Payroll RTI filing – EYU (Earlier Year Update

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Issue dated 31 March 2015
Payroll RTI filing – EYU (Earlier Year Update), correction of errors
UK law requires that the figures for pay, tax, National Insurance and the employee details that are
reported to HM Revenue & Customs (HMRC) on your Full Payment Submissions (FPS) are accurate. But
sometimes mistakes can happen. If you have reported incorrect information on an FPS or Employer
Payment Summary (EPS) it must corrected.
This guide will show you what you need to do to correct mistakes made in the previous PAYE tax year and
when you might need to send an Earlier Year Update (EYU).
Users of Liberty Accounts payroll will have access to EYU submissions for the 2014/15 payroll year once
the final payroll of 2014/15 has been run and the year closed (although not necessary reported) and the
Payroll rolled over to 2015/16
If you are unsure as to the necessary corrections we strongly recommend you take appropriate
professional advice.
Errors discovered before the 19th April following the end of the tax year ................................................1
FPS Errors discovered on or after the 20th April following the end of the tax year ..............................2
EPS Errors discovered on or after the 20th April following the end of the tax year ..............................2
Processing an EYU (Earlier Year Update) submission...................................................................................2
Entering the Updates Required ........................................................................................................................... 3
Submission Details Tab ..................................................................................................................................................... 3
Payment Details Tab .......................................................................................................................................................... 4
NI #1, 2 ,3, 4 Tabs ................................................................................................................................................................ 4
User Feedback Tab ............................................................................................................................................................ 5
Submitting an EYU.............................................................................................................................................................. 5
Unreported Leaver ............................................................................................................................................................. 5
Examples of Updates .............................................................................................................................................6
Example 1 – pay & tax update ......................................................................................................................................... 6
Example 2 – national Insurance category error ......................................................................................................... 6
Errors discovered before the 19th April following the end of the tax year
If you discover, on or before 19 April following the end of the tax year, that you have not submitted an FPS
or you have reported incorrect year to date figures, you should submit an additional FPS with corrected
year to date figures or an EPS (Employer Payment Summary).
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See Running a Payroll user guide for more information on completing and submitting an FPS or EPS
FPS Errors discovered on or after the 20th April following the end of the tax year
If you discover the issue on or after 20 April in the following tax year, you should submit an EYU. You can
submit an EYU to correct FPS information for up to six years after you filed your original FPS.
You can only use an EYU for the tax years where you operated PAYE in real time, not if you filed P35 and
P14’s.
Note amended forms P35 and P14 can be filed online for up to six years after the original forms were filed.
EPS Errors discovered on or after the 20th April following the end of the tax year
If you have reported incorrect information on an EPS in a previous tax year, you must submit another EPS
to report the correct total year to date figures for all recovered payments within that tax year. You can
submit an EPS for up to six years after you filed your original EPS.
Processing an EYU (Earlier Year Update) submission
Once the current year has been closed the EYU facility will be available for amending that closed year.
Navigate to RTI Fling under the Payroll menu.
Payroll à Government Gateway à RTI Filing A screen offering RTI filing options is displayed. By definition an EYU is for a prior year so select the year
to which the EYU is associated from the PAYE Year dropdown and tick EYU. In the example the new
current year is the 2014/15 so the EYU is to apply to 2013/14.
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Click Add EYU to prepare an EYU.
A multi-tabbed screen is displayed to allow a user to enter the updates required.
Entering the Updates Required
EYU should only record the difference between what you had originally submitted on the final FPS and
what the figure should be.
Submission Details Tab
Select Test Submission if
required. Confirm or select
the Sender Classification and
select the Employee impacted by the EYU.
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Payment Details Tab
Use this tab to amend
payment and tax details.
NI #1, 2 ,3, 4 Tabs
These tabs are used to
correct national insurance
errors. You may enter up to
four category letters for one
employee.
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User Feedback Tab
Feedback from the System or HMRC on the process will be reported in this tab.
Submitting an EYU
When the necessary updates have been entered click Submit to start the filing process. Note, if the user
has previously filed FPS’s, the necessary credentials will have already been entered, but if they need to be
entered navigate to Government Gateway Credentials and enter them.
Entity Nameà Government Gateway Credentials The usual RTI filing control screen is presented.
When ready click Send to file the submission, dismissing the warning. If the local validation is OK the
status is shown as Queued. For feedback on process click View and go to User Feedback tab. The user will
receive an email detailing success or failure. In the latter case, correct the issues and re-send.
Unreported Leaver
In the situation where a leaver has not been reported, firstly indicate that the employee should be
processed as a leaver and enter the date. Do this by navigating to the particular employee in the manage
employee list.
Payroll à Manage Employees à Payroll/Tax You will need to know the PAYE tax code at the time they left. This may be obtained from the P11 report.
The PAYE year 2014/15 will need to be closed for the EYU to be processed.
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Now navigate to the EYU screen.
Payroll à Government Gateway à RTI Filing Change the PAYE year in the dropdown to 2014/15 and select the EYU button. Click the Add EYU.
Now complete the EYU by selecting the employee and providing the Tax Code at the time of leaving.
Note you need to provide the tax code because for most uses of the EYU the tax code held is likely to be
different to that held on the system at the time of filing. The leaving date is picked up in background.
Note it is important to recognise that the EYU corrects the figures sent to HMRC, it does NOT adjust
the accounting figures stored in Liberty Accounts because these were as a result of payrolls
processed. The user may therefore need to make appropriate accounting adjustments depending on
the updates made. It is recommended that appropriate professional advice is sort if you are unsure.
Examples of Updates
Example 1 – pay & tax update
For example, if you recorded £100 too little pay on an employee's payroll record, the EYU should show
'+£100'. You can only amend year to date data on an EYU.
If you need to submit more than one EYU, each submission must only show the amount of the amendment
from the last figures submitted.
For example, if you submit a year to date figure of £10,000 for pay on your last FPS for the year, then
realise that the figure should have been £12,000, you will submit an EYU to show '+£2,000'. If you then
realise that the actual figure should have been £11,500, you must then submit a second EYU which will
show '-£500'.
Example 2 – national Insurance category error
An employee has been reported as subject to Table A NIC’s for the whole year but should have been
subject to Table C.
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Using the P11 figures for that employee reverse the year to date figures as reported using negative
amounts.
Then in the next tab enter figures, as they should have been.
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