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Correct errors in a previous tax year

Created on  | Last modified on 

Summary

How to correct a processing error in a previous tax year in Sage 50 Payroll.

Description

If you notice a mistake in a previous tax year, you need to fix it.

Roll back any periods in the current tax year, then roll back to the period that you need to correct in the previous tax year. You can correct the error and then process your payroll up to date as normal.

TIP:

Once you correct the mistake, you don't need to resubmit your end of year submission. However, you must reprint P60s for any employees affected by the correction.

Important information

You can submit changes to HMRC for the current tax year and the previous tax year using Sage 50 Payroll. If you need to amend prior to this, contact Sage technical support.

Back up your data

Before you start, it's important to back up your data.

Print historical payslips

Print historical payslips to ensure you have details of the original payments for all the periods you need to reprocess. This helps you later in the Enter the correct pay section.

Rollback

If you process any payments in the new tax year, use rollback on these payments first. Once you remove these payments with rollback, you can continue to rollback payments in the previous tax year.

Set the process date to the prior tax year and follow the rollback process until you're back to the period you need to amend.

For help with using the rollback, visit the how to use the rollback option article.

NOTE:

During the rollbacks, a message sometimes asks if you want to clear year to date values. Select No on this message if it appears.

Reprocess the prior tax year

Process the correct pay for the employees as normal, starting from the earliest period you need to reprocess. Then reprocess each period back up to date for the prior tax year.

You can use the historical payslips that you printed earlier. Make sure that you print your normal reports, including the payslips and then update records for each period.

If you normally post the nominal link to Sage Accounts, post the correct salary journals to Sage Accounts after you update records.

Notify HMRC of the changes

To let HMRC know of the changes, submit an adjustment to HMRC for a previous tax year.

NOTE:

Submit the amendment to HMRC before you start reprocessing in the next tax year.   

Update tax codes

Before you start reprocessing in the next tax year, check your employees' tax codes are correct. If required, update your employees' tax codes.

Submit an EPS for a previous tax year

To inform HMRC of values that aren't in the full payment submission (FPS), submit an employer payment summary (EPS) for a previous tax year.