You can use this option to pay your tax and national insurance (NI) directly from Sage 50 Payroll.

The Collector of Taxes wizard produces two payment files that you can import directly into your banking software, to pay HMRC.

Before you start

To use Collector of Taxes, you need to set up and configure e-banking and enter your company bank account details first.

The access rights required

To use the Collector of Taxes tool, you must have access to:

• All employee records
• E-banking
• Collector of Taxes
• The Bank tab of Company Settings

If you usually log into Sage 50 Payroll using the Manager username, you automatically have access to all areas.

Check your HMRC accounts office payment details are correct:

1. Go to Company, then Settings.
2. Go to the HMRC Payments tab.
3. From the Accounts Office dropdown list, select Cumbernauld.
   • This automatically populates the correct account name, number and sort codes to make payments to HMRC
4. Select

   OK.

You've set up your software and can use Collector of Taxes.

Create a payment file

Before you generate your payment file, you must process your payments for the tax month, and run the P32 report.

When you print the P32, clear the Record employment allowance, employer's NI and total amount due checkbox.

1. Go to e-Submissions, then Collector of Taxes.
2. Select Next.
3. Enter the following information:
   

   Is this a payment for a previous tax year, either in arrears or for the final period?	To specify that the payment is for the current tax year, from the dropdown list, choose No. To specify that the payment is for a previous tax year, from the dropdown list, choose Yes.
   Tax Year	From the dropdown list, choose the tax year to which the payment relates. By default, the current tax year appears.
   Tax Month From Tax Month To	If the payment is for the current tax year, specify the tax month you're paying for in the Collector of Taxes Wizard. To run the Collector of Taxes Wizard for one month, enter the relevant tax month in both boxes. For example, to run the wizard for June only, enter three in both the From and To boxes, as June is tax month three. You can run the tool for the range of tax months you require. For example, enter one in the Tax Month From box and three in the Tax Month To box to run it for Quarter one.

4. Select Next then, to let Sage 50 Payroll calculate the amount of tax and NI due from the payment history, select Yes. If you want to enter the amounts due manually, select No.
   • Sage 50 Payroll calculates the tax and NI due from the history of each of your employees' updated pay periods. It then collates these values from within the tax month that you specify. Collector of taxes doesn't include any manual amendments that you make to an employee's year to date values
5. Check or enter the values then click Next.
   • If you're eligible to claim any employment allowance for the period, this appears here. It deducts from the amount of employer NI due
6. Check the details are correct, then select Finish.
7. If required, to print the payment details, click Show Details, click Print then click File.
8. Confirm your printer settings, then select Print.
9. Select File then click Exit.
10. To generate the payment file, click OK.
    • Depending on your banking software, the Payment Processing window may appear. Ensure that the debit date is the same as your processing date, make your selection from the available options then click OK. The debit date is the date that the payment transactions use when you post to your bank
11. From the Save As window, specify a file name and where to save the payment file, then click Save.

Make a single payment for your tax and National Insurance (NI) liability

Sage 50 Payroll creates two payments, one for tax and one for NI. If for any reason HMRC requests you make a single payment, you can either: