Tips

Payroll 

Payroll New Year

1. Check you’ re using the correct version.

Before you start processing the new tax year, you must have installed the update for the 2024/25 tax year, V30.00.226.

2.     Update your NI rates.

The spring Budget 2024 announcement included a reduction in the main rate of employees’ National Insurance for the 2024/25 tax year.

You must update your NI rates in Sage 50 Payroll V30, before you process a 2024/25 payroll.

3. Update your employees’ tax codes.

For the 2024/25 tax year, the personal allowance and emergency tax code remains the same at £12,570 and 1257L. This means you do not need to change your employees’ tax codes unless informed by HMRC.

You do however need to remove the week 1 / month 1 flag on any employees’ tax codes before processing in the new tax year.

4. Small employers’ relief

If you are eligible for Small Employers’ Relief (SER) (previous years gross National Insurance must be less than £45,000), you need to set your Sage Payroll to calculate and claim it.

5. Apply for Employment Allowance

TIP: make sure your process date is set to 6/04/2024 before completing this.

In the 2024/25 tax year the employment allowance allows eligible employers to reduce their annual Employers National Insurance liability by up to £5,000.

Submit the Employer Payment Summary (EPS) for Employment Allowance

1. Click Company, then click Settings.
2. Click the Apply for EA
3. From the State Aid drop-down menu, select one of the following options:

• Applicable
• Not Applicable

If State Aid is applicable, select the relevant State Aid Sector. For more information on State aid, visit Gov.uk.

4. Click Submit then click Continue, then click Submit then Submit

At this stage, HMRC receives an EPS with Employment Allowance application.

• If your application is unsuccessful, you receive a notification in your IR Secure Mailbox within five working days.
• If you don’t hear back from HMRC, then your application has been successful, and you can then select the Eligible for Employment Allowance check box within Company then Settings. Once you select this check box, your software is set up to calculate Employer Allowance.

Memo

If you select the Eligible for Employment Allowance check box after you have already processed one or more tax months, you must re-run your P32 for each month of the tax year starting from month 1. Sage 50 Payroll then calculated the Employment Allowance due in each period and records these values in Company Settings > HMRC Payments of your software.

6. Pensions Data Exchange

If you use the Pensions Data Exchange (PDX) to send data to your provider, there are some additional steps to complete at the start of the tax year.

If you need help running your payroll year end routine or setting up for the new Payroll 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.