Don’t forget about your payroll deadlines

RT2 and PAYE payment may be due this month – we explain what you have to do.

RT2

If you are submitting your payroll returns using paper forms, your next RT2 full quarterly payment summary return should be filed by 19 January. This provides details of all payments made to employees in the period 6 October 2016 to 5 January 2017. A separate RT2 return is required for each employee.

Remember, most employers including care and support employers can claim the employment allowance in this tax year and so be exempt from paying the first £3,000 of employer’s NIC that would otherwise become due. If you have not already used the full amount of this allowance in the first two quarters of this tax year, you can claim any remaining amount – or a further portion of it – in this quarter and so reduce the payment now due to HMRC. You need to tick the relevant box on form RT5 to do this, and send it in with the RT2 form mentioned above.

For more information on the employment allowance, see our page Tax and National Insurance.

If you are unsure how to fill out the forms RT2 and/or RT5 contact HMRC’s Employers Helpline. The help guides for completing all the forms are booklets RT6 and RT7.

RT2 forms can be sent by post to:

National Insurance Contributions and Employers Office
HM Revenue and Customs
BX9 1BX
United Kingdom

PAYE payment

If you pay PAYE over to HMRC quarterly rather than monthly, payments for the three month period 6 October 2016 to 5 January 2017 should be made to avoid the risk of being charged any late payment penalties.

The deadline is 22 January, if payment is made electronically, or by 19 January if payment is made any other way, e.g. by cheque. Details of the various ways to pay are available on the GOV.UK website.

(18-01-2017)