- What if I need help?
- Is it easy to manage your own payroll?
- Is this software useful for CIS subcontractors?
- Is this software useful for CIS contractors?
- What information do I need to collect about my employees?
- What about variable payments, sickness, pregnancy, and so on?
- How can I check that I’ve got my payroll right?
- How do I pay HMRC the right amount each month or quarter?
- What do I need to do at year end?
- Is it easy to switch to using 12Pay in the middle of a PAYE year?
- When will you be supporting HMRC's RTI (Real Time Information)?
What if I need help?
That is what we are here for. If you have queries about operating or installing the payroll software then by all means get in touch with us. We only ask that if you are satisfied with the support you receive from us that you should buy a premium licence if you don't already have one, to show your appreciation.
Is it easy to manage your own payroll?
Our users have seen that doing your own payroll is easy when you have the right HMRC recognised software guiding you through the process.
Think about it. You give the company managing your payroll a fairly small amount of information about your employees:
- Who are they?
- How much are they paid?
- What documents (such as P45s) have they given you?
- When have they been off sick?
- Are they pregnant?
The time you spend compiling that information on special handwritten forms or in Excel could equally well be spent entering it into your own payroll package. It makes complete sense to save both time and money by doing it yourself.
Is this software useful for CIS subcontractors?
Yes, if you are a registered employer or a limited company. The free software will do some of the work for you and if you buy the CIS edition then the software will automatically take account of the CIS deduction from payments to you by your customer and will allow you to record the CIS references supplied you by your customer when they pay you.
You should use the payroll system to pay yourself gross of the CIS deduction and (if you have the CIS edition) the system will then automatically subtract the CIS deduction from your PAYE/NI liability to HMRC because it has already been witheld by your customer.
The CIS edition currently costs a mere £28+VAT per year.
Is this software useful for CIS contractors?
Yes, the software allows you to run payrolls that pay CIS contractors. You can specify if they are paid at the higher rate, the lower rate, or the gross rate, and the system will automatically calculate their deduction and apply it to the P32 and P35 documents. The system copes with materials payments to subcontractors too.
You can also print a CIS300 report that helps you prepare your CIS300 monthly return.
And you get extra features if you have a premium licence as well as a CIS licence. You can submit the CIS300 monthly return via the internet, and you can request subcontractor verification numbers via the internet too.
What information do I need to collect about my employees?
Here is what you need to know to starting paying someone:
- Their name and gender.
- Their NI number and their birthday (though neither of these are compulsory we strongly recommend that you find them out)
- Their tax code. If they started with you in the current tax year they need to give you a P45 from their previous employer OR you get them to fill in a P46 if they don’t have a P45. In either case enter the details in the payroll software, and the software will automatically tell you their tax code. If they were already employed by you at the start of the tax year, or if you are transferring existing data to new payroll software you should already know their tax code, and you just enter it directly
- Their NI table letter for calculating NI deductions. HMRC supplies a flowchart to help you decide which letter to use, and we link to that flowchart in our software so you have it to hand when you need it.
- Their pay.
The list is pretty short, isn’t it? The 12Pay payroll software has been designed so that all these key facts about your employee are entered in one place, to get the preparation completed as smoothly as possible. Other details such as their address are desirable, but not essential at the start. Just enter the basic details, press the “Calculate” button and then view the smart payslips, which print on blank paper so you don’t have to buy expensive specialised stationery.
What about variable payments, sickness, pregnancy, and so on?
Obviously some employees might have variable payments or deductions each week or month; good payroll software like 12Pay makes it easy to enter these. Absences such as pregnancy or sickness are simply entered into the software which then calculates the employee’s entitlement to statutory absence payments automatically, and it tells you of any further action that you need to take such as obtaining evidence from your employees.
How can I check that I’ve got my payroll right?
To give you extra confidence there is the payroll reconciliation report which compares each pay period with the one before and provides you with a detailed list of the differences. You can simply go through and check this list of what has changed. And each pay period you can change everything around as much as you like, run pay calculations as many times as you like, print your reports and payslips as many times as you like, before finally confirming that you are ready to finalise the results and proceed to the next period.
How do I pay HMRC the right amount each month or quarter?
Either monthly or quarterly you need to pay the Inland Revenue the PAYE and NI and student loan repayments that you have collected, less any allowances for statutory absence payments that your employees were entitled to. The 12Pay payroll software prints a P32 summarising what you owe, and you can read your payment straight off it. Many small companies like to pay quarterly, so the P32 is printed with both monthly and quarterly subtotals for you to keep it easy. Premium users can even pay HMRC (and their employees) electronically if they have appropriate banking software on their PC.
What do I need to do at year end?
At year-end you need to give your employees P60s. The software prints these on plain paper for you. No need to purchase expensive specialised stationery. You also need to do a year-end submission to HMRC. This is available to premium licence-holders (premium licences are inexpensive) virtually at the click of a button. Just check the figures and submit them across the internet to HMRC. Job done!
As long as you register with us and keep your software up to date the software will automatically start using new tax and NI bands at the right time, and employees will automatically have their tax allowances adjusted at year-end.
Is it easy to switch to using 12Pay in the middle of a PAYE year?
Yes, 12Pay has been designed to make it easy to enter a summary of your P11 data (available from your previous package or from your manual P11 records) at any time.
Once you've entered the P11 summary you can use the package just as if you'd been using it for the whole PAYE year, and year-end P14/P60 totals will include the summarised information.
The member's area of this website contains a video explaining what to do when switching to 12Pay in the middle of the PAYE year.
When will you be supporting HMRC's RTI (Real Time Information)?
RTI is expected to be optional from April 2013, and compulsory for most UK employers in October 2013. The 2013/14 software release in March 2013 will include RTI and we'll encourage our users to start using it from April 2013. Sometimes HMRC projects are delayed, and we will delay as well if HMRC does so, because there is no benefit to us or our users to being able to go ahead with RTI before HMRC is ready.