Over the last couple of weeks you will have noticed that we have released a few updates for PAYE Plus. This has been due to the Daily changes in information for claiming Coronavirus Job Retention Scheme (CJRS) payments. We have tried to help where possible in easing the difficulties in working out how much you are able to claim when paying split weeks and/or topping up Furlough payments.
With each of these updates we have also released the PAYE Plus Changes Document with information to help use these features. Please refer to these if you are unsure – Help>PAYE Plus Changes.
Tax Rate Changes 11th May 2020
One change that requires a manual intervention by yourselves is the change to the Scottish Tax Tables which need to be applied for any payrun dated on or after 11th May 2020 – according to the Tax Tables this will apply to Week 6 and Month 2 payruns. The tables need to be changed even if you only employ UK Tax Payers.
To change the tables, go to Company > Company Setup > General Preferences > Tax/NI Rates - From the drop-down menu, select "From 11th May 2020"
If you are using the incorrect Tax Tables for the date you are trying to run the payroll, when selecting Payroll > Payrun you will receive a message box as follows:-
If [OK] Week and Month will display as -1
If this message is displayed, you have not changed the Tables correctly.
Another change that was announced from HMRC after the release of our Tax Year End Update was the increase of the Employment Allowance for Tax Year 2020/21 from £3000 to £4000. There is no change required to the software, just to be aware of the increase in the allowance.
A reminder that this Tax Year, HMRC will not carry forward from previous years the eligibility for the Employment Allowance. You will need to prepare and send an Employment Payment Summary (EPS) advising of your eligibility. To do this, go to Online Filing > Real Time Information (RTI) > Prepare Employment Payment Summary. When you select that you are eligible for Employment Allowance, you now need to select the Business Sector that applies from the list displayed. Once saved, go to Online Filing > Real Time Information (RTI) > Submit Employer Payment Summary (EPS).
Also please be aware that if you have used the Coronavirus Job Retention Scheme (CJRS) Grant then you cannot also claim Employment Allowance for the Furloughed NIC payments. HMRC states that you must not claim the Employers National Insurance through the grant scheme if you are reducing payments using Employment Allowance.