Policy News Journal - 2015-16

Intel processors prior to Pentium 4 AMD processors prior to Athlon 64, including all Socket A-based processors Some Celeron processors.

If you want to continue using the BPT, you may want to consider upgrading your current computer system.

No starter declaration received in time for a new employee’s first FPS 25 June 2015

Using an incorrect PAYE tax code and starter declaration code for new employees may cause an automated PAYE tax code to be sent which then has to be corrected, often by the employee contacting HMRC.

It is very important to have a starter declaration completed for the first Full Payment Submission (FPS).

HMRC’s June 2015 Employer Bulletin highlights that using an incorrect PAYE tax code and starter declaration code for new employees may cause an automated PAYE tax code to be sent which then has to be corrected, often by the employee contacting HMRC. Incorrect tax codes can lead to your employee paying more tax than is due so HMRC have developed a new online tool to help you or your payroll provider get your employee’s tax code and starter declaration code right first time. If it has not been at all possible to obtain a starter declaration for the new employees first FPS, then use starter declaration code C with PAYE tax code 0Tx (week/month one basis). For the next FPS, provided you have not received a P45 from the employee or P6 from HMRC, update your payroll records based on the starter declaration.

Basic PAYE Tools – guidance updated 25 June 2015

The Basic PAYE Tool User Guide has been updated with full instructions for annual reporting and for Earlier Year Updates.

Follow the links below for full details.

Basic PAYE Tools: user guide - Step-by-step help on the most common functions of Basic PAYE Tools (BPT).

 Full instructions have been added to the Basic PAYE Tool User Guide for the tasks relating to annual reporting PAYE in Real Time Information.

Basic PAYE Tools: Earlier Year Update (EYU) - Step-by-step help on sending an Earlier Year Update if you use Basic PAYE Tools (BPT) for your payroll.

 Instructions on entering the correct information have been expanded, to reduce calls into contact centres, so the advice they give has been incorporated into guidance.

Form P45 can be issued to employees electronically 2 July 2015

It has long been understood that employers could not provide Parts 1A, 2 and 3 of form P45 to a departing employee electronically. However the latest guidance from HMRC reconsiders this issue.

The 17 page June edition of Employer Bulletin includes a short article that confirms that recent legal advice has changed the long held view that only hard copy P45’s were acceptable.

“The relevant PAYE Regulation governs the electronic transmission of information to and from HMRC and not between the employer and employee. You [the employer] must however ensure that you provide P45 information to the employee in the correct form or type of document.”

CIPP Policy News Journal

25/04/2016, Page 273 of 453

Made with FlippingBook - Online magazine maker