Payroll

Get ready for the new tax year

The new tax year starts on 6^th April 2022.  Before you process wages in the new tax year you need to complete a few simple tasks to set up your software.

Check you’re using the correct version

Before you can process in the new tax year you must install v28.01.360.

To check that you have installed Sage 50cloud Payroll V28.01.360

1. On the menu bar, click Help then click About.
2. In the Program Details section, check your version number starts with 01.360.

If your version number doesn’t start with 28.01.360, you need to download and install v28.01.360 before processing any wages in the new tax year as this includes the new Employment Allowance legislation 2022/2023 tax year.

Update your employees’ tax codes

For the 2022/23 tax year, the personal allowance has not increased.  This means that the emergency tax code for 2022/23 is still set to 1257L.  You will not change your employees’ tax code unless informed by HMRC.

You should need to clear any week 1 / month 1 flags and check your Secure IR Mailbox for any new tax code notifications.

Clear the week 1/ month 1 flags

1. On the toolbar, click Clear, then click Swap.
2. Click Tasks, then click Global Changes.
3. Click Tax codes, then click Clear W1/M1 flag.
4. Click Yes, then click OK.

Employment allowance

From the 2022/23 tax year you will need to claiming the employment allowance if you are eligible.   From April 2022 this has increase up to £5,000.

1. Click Company then click Settings.
2. Click ‘Apply for EA’.
3. State Aid > click the downward arrow and select either ‘Applicable’ or ‘Not Applicable’, if applicable select the relevant State Aid Sector.
4. Click Submit.

Small employers’ relief

If you are eligible for small employers’ relief, you are eligible if you pay less than £45,000 Class 1 National Insurance (ignoring reductions such as Employment Allowance), you need to set your software to automatically claim it.

1. Click Company then click Settings.
2. Select the Eligible for Small Employers’ Relief check box.
3. Click OK.

New legislation for the 2022/2023 tax year

Once you completed the above tasks and you have completed your yearend you can continue to process in the new tax year.

Sage 50cloud Payroll v28.01.360 contains the legislation changes for the 2022/2023 tax year, there will be another update issued later in the year which will include the National Insurance threshold increase from 6^th July 2022.

If you would like help running your Sage 50cloud Payroll Year End, setting up for the new tax year, downloading the Sage payroll update or need any other help or advice with your payroll please contact us

MTD

MTD for VAT is already mandatory for most businesses and from 1st April 2022 it will apply to all VAT registered business with a taxable turnover below the VAT threshold. If you are affected by this change, you must submit VAT Returns under MTD from your first full VAT period after this date e.g. quarter ended 30th June 2022, or 31st July 2022 or 31st August 2022. If you are already using Sage 50cloud Accounts, the transition should be quite simple.

Check your software is MTD Ready
To be MTD ready, you must be using Sage 50cloud Accounts and have v24.2 or above installed.
• Under Program Details, note the Version Number.

Sign up
• Reconcile and submit your last government Gateway Return as normal and wait for your DD Payment if applicable to be taken.
• Register with HMRC for MTD.

Submit
Switch on MTD in your software
1. Click Settings then click Company Preferences.
2. Enter your password, then click OK and click the VAT tab.
3. Click the Enable Making Tax Digital for VAT submissions check box.
4. Click Yes.
5. Check your VAT details are entered correctly and then click OK.
6. Click File then click Exit to close Sage Accounts.
7. Reopen Sage Accounts.
When you next submit your VAT return it will submit under MTD.

Submitting your VAT return under MTD
1. Run your VAT return as normal and reconcile your VAT return.
2. Post the VAT transfer journal as normal.
3. Click Submit online
4. Click Next.
5. Check your company name and VAT Registration number are correct, then click Next.
6. In the Gov.uk window, scroll to the bottom and click Continue.
7. Enter your government Gateway ID and password, click Sign in.
8. Click Continue then select a method to receive your access code.
9. Click Continue and then follow the on-screen prompts.
10. In access Code enter the code your received, then click Continue.
11. Click Continue then click Grant Authority.
Authority must be granted each time you submit an MTD VAT Return.
12. Under Submit your Period, in the drop-down click the obligation period you want to submit for.
Tip: More than one obligation period may be listed, take care to choose the correct one.
13. Click the confirmation check box then click Submit to HMRC.
14. When the successful submission window appears, click Close.
15. If required, to view a submission confirmation report, click Submission confirmation.
16. If required, you can record your VAT payment or refund, then click Close.

If you would like help submitting your VAT return under MTD or need any other help with your Sage Accounts please contact us on

Telephone 01691 684011/654545

Or

Email: [email protected]

Payroll

Updating your employees’ tax codes

From the 2022/23 tax year, the personal tax allowance remains at £12,570.  This means that the emergency tax code remains at 1257L and you don’t need to update employees’ tax codes

However, if you receive a P9 or P6 from HMRC, you will need to update an individual employees tax code.  You should clear any week 1/month 1 flags for the employees too.

Tip:  There are no separate increases for Scottish and Welsh tax codes.

Update an employee’s tax code

There are different steps depending on how HMRC contacted you, you will either get a letter through the post, or an IR Secure Mailbox notification.

Received a letter

1. Select the required employee and click the Employment
2. In the tax code box, enter the tax code HMRC have stated.
3. Click Save.

IR Secure Mailbox Notification

1. Click E-submission, then click IR Secure Mailbox.
2. Select P9
3. Click Apply.

The employee tax code will now be updated and you can clear the week 1/month 1 flag.

Clear the week 1/month 1 flag

1. Select the required employees.
2. Click Tasks then click Global Changes.
3. Click Tax Codes then click Clear W1/M1 flag.
4. Click Yes then click OK.

If you would like help updating your employees tax codes, clearing week 1/month 1 flag(s) or need any other help or advice with your payroll please contact us

 We can also provide a remote access service where we can directly link into your computer to help you resolve your Sage Accounts or Payroll problems.

Accounts

Which files to include in a Sage 50cloud Accounts Backup

When you backup your Sage 50cloud Accounts data, you can choose what file types you want to include in the backup.  You can either select all types, or you can select specific types.  For example, you might want to backup data files on a daily basis but include other files once a month etc.

To backup

1. Go to File > Backup.
2. Select what files you want to include in the backup
3. Filename – this consists of the company name, date and time, you can change it to whatever you want but it must end in .001.
4. Location – click Browse to find the location you want to back your data up to.

 If you are not sure what the different files are and what they contain see below.

Data Files – Data files includes your company details, all record types and processing information.

Tip: This is the file you need to backup most regularly.  We recommend backing up your Data Files either daily or every time you use Sage.

Transaction Attachments – Documents attached to supplier invoices and credits.

Report Files – If you have customised any of the reports in Sage 50cloud Accounts, or Sage have created any bespoke reports for you, select this option.

Layout Templates – If you have customised any layouts in Report Designer such as invoices or statements etc, select this option.

Record Attachments – Documents attached to customer/ supplier records and bank reconciliation PDFs.

Image Files – any images that have been added to Stock Records.

Company Archives – This includes historic data files that have been created through the archiving process.

Tmail Database– This copies the transaction email data files.

Note: This feature is rarely used and is not available by default unless enabled.

HMRC Submission files – this includes details of submission information of VAT returns, EC Sales list, CIS monthly Return submission data.

If you would like help backing up your Sage 50cloud Accounts data or need any other help please contact us