Get ready for the new tax year

The new tax year starts on 6th 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 6th 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

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