Brought to you by

UK payroll year end is coming and Xero is getting ready

Posted 2 years ago in Small business by Aaron Bloom
Posted by Aaron Bloom

UK Year End is approaching quickly and the Payroll team in Xero have been hard at work to make this your smoothest year yet.

We will keep you updated over the coming weeks with information about how to use Payroll in Xero to make your year end tasks a breeze. In the meantime, here is an overview of some of the changes made by HMRC and a sneak peek of the product updates that you can expect:

2017/18 Fiscal Year – Updates from HMRC

Income Tax Thresholds
  • Personal Allowance will increase from £11,000 to £11,500
  • Higher Rate Threshold will increase from £43,000 to £45,000
National Living Wage Increases
  • National Living Wage for employees aged 25 and over will increase from £7.20 per hour to £7.50 per hour
  • Additional National Minimum Wage increases for those aged 24 and under

What is Xero doing to help you make this your easiest year end ever?

2017/18 Tax Code Uplifts
  • W1/M1 values will be reset going into the new tax year.
  • Not sure how to lift your tax codes for the new year? No problem! Xero will handle tax code uplifts for employees with tax codes ending L, M, and N for 2017/18.
    • All other tax codes will be rolled over and can be updated manually if needed.
Employment Allowance
  • Soon you will be able to choose your employment allowance settings for the new tax year.
Report Updates
  • P60 reports for the 2016/17 tax year will be made available in March.
  • P11 and P45 reports will be updated to support the new tax year.
EYU (Earlier Year Update)
  • More information coming soon, but we want to help you file EYUs directly from Xero

More updates and information about when these changes will be available and what you can do to get ready will be coming soon.

7 comments

Mehdi Fazal
February 10, 2017 at 8.48 am

In preparation of putting payroll on to Xero from other systems, you could make available at £0 for the period to March, and roll the 6 month at half price from April onwards. This gives us a chance to get all data of employees on board, and more important, the pay templates etc also on board.

Also we would like to have a payslip option that shows the hours in the employee template relflected and the rate of pay shown.

This would enable me to put another 125 employees accross 11 companies before I go abroad on 1 March, ready for the payroll clerk in the company to do the April payroll – in time.

Jane Stanley
March 31, 2017 at 11.58 pm

I can’t find any mention of Payrolling Benefits in Kind/Expenses – Has this been done? If not, when will it be since it comes into effect next week!

Greg Scott
April 12, 2017 at 1.33 am

When will the final EPS for 2016/17 be submitted?

Maria Benjamin
April 12, 2017 at 5.30 pm

Hello Greg!

Thanks for the question! The final EPS’s for 2016/17 will begin processing on 12th April PST. Let us know if you have any further inquiries.

Best,
Maria Benjamin

Maria Benjamin
April 12, 2017 at 12.03 pm

Hello Greg!

Thanks for the question! The final EPS’s for 2016/17 will start processing on April 12th PST. Please let us know if you have any further inquiries.

Best,
Maria

Steve Taylor
April 16, 2017 at 4.36 am

Blog says P60 will be available in March but can only see the 2015/16 on our menu.

Leave a reply

Your email address will not be published. Required fields are marked *