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End of year employer compliance

Are you ready?

As the 2019-20 UK tax year commences, it is important that employers give consideration to their 2018-19 tax year end procedures to ensure that reportable benefits and expenses are both captured and reported on the correct return, so that tax and National Insurance Contributions (NICs) are paid on time and are accurate.

The following table details a number of key compliance and upcoming changes that employers should be aware of.

Date	Key compliance deadlines and upcoming changes
1 April 19	Increases to the National Minimum Wage (NMW) and National Living Wage (NLW) rates. Consideration should be given to employees paid at the current NMW/NLW rates, including those employees whose gross pay is reduced via participation in salary sacrifice arrangements.
6 April 19	Increase to minimum employee and employer pension contribution requirements under UK pension auto enrolment, which will likely result in increased pension costs for employers.
6 April 19	Removal of the requirement for employers to check evidence, such as receipts, of the amounts spent when using benchmark scale rates or overseas scale rates to pay or reimburse employees’ qualifying expenses incurred when travelling for work.
5 May 19	Deadline for submission of quarterly intermediaries report for the period of 6 January 2019 – 6 April 2019.
19 May 19	Deadline for reporting to HMRC under PAYE special arrangement for short term business visitors.
31 May 19	Deadline for issuing forms P60 to employees for the 2018-19 tax year.
1 Jun 19	Deadline for providing employees with a statement of payrolled benefits in kind for the 2018-19 tax year, where the employer has registered for Voluntary Payrolling of Benefits in Kind.
6 Jul 19	Deadline for entering into a PAYE Settlement Agreement for the 2018-19 tax year.
6 Jul 19	Deadline for submission of Forms P11D and P11D(b) for the 2018-19 tax year.
6 Jul 19	Deadline for submission of online employment-related securities annual returns.
22 Jul 19	Deadline for online payment of Class 1A NICs (19 July for postal payments).
31 Jul 19	Non-statutory deadline for submission of PSA calculation to HMRC for 2018-19 tax year.
22 Oct 19	Deadline for electronic payment of tax/Class 1B NICs in respect of PSA calculations for the 2018-19 tax year (19 October for postal payments).

How can KPMG help?

KPMG’s Employment Tax team can provide assistance on all aspects of employer compliance. This includes:

Compliance risk review

KPMG has an experienced team who carries out HMRC-style reviews to identify any areas of non-compliance and raise awareness of key risks.

We draw on our experience of HMRC’s Know Your Customer reviews and other aspect-based HMRC reviews such as termination payments, employee expenses, optional remuneration and globally mobile employees and will work with you to ensure that you fully prepared and audit ready.

The review typically includes a workshop for key stakeholders to talk through processes and controls, to identify key risks and provide training to stakeholders who do not have a tax background. The workshop will be followed by sample testing of key documents to establish whether the risks identified are likely to lead to an underpayment of tax and NICs.

Year-end review

We offer a range of support to clients, either to prepare or review returns or act as a sounding board around areas of difficulty. This includes:

Preparation and submission of PSAs: advice on items which may be included with the PSA; analyse general or nominal ledger codes; and submit the PSA computations for agreement with HMRC on behalf of the organisation.
Preparation and submission of Forms P11D: prepare forms on behalf of clients; advise on any tax implications associated with benefits and expenses provided by employees; or review Forms P11D prepared by you.
Employment-related securities annual returns: advise on reportable events and provide assistance with the preparation and submission of online returns to HMRC.
Short-term business visitor reporting: for UK inbound business travellers we advise on your reporting obligations and undertake a review of your systems and processes to ensure they are sufficiently robust to identify and track relevant individuals.