SAGE Payroll

Correcting errors in a previous tax year

If you notice an error in the previous tax year, you will need to fix it.

Backup your data

Before you start to do anything, it is important to back up your data.

Print historical payslips

Print historical payslips (unless you have already got copies) to ensure you have details of the original payment for all the periods you need to reprocess. This will help you later in the Enter the correct pay section.

Rollback

If you process any payments in the new tax, use the rollback on these payments first. Once you remove these payments with rollback, you can continue to rollback payments in the previous tax year.

Set the process date to the prior tax year and follow the rollback process until you are back to the period you need to amend.

Note: During the rollbacks, a message sometimes asks if you want to clear year to date values. Select No on this message if it appears.

Reprocess the prior tax year

Process the correct pay for the employee(s) as normal, starting from the earliest period you need to reprocess. The reprocess each period back to the date for the prior tax year.

You can use the historical payslips that you printed earlier. Make sure that you print your normal reports, including the payslips and then update records for each period.

If you normally post the nominal link to Sage 50 Accounts, correct salary journals to Sage Accounts after you update the records.

Notify HMRC of the changes

To let HMRC know of the changes, submit an adjustment to HMRC for a previous Tax year.

Note: Submit the amendment to HMRC before you start reprocessing in the next tax year.

Updating tax codes

Before you start reprocessing in the next tax year, check your employee’s tax codes are correct. If required, update your employees’ tax codes.

Submit an EPS for a previous tax year

To inform HMRC of values that are not in the full payment submission (FPS), submit an employer payment summary (EPS) for a previous tax year.

If you would like help correcting a problem in a prior tax year or need any other help or advice with your payroll, please contact us

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

Sage 50 Accounts

Setting up Making Tax Digital for Income Tax for Sole Traders

Note: This is just for sole traders and not for Landlords

1. Log in to Sage 50 Accounts as Manager.
2. If you are not already using connected service, go to Apps and add-ons and select learn more in the MTD for Income Tax tile.
3. Press Get Started.

If you are already using connected services, you can open from Connected services then MTD for income tax.

You will then see ‘Set up Making Tax Digital for income tax’ window.

4. Select Connect company to a Sage Account.

This opens the ‘Connect your company to a Sage account’ window.

5. Enter your name then press Continue.
6. Enter your company details then press Continue.
7. Log in with your Sage account email address. Use the Sage account who is the account owner.

You will see a message ‘Great news, you’re connected’ with your company name and Sage Account email.

8. Press Continue.
9. Select the relevant option from:

• Sign up on HMRC – Select this option to sign up to MTD for Income Tax on GOV.UK.
• I’m signed up – continue setup – select this option if you have already signed up to MTD for Income Tax.

Once you have signed up, the next step is to authorise Sage to share updates with HMRC. You can then submit your quarterly submission values.

10. Press Authorise with HMRC.

NOTE: You will need your Government Gateway login details and your National Insurance number.

11. Press Continue on the ‘Allow your software to connect to HMRC’ window.

The ‘What you will need’ window appears.

12. Press Sign in to the HMRC online service.
13. Enter your HMRC credentials, then press Sign in.
14. Choose Give permission on the ‘Allow your software to connect with HMRC’ window.
15. Enter you National Insurance number on the ‘Find your business’ window then press Continue.
16. Select the correct business then press Continue.

The Business overview displays your company information.

17. Press Confirm and complete setup.

TIP: you can change the Update period in the Making Tax Digital for Income Tax Settings Window.

Now you have set up MTD for Income Tax, you will see new options in the software:

• MTD for Income Tax settings option in Connected services
• Assign Income Tax categories in Nominal Codes.
• Submit quarterly update in Nominal Codes.

Assigning Income Tax categories for Making Tax Digital (MTD) Sage 50 accounts V33.1 and above

You need to set income tax categories on the Profit and Loss nominal codes so you can send you MTD for Income Tax Quarterly updates.

When you submit your quarterly update, you will see two sections, Business income, and Business expenses.

The categories in the Assign Nominal Codes to Income tax Categories window relate to the areas in your Chart of Accounts.

These are:

• Sales
• Purchases
• Direct Expenses
• Overheads
• Taxation

1. Log in to Sage 50 Accounts as Manager or as a user with full access to the Nominal codes module.
2. Go the Nominal codes then select Assign Income Tax categories.
3. Select the relevant category in the Income tax category dropdown against code Name.

In Sage 50 accounts V34 and above, you can use the Search function to narrow down the list of categories on this window.

4. Select Save once you have assigned your categories.

Note: When you assign the tax categories to your Profit and Loss codes, the software assigns them to all relevant existing transactions.

If you would like help setting up MTD for Income Tax or assigning tax categories to your Profit and Loss Account or any other help with your Sage 50 Accounts, please contact us

Generating reports in Sage 50 Payroll

Summary

There are several different ways you can generate reports in Sage 50 Payroll. Each way is quick and easy.

Preview a report
1. Select the required report you want, for example Form P32 – Employer Payment Record.
2. To preview the document on-screen. Click Preview.

Print a report

1. Select the required report you want, for example Form P32 – Employer Payment Record.
2. Once you have checked the report or layout, click Print.

Email a Report

1. Select the required report.
2. To preview the report on-screen, click Email.

Save a report as a PDF

1. Select the required report you want.
2. To preview the report on-screen, click Export.
3. Save your report to the required directory, selecting a file name and type.

Send your report to Microsoft Excel

1. Select the required report you want.
2. To preview the report on-screen, click either Report to Excel, or Data to Excel.

If you have problems generating a report from your Sage 50 Payroll program or need any other help or advice with your payroll, please contact us

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

Sage 50 Accounts

Bank Reconciliation

It is always a good idea to reconcile your bank accounts on a regular basis, mainly every time you receive a statement from your bank, and especially before you submit your VAT return to ensure that your have entered the correct figures, not missed anything or duplicated anything.

1. Bank Accounts >
2. Statement Reference: – Enter a statement reference e.g. the sheet number and the date you are going up to 151 30-06-26
3. Statement Date: Enter the date you are reconciling up to eg the month end date 30/06/26.
4. Click
5. In the Un-matched transactions pane: select the first transaction that appears on your bank statement.
6. Either click Match or double click the transaction

The transaction moves from the Un-matched transactions pane to the Matched transactions pane.

7. Repeat steps 5 and 6 until all transactions on your bank statements are matched.

TIP – if you are using Sage selection style you can select multiple records by just clicking on them or if you are not just hold down Ctrl Key.

TIP – If you find you haven’t entered a transaction into Sage that shows on your bank statement, you can click at the top of the screen to enter a bank receipt, payment, customer receipt or refund, supplier payment or refund and transfers, these will automatically then appear in the Matched transactions pane.

If you require, you can save the reconciliation at any point and complete it later, click Save progress  Next time you open the Reconciliation window, to open the saved reconciliation, click Use Saved.

Reconcile your bank statement

Once you match all the relevant transactions:

1. Check the Matched Balance and the Statement Balance are the same.

The Difference should be zero.  If the difference:

Is zero  Click Reconcile

A progress bar appears while flagging your transactions and creates a                                         PDF file of your reconciliation.

Isn’t      You must find out why the difference isn’t zero.

Zero      If required, click Save progress.  You might need to go to Transactions

to correct a transaction or delete a transaction. Next time you open the Reconcile window, open the saved reconciliation, click Use Saved.

View reconciliation report

If you want to view what has been reconciled:-

1. Click Bank accounts then click the relevant bank account.
2. Click Reconcile then click OK.
3. Click View history.

A PDF file appears for each reconciliation, with the file name showing you entered.

4. Double-click the required pdf file.

If you have problems with your bank reconciliation or if you need any other help with your Sage 50 Accounts, please contact us