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Guide to the main HMRC payroll forms for small businesses

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Form-filling and filing is an everyday part of running a small business, and unsurprisingly a large part of the time spent dealing with Company administration involves filling in (or signing) a whole raft of HMRC forms. With this in mind, here is our summary of some of the key documents companies will get to know after setting up a new business. In all likelihood, your accountant should deal with most of these forms on your behalf.

For in-depth details, visit the HMRC site, and always check with your accountant first, if you are unsure about the information you are required to submit.

P45 - Possibly the most well-known form, a P45 is issued to an employee when they leave a period of employment. The document provides details of all tax and other deductions made during the current tax year. A 4-Part form, the first part is sent to HMRC by the employer, the remaining parts are retained by the departing employee. When the employee starts a new job, they should hand the new employer parts 2 and 3 of the P45, and retain part 1A for their own records.

Download P45 here - http://www.hmrc.gov.uk/forms/p45.pdf

P46 - This is completed when a new employee does not have a P45. This would apply if the employee has lost his P45, or if he is working for the first time. Additionally, this form should be used if the new employee is continuing his current employment as well as working for you, or the employee is a student working on a temporary basis.

Download P46 here - http://www.hmrc.gov.uk/forms/p46.pdf

P46(Car) - This should be completed if an employee is given use of a company car, or changes the car they are provided with by the employer. The form should also be used if an employee no longer has use of the car, or if you provide free fuel to the employee and have not notified HMRC of this fact before.

Download P46 (Car) here - http://www.hmrc.gov.uk/forms/p46car.pdf

P60 - This is an end of tax year certificate. It details the total pay for each employee, together with total PAYE tax and national insurance deductions made. A P60 must be given to each employee by 31st May following the end of the previous tax year (assuming they were working for you on 5th April of that tax year).

Sample P60 Form here - http://www.hmrc.gov.uk/ebu/p60(sngl-sheet)(07-08).pdf

P11D - This is the expenses and benefits return. This form details the cash value of all benefits or expenses you as the employer may have provided each "relevant" employee during the last tax year (and all directors). A "relevant" employee is someone who has earned £8,500 or more during the tax year (including the value of any expenses or benefits). The P11D must be completed and submitted to HMRC by 6th July each year, and a copy must be presented to each employee.

Some employers may also need to complete Form P11D(b), which shows Class 1A National Insurance contributions on expenses and benefits. If the employer has stated on Form 35 that no P11D(b) is due, then the form will not need to be submitted to HMRC.

Read the HMRC guide to the P11D form here.

P9d - This is similar to the P11D, but contains details of expenses and benefits provided by employees (not directors) earned at a rate of less than £8,500 in the tax year. The P11d form should be used for all other employees.

P11 - A "Deductions working sheet" which needs to be filled in and maintained throughout the tax year, for each employee (with some exceptions).

Download a sample P11 here

P14 - End of Year Summary for each employee for whom you have been required to fill in Form P11. Form P14 should be completed using information recorded on Forms P11 during the tax year. Page 3 of the P14 is the P60 certificate

P35 - End of year return completed by all employers. This form details the total tax and NI deducted for each employee during the previous tax year. It should be submitted to HMRC by 19th May each year.

Self Assessment Tax Return - Personal tax return. This should be completed if you have received a form from HMRC, or if you have received income on which tax needs to be paid. Paper returns must be returned by 31st October 2008, and online returns by 31st January 2009. In both cases, all tax owing must also be paid by 31st January 2009.

You can access the dedicated HMRC Self Assessment Site - http://www.hmrc.gov.uk/sa/

Posted October 30, 2008

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