Update for PAYE year-end 2015 and Payroll Changes for 2015-2016

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Issue dated 10 June 2015
Update for PAYE year-end 2015 and Payroll Changes for 2015-2016
PAYE changes for 2015-16 include new rates and thresholds, in particular new National Insurance tables
for employees who are aged under 21. There are some name changes to statutory paternity pay. PAYE
year-end close declarations are no longer required (this includes for the year end 2015).
This short user guide explains where the impact of these changes will be seen as well as highlighting the
process for the final FPS and final EPS of 2014-15.
Final FPS and/or EPS of 2014-15.......................................................................................................................................... 2
Earlier Year Update (EYU) ..................................................................................................................................................... 3
Additional National Insurance Tables in 2015-16 ............................................................................................................ 3
Statutory Pay - Name Changes ............................................................................................................................................ 5
Paternity pay ........................................................................................................................................................................ 5
EPS (Employer Payment Summary) .................................................................................................................................... 5
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Issue dated 10 June 2015
Final FPS and/or EPS of 2014-15
For the final FPS of a payroll group (monthly, weekly etc.) for 2014-15 tick the Final Submission box and
then confirm the Final Submission Reason. For year-end of course, tick Year End. Final Submission
Declarations are no-longer necessary and that tab has been withdrawn.
Note for those that have selected to Automatically File FPS the final declaration will NOT be included. A
final EPS must be filed. The final EPS has the same Final Submission box to tick also with no declarations
necessary.
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Issue dated 10 June 2015
Earlier Year Update (EYU)
UK law requires that the figures for pay, tax, National Insurance and the employee details that are
reported to HM Revenue & Customs (HMRC) on your Full Payment Submissions (FPS) are accurate. But
sometimes mistakes can happen. If you have reported incorrect information on an FPS or Employer
Payment Summary (EPS) it must corrected.
To correct mistakes made in 2014-15 PAYE tax year you might need to send an Earlier Year Update (EYU).
Users of Liberty Accounts payroll will have access to EYU submissions for the 2014/15-payroll year once
the final payroll of 2014/15 has been run and the year closed.
Please refer to Payroll RTYI filing -­‐EYU (Earlier Year Update), correction of errors user guide for more
information.
Additional National Insurance Tables in 2015-16
Additional National Insurance tables abolish the secondary (employers) contribution for all employees who
are aged under 21. The main new tables are M and I.
New Table M is the equivalent of Table A (Not-contracted out standard rate) and will apply to employees
aged under 21.
New Table I is the equivalent of Table D (Contracted out standard rate) and applies to employees aged
under 21.
Once an initial NI tables has been set for an employee, the system will subsequently apply the correct
tables provided the date of birth has been entered.
Obviously to be correct the date of birth must be accurate. The system now requires that a user indicate
that they have validated a date of birth.
The date of birth is entered on the employee details record.
Payroll à Manage Employees à Employee à Personal Details tab Page 3 of 7
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Issue dated 10 June 2015
The date of birth may be stored without validation; however when a payroll is attempted where the date
would impact which NI table to use the system displays a warning.
The payroll run may not be progressed until the relevant date of birth is validated.
Validate on the screen above or from the employee payroll data screen
Payroll à Manage Employees à Payroll/Tax à HMRC Codes & Tables tab Page 4 of 7
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Issue dated 10 June 2015
Statutory Pay - Name Changes
Paternity pay
HMRC have changed the naming for Statutory Paternity Pay items.
OSPP (Ordinary Statutory Paternity Pay) has been changed to SPP (statutory Paternity Pay) and
ASPP (Additional Statutory Paternity Pay) has been changed to ShPP (Shared Paternity Pay)
The name changes are reflected in the pay element types that are selected when a new global pay
element is selected.
EPS (Employer Payment Summary)
When preparing to file an EPS (Employer Payment Summary) the screens show some additional
information.
On the Submission Details tab, if the Claim Employment Allowance flag is currently ticked (The allowance is
being claimed) on the Business Payroll Configuration screen then this status is confirmed on the tab.
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Where notification is being given of No Payments for Period or Period of Inactivity ticking the boxes opens
up From and To date Fields that must be completed.
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Issue dated 10 June 2015
On the Recoverable Amounts YTD tab the user may specify for which tax month the EPS credit should be
allocated.
This field is optional, so if a selection is not supplied the credit is allocated based upon the submission
date.
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