Payroll Upgrade 2008
We have recently had details from Pegasus of their plans for the Payroll Upgrade for 2008. As usual there will be two phases to the project:
Phase 1 covers the legislative changes needed to complete the 2007/08 Tax Year and should be available by the end of January 2008.
Phase 2 will cover the Budget changes and will be implemented in May 2008.
Statutory Changes for 2008
PAYE 10% Bandwidth: The starting rate and 10% bandwidth of PAYE will no longer be applicable from April 2008. At the same time, the basic rate of tax will be reduced from 22% to 20%.
P35 Summary: There are some minor wording changes on the P35 summary plus some
validation changes. These will also be reflected in the Online Filing Manager EOY
wizard.
Other Changes
P14 and P60 forms: The layout/format of these forms has not changed; however, you will still need to order
new stationery with the correct tax year printed on it.
Magnetic Media Returns: The output file format for EOY returns by magnetic media has not changed this year.
Student Loans: The “42 day lead time” with respect to the recovery of Student Loans will be removed
from April 2008.
In-Year Form Filing: The deadline for mandatory online filing of in-year forms (P45-1,
P45-3, P46) has been postponed by HMRC till April 2009. However, Pegasus have
made changes to the software as the format and validation changes required by HMRC
still have to be applied to ensure that the Online Filing Manager can continue to file
correctly. These changes will be apparent on the To Date form in Payroll Processing
(Opera II).
Other Enhancements
Leave Period Identification: There will be an extra spin-box on the Leaver’s Form to
identify the Leave Period, allowing P45 Reports to be produced for a previous period
as required.
NI Category ‘X’: The audit report produced by the End of Year Cleardown will include
information on employees who have been processed with an NI category letter of ‘X’.
More detail on the above changes will be made available within the documentation that is provided with the Payroll Upgrade and further information on the statutory changes can be found at www.hmrc.gov.uk
We will be contacting you in January as usual to establish appropriate times for installing the upgrade and implementing the changes in time for the end of the 2007/08 Tax Year. Please keep an eye open for the usual faxback forms and web-based forms.