Pierce is alerting businesses to a big change to payrolling as from April 2019, the Earlier Year Update (EYU) will no longer be a valid submission for the tax year 2019 /20 onwards.
Currently used to fix any inaccuracies in reporting, HMRC is introducing the change to make the processes simpler for businesses and to allow HMRC systems and employer payroll records to align sooner.
HMRC will extend the use of the Real Time Information (RTI) Full Payment Submission (FPS) from April 20 2019, to allow employers to continue to report revised year-to-date payment data after the deadline of April 19.
Since RTI was rolled out, this decision to cease EYU has been long awaited by businesses. Currently, if an employer notices an inaccuracy in payroll data, they submit an EYU to correct the amount. This involves the employer calculating the difference between the original submission and correct position for each employee by submitting the difference on an EYU.
The use of RTI Full Payment Submission (FPS) will be extended by HMRC to allow employers to continue to report revised Year to Date (YTD) payment data after the current deadline of April 19, however the EYU will be accepted for the 2018-19 tax year.
For further information about EYU and to find out how this will impact your payroll processes, contact Lisa Kennery on 01254 688 100 or email email@example.com.