The purpose of this article is to guide you through the steps required to perform the end of year procedure in Flexipay. Please follow the steps as described to ensure you do this process correctly.
The last submission of the tax year that you perform must have ‘this is the last submission of the tax year’ ticked. You can enable this selection in two different areas, the Employer Payment Summary (EPS), or the last Full Payment submission (FPS) if you do not require an EPS. These can be accessed from the Month end and the Payroll cycle menus on the Flexipay toolbar respectively.
Note: If you incorrectly state it is the last submission within an FPS submission, then it cannot be undone within Flexipay and you will need to contact HMRC.
It is recommended that you use the EPS method for the following reasons:
Below are examples of where the checkboxes are in each dialogue box:
To print out the RTI amendments, navigate to the Year-end menu in the Flexipay toolbar, and click Print RTI amendments.
If you have linked companies (for example more than 1 company that shares the same PAYE reference) and have not performed an EPS during tax year 2021, then you should ensure that all the required companies are correctly linked within Flexipay.
This can be confirmed by selecting Maintain Details from the Company menu in Flexipay’s toolbar. You may then modify the required company. In the RTI submission tab (located among the tabs at the top of the window) the Split companies section should be completed and set up within the Linked companies tab.
All payrolls must be updated before you can perform the Year-end for any company with employees, including employees that have left, in the pay group. This includes any other payroll directories which share the same PAYE number – you can find details on how to change directories in Section 4 of ‘Flexipay Copy Year End'.
Note: Remember to take a backup of the data before updating the payroll as this may be required if there are any corrections to do.
You can update the payroll by pressing the Update payroll button in Flexipay.
Next, you must run the Year-end check report from the Year-end menu in Flexipay.
Make sure there are no errors and that you review any warnings that appear. It is imperative that you correct any of the errors found. If you have been running the month-end check regularly throughout the year, then this should minimise the amount of errors that need to be corrected.
At this point, make sure you have followed the instructions in ‘Flexipay Copy Year-End Instructions’ to create a working copy of the previous year’s data before processing the first periods of the new 2022/23 tax year. You will need to refer back to them.
If you didn’t send your final submission as an FPS, then send your final EPS submission and ensure This is the last submission of the tax year is ticked (as described earlier). This should be performed from your Year-end copy of the data.
Run the month-end HMRC returns for month 12 and make your payment to HMRC.
You will need to print P60’s for all employees who are still employed by you at the end of the 2021/22 tax year. You must make sure a P60 copy is provided to each employee by the deadline of 31st May, a date that has been set out by HMRC. This should be performed from your Year-end copy of the data.
To generate a P60, select P60 from the Year-end menu in the Flexipay toolbar:
If your P60s do not print out correctly, here are some common problems:
To start the new tax year, the company year-end and employee year-end processes must both be run. This should be done on the original data and not the copy. Details on how to switch data is provided in ‘Flexipay Copy Year End instructions’.
The following procedures should only be performed if you have taken a Year-end copy as described in ‘DOC C’. Preparing the live data to process the new tax year involves zeroing the employee year-to-date totals that are essential for printing the P60s for employees.
Note: The company year-end must be performed for every company, either by selecting ‘All’ companies when prompted or by repeating the procedure for each company.
Select the Year end menu on the Flexipay toolbar and then select Company year end from the dropdown menu. This will open the following form:
Ensure that the correct tax year (2021) is selected in the box at the top. If you have not taken a year-end data copy, make sure you do this now else it will be lost. Click Yes to proceed, which will open the following screen:
This gives you the option of updating your small employer status. Click Yes to allow Flexipay to determine each company’s Small employer status, or No to omit this process. This will be repeated for the Paying apprentice levy option. Again, choose Yes or No depending on your choice.
Note: if you have any split companies, the small employer status may be assessed incorrectly. See the scenarios in outlined later in this document to determine if this may be the case.
After you pick Yes or No, a form will be displayed. This allows the user to choose to print, display, email or create a PDF of the copy year-end report:
Note: selecting cancel will abort the whole process and you will need to repeat the year-end procedure from the start.
The next screen allows the user to select which companies to be processed. Choose list view to display the companies, or simply click all if you want all companies to be processed. You may select any combination of companies that you wish, but keep in mind that you need backups of all data for any companies that you process.
The company year-end report will produce the following:
Note: You must ensure that allowance has been set correctly for split companies, as this is not allocated automatically.
The following scenarios may help you decide how best to approach the year-end procedure:
1. You have a single company to process:
Flexipay for your part of the company exceeded £3million – Yes to both questions. Flexipay sets ‘N’ for small employer and ‘Y’ for apprentice levy.
Flexipay is less than small employer threshold – either:
As of version 2.49, tax code uplifts are now done automatically during the employee year end procedure.
Now would be a good opportunity to clear out any historical data in Flexipay that you no longer require. Primarily, it is a good idea to delete old employees.
To do this, click on the Year end menu in the Flexipay toolbar, then choose the Delete old employees option. This will permanently delete old employees who have left before the date you choose in the date field, which you may choose by clicking the ‘…’ button. Click OK once you are happy with your selection.
If any amendments are required for the old tax year after April 19th you will not be able to send an FPS and will instead need to perform an RTI – Year-end Correction FPS submission. This is used to tell HMRC if you’ve repaid or deducted the balance from your employee(s).
Please note that this must be done from the year end copy of the data that you were previously advised to make.
Once you have applied the required amendment to the employee(s) within Flexipay, run the EYU check report from the Year end menu in the Flexipay toolbar.
You need to ensure that there are no errors and it is advised that you review any warnings.
Once cleared, you can then perform an EYU submission by selecting RTI – Year-end correction FPS from the same menu.
Flexipay will then calculate the difference between what you originally deducted and the correct amount for the amendments, them submit this to HMRC.