Why is my director’s National Insurance (NI) different in the final pay run of the tax year?

Directors' NI calculates differently than normal employees, as it's based on an annual threshold. This means the last pay period of the year includes a recalculation of a director's NI. This can result in the NI deduction being higher or lower than expected. This is normal and in line with HMRC legislation. Therefore there’s nothing you need to do.

For more information, read Directors' National Insurance.

Does an employee who leaves on 5 April get a P60?

No. Only employees employed on 5 April receive a P60. They’ll get a P45 instead.

Eigable employees must receive their P60s no later than 31 May.

Do I have a week 53?

If your usual pay day falls on 5 April, you have a week 53 this year.

This does not apply if you have a monthly pay cycle.

For information, read Extra pay run at year end (week 53).

How do I process an employee who starts in March but receives their first pay in April?

Enter your new employee into Sage Payroll using their P45 details including the March start date.

As you won’t be paying them until the next tax year, you don’t produce a P60 for them. Their existing P45 includes all the same figures as a P60 would in this situation.

Process them as normal in April.

How do I reprint a P60?

1. Select the Year End tab from the menu bar.
2. In the Tax year to report on drop-down, select the required year.
3. Next to step 3, select Print P60 Certificates.
4. Select View P60 for a specific employee, or View All for all your employees.
5. Using your browser options, select the Print icon.

For more information, read Print Employee P60's.

How do I email a P60?

You can't email a P60 from within payroll. You must save your P60 as a pdf document and the attach it to an email.

1. Select the Year End tab from the menu bar.
2. In the Tax year to report on drop-down, select the required year.
3. Next to step 3, select Print P60 Certificates.
4. Select View P60 for a specific employee or View All for all your employees.
5. Using your browser options, select the Download icon.

Now use your email program of choice to create a new email and attach the pdf file.

What if I’ve paid my employees in the new tax year but forgotten to update their tax codes?

PAYE tax is cumulative, meaning it will recalculate every period. Therefore you can change an employees standard tax code at any point. The next pay run will take into account what tax has been deducted so far in the tax year, and apply the new tax code. The amount of tax calculated may be higher or lower than expected while these changes take affect.

For more information, read Update an employee's tax code (P6 or P9).

 CAUTION: The only exception to this is if the employee should be on a Week 1/ Month 1 code. These tax codes aren’t cumulative, meaning they don’t look at the previous tax deducted. In this case you must edit the pay run where the employee should have been using this tax code. For more information, read Correct a completed pay run. 

When applying for Employment Allowance, what does "State aid rules don’t apply" mean?

State aid rules are likely to apply to your business if both of the following are true:

• Your business is in Northern Ireland
• Your business manufactures or sells goods or wholesale electricity

For more information, read Employment Allowance.