How do I reconcile my payroll at the tax year end?

Modified on Tue, 10 Dec at 2:29 PM

The Real Time Information (RTI) process has eliminated the need for a year-end reconciliation as you will have been reconciling and paying over exactly what is determined via the FPS and EPS submissions.

Within Cintra iQ, the system the reconciliation is between the physical payments recorded to both employees and HMRC and the actual payments made.

If you are using Cintra iQ’s BACS processing to make payments then the room for error is eliminated.

If you are not using Cintra iQ’s BACS processing tool for paying HMRC, you will have reconciled period by period as you moved through the tax year.

When you use the Cintra iQ functionality to pay HMRC after you have closed a period, Cintra iQ automatically produces the P32 Report and a detailed breakdown of all records included in the run.

Note:

If you don’t make payments to HM Revenue & Customs through Cintra iQ, you still need to use this functionality to produce the EPS and check that the P32 report balances with you internal payment records.

When should I produce the payroll analysis summary report?

The Payroll Analysis Summary Report, which is the central control document in Cintra iQ, should be produced at the close of each period. This report should be used to check that

the totals paid out agree with the amounts actually paid.

How should I make manual payments?

If you operate any manual process to put figures into a payment system to raise payment to HMRC, it is always possible that the figures may be transposed incorrectly, or the wrong figures may be collected. e.g. Maternity Pay – taking the gross value rather than the value net of any deductions (rebates etc.).

Important:

It is advised that you mimic payment to HMRC using Cintra iQ’s payment functionality so that you can produce the P32 report. This should be reconciled to your payments system on a regular basis.