Introduction
In this guide you will understand how to process year-end through Sona Pay.
Contents
- Process Year-End
- Migrate Tax Codes
- Issue P60's to your employees
- Create a final EPS Submission for the tax year
- EPS: Employment allowance claim
- Apprentice Levy & Allowance
Process Year-End
Once all pay-run have been completed for the current tax year, including having submitted all RTI submissions for the year, you can then begin your year-end process. You will need to complete your year-end process before you are able to process before you are able to open any new pay runs that fall in the following tax year.
On your home screen, within company profile navigate to company settings and select Year End, a box will appear for you to complete the year-end process, click Start year-end to progress.
Migrate Tax Codes
At the start of the new tax year, tax codes are changed and the w1/m1 flag needs to be removed. Here is where you can make the changes and apply them to employees, within the PAYE reference, all in one go.
Click "view changes" to review and edit tax codes if necessary, once ready, click Apply changes. Once applied a green tick will show on screen.
P60s are issued to employees who are employed by you on the last day of the tax year (5 April), P60s are not issued to leavers who have worked for you within the tax year and left prior to (5 April) as per HMRC rules.
You can view the P60s by selecting view P60s which can be downloaded and saved for audit trail purposes. P60s are automatically synchronised to the pay documents area within the employee's Sona App for employees to view and download in PDF format.
Create an EPS Final Submission
This submission will tell HMRC that you are finished with this tax year and not to expect any more submissions.
Once submitted a green tick will show on screen once again.
EPS Employment Allowance Claim
If you claimed the employment allowance in the previous tax year, a new EPS claim will be generated for you at year end. You need to apply to HMRC every year to indicate you are eligible for the employment allowance. If you weren't eligible last year, but are this year, you will need to flag the company as eligible in company settings for EPS employment allowance claim to be available for sending.
Then, go to pay and refresh your screen, you are now ready to open a pay run in the new tax year when you're ready to.
Apprenticeship Levy and Allowance
Please ensure you review and adjust your company's tax settings for the new tax year as appropriate. This includes small employers relief, employment allowance and apprenticeship levy allowances. If you're unsure, please revert to HMRC's guidance https://www.gov.uk/guidance/pay-apprenticeship-levy.