Get ready for the new tax year

The new tax year starts on 6th April 2020.  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

This year due to the late Budget, before you can process in the new tax year you must install v26.01

To check that you have installed Sage 50cloud Payroll V26.01

  1. On the menu bar, click Help then click About.
  2. In the Program Details section, check your version number starts with 01.

If your version number doesn’t start with 26.01, you need to download and install v26.01 before processing any wages in the new tax year.

Update your employees’ tax codes

For the 2020/21 tax year, the personal allowance remains at £12,500.  This means that you don’t need to update the tax codes for your employees using the Global Changes option this year.  However, you should still clear any week 1/ month 1 and check your IR Secure 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

If you are eligible for the employment allowance or small employers’ relief, you need to set your software to automatically claim them.

From the 2020/21 tax year, there are new rules for claiming the employment allowance.  You now need to apply to claim the employment allowance at the beginning of each tax year.

Small employers’ relief

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

New legislation for the 2020/2021 tax year

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

Sage 50cloud Payroll v26.01 contains the legislation changes for the 2020/2021 tax year.

Not all accountants are grey.

Call us now for your FREE consultation on 01691 654545 or click here...