following payment and I have set this up as an electronic payment from the company’s bank account to go out on the required day quoting my Accounts Office reference on the front of the book of payslips that HMRC have provided.  All of these transactions were recorded in the general ledger with the appropriate dates and I checked to ensure that there would be sufficient cash in the company’s bank account.

Corporation Tax

I have also registered to submit my corporate tax returns online.