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.  NOTE: If your payroll has Apprenticeship Levy (AL) liability, run Collector of Taxes before you send an Employer Payment Summary (EPS). This ensures the AL value automatically appears in the EPS wizard.
The access rights required To use Collector of Taxes, you must have access to all employee records, e-Banking, Collector of Taxes and 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. Enter your HMRC accounts office payment details - Click Company, click Settings then click HMRC Payments.
- From the Accounts Office drop-down list, select Cumbernauld. This automatically populates the correct account name, number and sort codes to make payments to HMRC. Click OK.
As long as you've set up e-Banking and entered your company bank account details, you've now set up the software to use Collector of Taxes.
Use Collector of Taxes to create a payment file Before generating your payment file, you must process your payments for the whole tax month, or quarter, and Print and check the P32 Employer Payment Record report. When you print the P32 - Employer Payment Record report, you must clear the Record employment allowance, employer's NI and total amount due check box. - Click e-Submissions, click Collector of Taxes then click Next.
- 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 drop-down list, choose No. To specify that the payment is for a previous tax year, from the drop-down list, choose Yes. | | Tax Year | From the drop-down 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 for which you're making the payment through 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 3 in both the From and To boxes, June being tax month 3. To run the Collector of Taxes Wizard for one quarter, for example, to run the wizard for the first quarter of the tax year, enter 1 in the Tax Month From box and 3 in the Tax Month To box. | - Click Next then, to let Sage 50 Payroll calculate the amount of tax and NI due from the payment history, click Yes. If you want to manually enter the amounts due, click No.
Sage 50 Payroll calculates the tax and NI due from the history of each of your employees' updated pay periods and collates all the values that you've updated within the tax month that you specify. Any manual amendments that you make to an employees year to date values aren't included. - Check or enter the values then click Next.
If you're eligible to claim any employment allowance for the period, this appears here. It's deducted from the amount of employer NI due. - Check all of the information is correct then click Finish.
- If required, to print the payment details, click Show Details, click Print then click File.
- Confirm your printer settings, click Print, click File then click Exit.
- To generate the payment file, click OK.
Depending on the banking software you are using, 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. - 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 liability Sage 50 Payroll creates two payments, one for tax and one for national insurance (NI). HMRC should accept this but if for some reason HMRC request you make a single payment, you can either: - Run the Collector of Taxes Wizard as normal, then manually amend the payment file to include a single payment with the correct payment reference.
Your payment reference is you Accounts Office Reference, preceded with P or N for the tax and NI parts of the payment, respectively. Normally, if HMRC ask you to make a single payment, you should use the payment reference that begins with P. You can find your Accounts Reference in Company > Settings > HMRC Payments - Make your payment without using the Collector of Taxes Wizard in Sage 50 Payroll, e.g. directly through your banking software or internet banking.
Use the P32 report within to help you determine the amount you need to pay. Use our handy Print and check the P32 Employer Payment Record guide to do this
HMRC notifications Get more out of your Sage 50 Payroll with HMRC notifications! Connect your HMRC account and receive notifications and messages from HMRC, as well as gaining other benefits such as: - Dedicated mailbox in Payroll to securely receive notifications directly from HMRC
- Apply tax code changes directly to your employees from received tax code notices
- Receive NI number changes and student loan notices too
Find out more in our guide to the IR Secure Mailbox. [BCB:92:Limitless - 50 Payroll - Reconcile Reports:ECB] [BCB:258:UKI - Personal content block - Paul:ECB] |