This article will outline the 2019/20 end of year procedure and provide you with a summary of the changes which are being introduced for 2020/21.
Do I need a week 53?
A week 53 takes place when your payslip date falls on Saturday 4th or Sunday 5th April 2020. This applies to weekly, fortnightly and four weekly paid employees. If your payslip date (the date in which your employees receive their pay) does not fall on either of these days then no week 53 is required. Upon completing week 52 you can migrate your data to 2020/21 and proceed to pay week 1.
The NI calculation for week 53 will be accomplished exactly the same as every other pay period. The only change will be for tax calculations were the software will automatically alter the employees tax to a week 1/month 1 tax basis.
Qtac will automatically include the ‘Final Submission Indicator’ within your final (W52/W53/M12) FPS submission.
Simply put, all you need to do at the end of the year is:
- Pay your final period (W52/W53/M12)
- Submit FPS (Full Payment Submission)
Any employee who is employed by your business on the 6th of April must receive a P60. If an employee has left prior to the 6th April they will not receive a P60.
A P60 can be produced from the Qtac software from “Reports > Year End > Electronic P60’s”. If you have the company name selected the software will run the P60’s for the whole company. For more information on P60's please click here.
Installing and Migrating the New Software
At the end of the tax year Qtac produces a new version of the payroll software. You are able to migrate the data from 2019/20 version of the software into the 2020/21 software once your final pay period has been completed. For more information on this process see Migrate last years data.
Changes Introduced in 2020/21
The Qtac 2020/21 payroll software introduces new statutory changes for the tax year.
Employment Allowance De Minimis State Aid
From April 2020 employment allowance is operated as De Minimis state aid. Employment allowance claims must now be submitted at the start of each tax year. You need to indicate all state aid sectors that apply to the business in order to submit an employment allowance claim. See our guide on this.
Employment Allowance Increase
From April 2020 the amount of employment allowance that can be claimed will increase from £3,000 to £4,000. This will allow eligible employers to reduce their (Secondary) Class 1 NIC (Employers NI) by £4,000 throughout the tax year. See our guide on this.
Employment Allowance Changes - £100,000 (Secondary) Class 1 NIC threshold
From April 2020 only companies with (Secondary) Class 1 NIC contributions (Employers NI) less than £100,000 are eligible to claim employment allowance. Companies with more than £100,000 (Secondary) Class 1 NIC contributions in the last tax year should not claim employment allowance. See our guide on this.
Statutory Bereavement Pay
A parent who loses a child under 18 or stillbirth after 24 weeks of pregnancy will be able to receive 2 weeks’ leave and statutory bereavement pay. The payments can be taken as two separate weeks given they are taken within 56 weeks of the deceased date of the child. See our guide on this.
Termination Payments and Sporting Testimonials
The government announced that from April 2020 it will be compulsory for the employer to pay NIC on any part of a termination payment. See our guide on this.
Off Payroll Worker
The government has reaffirmed plans to make changes to off payroll working (IR35) rules effective from 6th April 2020. See our guide on this.