In the P32 reconciliation in Step 3 of year end, in the past because I have worked within a company processing that one payroll, I have been able to check actual payments against our P32 print outs via the payment booklet and bank statements. However now that I am processing lots of different company payrolls I don't have that information to hand.
Do you ask your clients exactly how much they have paid? I asked one of my clients if they could let me know exactly how much they paid each month and this annoyed them quite a bit and they said don't you know this already as you gave me the amounts to pay every month?
I have tried to explain that the amounts I gave them every month is what I am trying to reconcile against what they actually paid.
It just seems a bit daft chasing clients to ask how much they have paid when I have given them the figure to pay. Whether or not they actually pay that amount I don't know?
Also, I think due to HMRC not accepting submissions at the minute, I am unable to see new tax codes in the secure mailbox as its doesn't show the new code or date to apply. It also doesn't show the apply button. Is anyone else having this problem?
I know that if you have the employer log-in you can see details of the payments on the HMRC website. If you are using an Agent log-in you don't have these details.
And as for the "don't you know this already as you gave me the amounts to pay every month" - that may well be true, but what if they write the cheque wrong. I had one write a cheque for £xxx.08 instead of £xxx.80 .
Also, what if they were having cash flow problems and decided to use HMRC on extended credit and didn't actually pay the amount? Good thing is RTI will stop this in future hopefully.
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Never buy black socks from a normal shop. They shaft you every time.
I have decided to ask all of our clients to provide me with a photocopy of their cheque/chaps receipt etc each month or quarter so that next year end I will have all this information to work from.
I know it seems alot to ask but it amazes me how clients expect you to work on fresh air. They are reluctant to give you the information you need to do your job properly for them.
I can't remember if you're in a practice or not Noola but if so, the accounts section may already have some of this information within client bookkeeping. Mind you, I've had clients pay Customs & Excise with the PAYE amount and send the Vat cheque to Self Assessment - all with HMRC in the narrative.
Also, some of the bookkeeping may not cover up until the end of the tax year so to reconcile correctly, you need this information somehow or other. I would not delay filing a P35 without it though.
I have had a look through our archives to see if the previous payroll clerk left any evidence of how she got these figures and there isn't any. Some of our accounts are patchy as you say and not covering the whole year.
I'm just a bit stumped to be honest as I have tried to ring clients to ask for this information but as its last year they don't have this information to hand and end up rifling through their records which I can understand is quite annoying for them.
In future do you think it would be ok to ask for photocopies of cheques etc. Having never worked in a practice before and with myself being the only person that does payroll here I'd be interested to know how other payroll companies work and what information they ask from clients.
I should mention that the "Amount already Paid" box will be disregarded if the Revenue disagree with your entry. I would not worry too much about filing the P35 with no figure at all. It won't get rejected as a result.
The amount paid figure is primarily for the client's benefit; to avoid interest and penalties. I would therefore deal with this by sending them a checklist of the 12 or 4 amounts they ought to have sent with an instruction for them to send any difference. Eventually, you will have the 12 or 4 figures to find any overpayments or disagreement with HMRC's figure.
Providing you have authority, I would file the P35 with the total you have instructed them to pay.
I worked for a client once this was when they had a yellow book, well the accountant did the year end stuff, and I know they never paid enough each month, at the end they owed thousands and had to ring up for a payment plan, then the following year they did the same! This was in the days where it was a paper year end.
