Policy Legislation Handbook

Payroll Software updates

Third Party Software for Pension Scheme Administrators 21 April 2017

As a consequence of Scottish Rate of Income Tax, Pension Scheme Administrators will be required to operate the correct rate of Relief at Source depending on whether their scheme member is a resident of Scotland or the rest of the UK from the tax year 2018/2019 onwards.

HMRC’s Software Developers Support Team (SDST) is asking for feedback:

“As a consequence of Scottish Rate of Income Tax, Pension Scheme Administrators (PSAs) will be required to operate the correct rate of Relief at Source (RAS) depending on whether their scheme member is a resident of Scotland or the rest of the UK from the tax year 2018/2019 onwards.

The current Relief at Source Process is outdated and HMRC would like to encourage PSAs to communicate with us using automated and updated methods.

To ensure PSAs use the correct rate of RAS from 2018/2019 onwards, HMRC wanted to provide an automated process where the PSAs could submit a Digital Annual Information Return which would be used to enable HMRC to provide a report to notify the correct rate of RAS for PSAs starting January 2018 to use in the following tax year.

However following an amendment to the solution design, these parts of the process are now out of scope for Digital Services.

Still in scope is a requirement for HMRC to provide the correct RAS rate for any new scheme member if they joined the scheme after we gave out the bulk RAS rate report. This will be a digital Look Up service for the PSAs to utilise involving an external API and front end microservice. HMRC would like to give 3rd Party Software Developers the opportunity to explore whether there is a market for this Look Up service and would welcome your feedback and whether you would like to register your interest for providing this functionality to your users.”

HMRC’s Software Developers Support Team can be contacted by email at sdsteam@hmrc.gsi.gov.uk .

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Request for feedback on withdrawal of Employer Alignment Submission 21 April 2017

HMRC’s Software Developers Support Team (SDST) is asking for feedback on the optimum time to decommission Employer Alignment Submission (EAS).

“The Employer Alignment Submission (EAS) was developed to align payroll data with the details held on HMRC's systems and was intended to be used only when an existing PAYE scheme with more than 250 employees first joined RTI. As the alignment process and Employer Alignment Submission is no longer relevant to Real Time Information, HMRC is intending to remove support for the EAS message at the earliest opportunity. We recognise that removing this submission immediately may have a detrimental effect on some payroll software products so we are seeking feedback to understand the optimum time to decommission this submission type.

Please contact SDS team by 31 May 2017, outlining any thoughts or concerns you may have if this message was to be withdrawn during the current 2017/18 tax year.”

HMRC’s Software Developers Support Team can be contacted by email at sdsteam@hmrc.gsi.gov.uk .

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The Chartered Institute of Payroll Professionals

Policy News Journal

cipp.org.uk

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