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HMRC's Basic PAYE Tools

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HMRC's Basic PAYE Tools


Postby shares4me2 » March 7th, 2020, 11:54 am

Hi All,
I hope this is the best place to ask this question.
My wife & I are the sole directors of a very small limited company with no employees other than us. We pay ourselves only the minimum for no tax and pay the rest of the annual profits if any, as a company contribution to our SIPP's. As directors are employees we obviously have to operate a PAYE scheme. We pay ourselves annually so make only one submission per year which has to be filed online on or before payment under RTI legislation.
When RTI started we found that the HMRC's free Basic PAYE Tools software couldn't handle an annual submission but found BrightPay had a free version for a limited number of employees like us. I must say it is a brilliant program. Unfortunately from the 2019-20 tax year, they are now charging £50 + vat plus the same again for the end of year instructions. £120 for ten minutes of use a year, sounds rather a lot, but of course, I understand that they need to make a profit.
I have downloaded this year's version of HMRC's Basic PAYE Tools which now appears to have an annual filing option. My question is: has anybody out there use it for annual filing as in my situation without any problems?
Thanks for any help.

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Re: HMRC's Basic PAYE Tools


Postby mearnsfool » March 16th, 2020, 10:28 pm

What is your problem.

You have downloaded the software.

You fill in your company and directors details and click the annual payment tab.

You do a backup from the HMRC software menu.

You then put in the directors annual salary circa £8,500 each.

Does the software take the instructions and are the amount of NI and Tax to pay correct.

If no, delete the software without sending in the data to HMRC.

If yes, send the data to HMRC with the final submission of the year clicked, maybe take 20 minutes.

Backup again from within the software.

Open software again in April or do not send the submission in to then and print off a P60 for each of you as the software will update then to allow the P60 to be printed.

Do a backup again from within the software.

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Re: HMRC's Basic PAYE Tools


Postby shares4me2 » March 17th, 2020, 10:14 am

mearnsfool wrote:What is your problem.

Thanks very much for your reply.
My problem is; that when I first had to submit via RTI I used the HMRC software which appeared to work ok but then I started getting massive demands from HMRC for many £1,000's and threats of court action. I finally had to get my MP involved and finally got HMRC to admit that firstly they didn't understand their own software and that they didn't think it was capable of handling annual returns so I should not use it. I even had one of their senior helpline staff tell me that annual salary payments were illegal!
So my question was whether anybody was now after a few years of development, actually using PAYE Tools to successfully submit annual returns.
Hopefully, my question is now academic as I have found Shape Payroll ( which has a free version which they seem happy to support and their developer has assured me that their annual filing does work. He even replied to an email out of working hours.
Thanks again for your answer.

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