Thursday Dec 20, 2012

PeopleSoft Global Payroll UK - Autumn Statement Changes

Autumn Statement Changes for 2013-14

On 5th December 2012 the Chancellor of the Exchequer delivered his Autumn Statement.  Following the announcement, updated rates and thresholds were released affecting certain calculations with respect to National Insurance, PAYE and Statutory Payments.

In addition, new thresholds have been announced for the student loan calculation and for automatic enrolment into a pension scheme. The changes are effective 6th April 2013. Our Position Statement includes these legislative updates and the delivery timelines for the respective changes. We advise customers to review the position statement to keep up-to-date. The Position Statement can be found on My Oracle Support,  Document ID 1514384.1.

Real Time Information White Paper

We have just published a White Paper on  Real Time Information in the Peoplesoft Global Payroll UK product.

On 27 July 2010, Her Majesty’s Revenue & Customs (HMRC) published a discussion document entitled ‘Improving the operation of Pay As You Earn (PAYE)’.  Real Time Information (RTI) is being introduced to improve the operation of Pay As You Earn (PAYE). It is probably the biggest change to hit PAYE since PAYE was first introduced in 1944.

The changes include the collection and transmission of tax and other deductions being made to HMRC at the time a payroll is confirmed, rather than at the end of the tax year.  RTI will ensure that the Government knows in real-time how much tax and National Insurance is due from each employer.

Employee details will be far more accurate and up-to-date. Tax codes will also be issued quicker meaning that tax should be more accurate on a month-to-month basis than is currently the case, resulting in fewer refunds by HMRC. In addition, through RTI, any false new starter details provided by the employee will be automatically highlighted. Any second jobs not declared will also be flagged.

With instant access to hours worked and statutory information about employees being submitted to HMRC at the start of their employment, it will also be easier to calculate how much people are due from a universal tax credit point of view and enable the Government to clamp down on benefit fraud.

RTI generate the following output files to HMRC based on 2012-13 MIG specification:                                        

Employer Alignment Submission (EAS)
Full Payment Submission (FPS)
Employer Payment Summary (EPS)
National Insurance Number Verification Request (NVR)

and the following input file:                                                        

NINO Verification Reply (NVREP)

The White Paper, available on My Oracle Support (Document ID 1514065.10,  provides valuable information for UK based employers (including UK subsidiaries of overseas organizations), who plan to implement RTI in PeopleSoft Global Payroll UK to comply with HMRC regulation.

Note -

MIG file specification that is released by HMRC for 2013 – 14 shall be delivered separately along with split scheme file submissions. Changes to RTI file specification 2013-14 shall be included in the White Paper.

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This blog is dedicated to topics focused on legislative updates to PeopleSoft Applications including Human Capital Management and Financials.

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