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  1. How do I claim the £2000 Employers NI Allowance? 
     
  2. How do I file an FPS after April 19th? (How do I file an EYU?) 
     
  3. Why am I having to give a Late Filing Reason when I file an FPS? 
     
  4. How do I file an EPS or a nil EPS? 
     
  5. How do I file RTI?     How do I complete a weekly or a monthly payroll?
     
  6. How do I file a Full Payment Submission (FPS)?
     
  7. Why can't I file my P45/P46 or P35/P14 with HMRC?
     
  8. Why can't I Verify an employee?
     
  9. How do I enter a SSP or an SMP absence that continues from the previous payroll software?
     
  10. Why do I get an authentication failure when I try to file RTI?
     

How do I claim the £2000 Employers NI Allowance?
In PAYE year 2014/15 and onwards most business and charity employers are entitled to a £2000 allowance against employers NI contributions. The first £2000 of employers NI doesn't have to be paid to HMRC. You have to claim this allowance through an RTI EPS (Employer Payment Summary) and we've set up 12Pay so that ticking a single box is sufficient to claim the allowance automatically.

Go to the employer form in the software (ie the form with the company name and address on it). The "Claim Employers NI Allowance" button is on the right of the form, between the HMRC login password and the button with your licence number on it. Click the tick box to claim the allowance, and when your payroll(s) have passed the end of the month the software will automatically prepare an EPS for you that you can submit to claim the allowance. Also your P32 report will be adjusted to show the effect of the allowance on what you owe HMRC.

Employers NI will still be calculated and shown on payslips, P11s, P60s, and so on. It is an allowance against paying the first £2000 of employers NI to HMRC, not an instruction to stop calculating employers NI.

Please note, the automatic generation of the EPS to claim the allowance has been in 12Pay since release 1.15.4. The easiest way to check that you have version 1.15.4 (or higher) is to select "Help / Get Latest Release" at the top left of the main 12Pay software form, and you'll be invited to download and install the latest software release if necessary. Prior to version 1.15.4 you can still claim the allowance but you have to request the EPS manually from the Employer form.

Please note, the employer's NI allowance is a company-wide rebate against payment, whereas the nominal accounting entries generated by 12Pay are tied to particular employees and payroll runs. Therefore the nominal accounting entries in eg "Export Nominal" cannot include the allowance. You will need to enter the allowance manually in your books as a single 2 line entry each PAYE month.  You can read the total allowance for the month off your P32 after the month has finished.

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How do I file an FPS after April 19th? (How do I file an EYU?)

We have made a new page explaining what to do if you missed the 19th April filing deadline for FPS.

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Why am I being asked for a Late Filing Reason when I file an FPS?
You should file FPS returns on or before the pay day.

This year HMRC has introduced the requirement to explain why you're filing late if you file after the pay day.

There is a dropdown on the FPS, with a list of possible reasons for the late filing as specified by HMRC. It is likely that the only one that would apply in most cases would be "Reasonable Excuse".

Perhaps you aren't filing late if you pay your employees today or in the future, but that isn't the pay day that you've entered in 12Pay. If the pay day in 12Pay is wrong then you should file your week 1/month 1 FPS now using "Reasonable Excuse", and then alter the pay day for week 2/month 2 on the payroll form to the correct date for that week, before you process the next period. This may mean that you appear to miss a PAYE week out, if you've historically been calculating/filing your FPS in the wrong PAYE week. If altering the pay date means that you are going to miss a PAYE week you may wish to alter the employees' NI earnings values in order to ensure that they do not miss a week of contributions. Go to their NI tab, use the "Edit Summary for Code" option and add 111 to the "At LEL (a1)" field in the adjustments column for each employee.

When altering the pay day you can also alter the number of days that theworking period ends, before or after the pay day, so that statutorypayments still cut off at the correct date.

At the moment there are no penalties for late filing, but HMRC has suggested that a penalty regime may be introduced in October this year.

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How do I file an EPS, or a nil EPS?
Go to the employer form in the payroll software (ie the form with the company name and address on it). Select "Reports / RTI / Employer Payment Submission (EPS)" using the "Reports" button at the bottom left of that form. When you do that a little form will appear for a few seconds with the PAYE year and period number on it. Select PAYE year "2014" and period 1 to file nil EPS for April 2013, "2014" and period 2 for May 2013, and so on; then click "Continue" to proceed to the EPS.

Now you should see the EPS which has a Submit button on its Submit tab. You should only file a nil EPS in PAYE months in which there was no FPS filed, or if there are PAYE adjustments in that month such as SSP Recovery or SMP Compensation. You don't have to file an EPS for a PAYE month if you paid employees in that month but no PAYE/NI is owed to HMRC, because in that situation HMRC gets all the information it needs from the FPS that you file when you pay the employees.

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How do I file RTI?
Please see the next question, "How do I file a Full Payment Submission", which is the same question asked a different way...

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How do I file a Full Payment Submission (FPS)?

You file a payment submission by advancing your payroll to the next week or month. There is no separate button for filing an FPS. Advance your payroll to week 2 or month 2 and a Full Payment Submission form will appear. You'll just have to click "Submit" to actually file it with HMRC. If you're new to 12Pay try watching the Short Demo Video, which includes this from about 2 minutes in.

 

You click the button marked with the red rectangle to advance the payroll to the next period and file its RTI. As you can see in the image that button is sometimes disabled. In that case you need to click one of the buttons in the green rectangle to Calculate your payroll. "Payslips" is often a good option because it allows you to check everyone's pay before you file your RTI return. Another good option is the Report called "Period Summary" which appears at the top of a menu when you click the Reports button.

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Why can't I file my P45/P46 pr P35/P14 with HMRC?

P35/P14 filing is obsolete under RTI. You can't file them any more, and you don't have to do so because they are replaced by FPS/EPS filing.  The option is still visible in the software for the small number of users still needing to file prior years up to 2012/13.

P45 and P46 filing with HMRC is also obsolete. HMRC will know about new starters because you pay them and HMRC sees the payments under RTI, and they'll know about leavers because you stop paying them. If someone left towards the end of the 12/13 tax year HMRC will get their details on their P14. HMRC will no longer accept P45/P46 by internet filing, even for employees who started or left before 6th April.

If you want to print the P45 (Online) document that doesn't need stationery you'll be able to request one of these without filing as soon as your payroll has advanced to 2013/14 as long as your RTI status is Live.

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Why can't I Verify an employee?

You only need to verify at all if your employee doesn't have an NI Number, or you doubt that their NI Number is correct.

HMRC will not accept any attempt to verify an employee until you have filed a payment submission for your company. If you try they will just reject the verification with an error message.

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How do I enter SSP or an SMP absence that continues from the previous payroll software?

We have made a couple of pages that describe what to do in these two situations.

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Why do I get an authentication failure when I try to file RTI?

Here are the things that need to be correct to avoid an authentication failure...
  • Internet ID is your 12 letter user ID from HMRC
  • Password is the password that goes with that 12 letter user ID

You can check those by logging into the HMRC gateway manually. If you do that successfully you'll be able to see on that web page....

  • Tax Office (a 3 digit number)
  • The PAYE Reference consists of a short series of capital letters and digits. The Tax Office and PAYE Reference appear together on the front of the annual PAYE payslip booklets where they are labelled "Employer PAYE Reference". They also appear on other correspondence from HMRC.

You need all 4 of those things correct before the submission will work. If any one of them is incorrect you just get the authentication failure message that you've probably already seen.

Over the last 7 years we have been told hundreds of times by users that they've entered everything correctly but they get the authentication error message from HMRC. Every time the user is certain that they cannot have made a mistake. THIS CLAIM HAS NEVER ONCE BEEN CORRECT. If you think that you've entered everything correctly and you're still getting an authentication error message then you just haven't checked carefully enough, I'm afraid.

Common errors include
  • confusing 0 and O (zero and oh)
  • or confusing 1, I, or l. (one, eye, or ell)
  • entering the HMRC Payment reference where your tax office PAYE reference should go
  • entering an HMRC gateway user ID more than 12 digits long
  • entering a password more than 12 characters long
  • entering a correct HMRC gateway user ID that isn't enrolled into PAYE Online (also known as PAYE for Employers)
  • entering a correct HMRC gateway user ID that is enrolled into PAYE Online but activation key from HMRC enrolment letter has not yet been enteredon the gateway (you have to login to the gateway when you get the enrolment letter from HMRC and enter the activation code)
  • A transposed pair of digits or letters somewhere in one of the codes. eg L2166 entered as L1266. Such errors can be surprisingly hard to spot.
  • A tax office and tax reference entered that bear no relation to the company's actual tax office and tax reference

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