axis payroll User Guide Supplement March 2019 |
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1. What's New? |
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1.1 Welsh Rate of Income Tax |
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With effect from 6 April 2019, Welsh taxpayers begin paying income tax using Welsh rates of Income Tax. During February and March 2019 HMRC are issuing a P9 Notice of coding for all employees that HMRC has identified as Welsh residents. The new codes for Welsh Taxpayers will begin with a 'C'. Employers must ensure they apply the C codes received from HMRC to identify employees who are Welsh taxpayers. Welsh taxpayers will be identified via address information that is held by the HMRC; it is the employee’s responsibility to update HMRC with address changes to ensure the tax they pay is correct. If an employer is provided with a P45 with a Welsh tax code they will need to follow the current process when taking on a new employee. If a new starter does not provide a P45, or an employer is unsure what tax code to use, an employer can use the rest of the UK tax code and rate. HMRC will inform an employer if the tax code needs to be changed. Welsh rates do not need to be displayed separately on the P60 or payslips, but these documents should show the Welsh tax code. Further information is available on the Welsh Rate of Income Tax at https://www.gov.uk/welsh-income-tax |
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1.2 Postgraduate Loan Recovery |
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The Department for Education has launched a new loan product for England and Wales called Postgraduate Loan (PGL). If your employee has a PGL, HMRC will send you a
You will collect PGL deductions through the Pay As You Earn (PAYE) process. The earliest you can start taking PGL deductions for your employee is 6 April 2019. You may need to collect a Student Loan plan type 1 or 2 concurrently with PGL. HMRC will continue to send you an SL1 for a Student Loan which will detail the correct plan type to use. When you enter a new employee into axis payroll, the Starter Declaration now includes a new section for to indicate that the starter is subject to Postgraduate Loan Recovery. Enter Student Loan Details has been extended to additionally allow the recording of Postgraduate loan deductions.. HMRC suggest that you should ask your employee to check their loan and plan type information online at www.studentloanrepayment.co.uk where there is any doubt.
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1.3 Payrolling Benefits in Kind |
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From April 2016 the government introduced a voluntary framework to allow you to payroll most Benefits in Kind (BiKs). If you want to payroll your BiKs for the tax year beginning 6 April 2019, you must have registered using the online Payrolling Benefits in Kind (PBIK) service. One of the biggest benefits of payrolling in line with the framework is that you do not need to submit P11Ds for payrolled BiKs. axis payroll supports a “Benefit in Kind” pay component which will be included in taxable pay but excluded from amount paid. axis payroll also allows for the recording of employee car details on the employee record and submitting this information in FPS submissions. Further information on payrolling on BiK’s is available at https://www.gov.uk/guidance/paying-your-employees-expenses-and-benefits-through-your-payroll |
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1.4 Disguised Remuneration Loan Charge |
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If you are required to declare a Disguised Remuneration Loan Charge in respect of outstanding employee or directors loan balances at 5th April 2019, you will need to download and install updated software prior to running your final pay period for the affected employee(s). The updated software will alllow you to create a new pay component for processing the balance and flag the component as a 'Disguised Remuneration'.
For further information regarding Disguised Remuneration Loan Charge, please refer to Employer Bulletin: February 2019 |
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If you are an eligible employer, the employment allowance is remaining at £3,000 a year from April 2019. If you aready claim the allowance and will continue to claim you just need to continue to make the appropriate deductions from the amount of Class1 secondary National Insurance Contributions that you would have paid to HMRC.
If you have been eligible to claim the 'Employment Allowance' and have not yet submitted your claim for 2018-2019, you will need to go to 'Amend Employer Details' for the payroll data set through which you wish to claim the allowance and tick the 'Employment Allowance' option. Note: if you are operating more than one payroll data set, you should only claim through one data set.
Your final Calculate Monthly Remittance for the year will then include your claim for the allowance. You will then need to set 'Employment Allowance claim' to 'Yes' when submitting your final end of year EPS to advise HMRC that you are making the claim.
The information contained in this Payroll User Guide Supplement applies to axis payroll 2014, axis payroll 2016 and axis payroll 2018 users.
Note: no payroll year end update will be provided for axis payroll 2014 for 2019/2020. All axis payroll customers are entitled to upgrade to the current version and should contact theoir account manager to discuss upgrade options.
Unless you need to process Disguised Remuneration Loan Charges for 5th April 2019, you do not need to install this update until you have completed the final period of the year, however it is safe to install the update at any time.
In order to allocate employees to the correct NI category, you must ensure that you hold the correct date of birth against each active employee record.
In order for HMRC to apply Scottish Rate of Income Tax and Welsh Rate of Income Tax correctly, it is important that employee addresses are kept up to date.
You are advised to read the February 2019 Issue of the Employer Bulletin which is available for download from the GOV.UK website.
Ensure you have ordered the required year end stationery.
Supplies are available free of charge from HM Revenue & Customs - please refer to the Employer Orderline
The available P60 stationery formats are:
NOTE. Since new copies of the stationery are issued every tax year, you should only order sufficient quantities to cover this year.
P45 forms for leavers are unchanged.
Supplies are available free of charge from HM Revenue & Customs Employer Orderline
The supported formats are:
The 2018 / 2019 tax year includes a Week 53 for weekly payrolls with a Friday Pay Date, i.e. Friday 5th April 2019.
For weekly payrolls with a Wednesday Pay Date, 3rd April will be Week 52, 10th April is Week 1 of the new tax year.
For weekly payrolls with a Thursday Pay Date, 4th April will be Week 52, 11th April is Week 1 of the new tax year.
Twoweekly and Fourweekly payrolls will have a Period 27 (Week 54) / Period 14 (Week 56) if a Pay Date falls on Friday 5th April.
The update must be installed on your axis payroll software server. This will usually be your network server, but a number of axis payroll users run their payrolls on a stand-alone PC.
Customers using axis payroll will download the update from our website.
To download the update:
Follow the Installation Procedure detailed below.
Please note that you need only install this update once for all axis Payrolls providing that all payrolls reside on the same machine. Where payrolls are 'switched' between 'home' and 'office', then each such machine requires the update.
Ensure that a full backup of the system is taken. Use the 'Copy Data to Full Backup' function to create an archive backup of the payroll data on to removable media. We also strongly recommend that a full backup of the axis programs and data is made.
You should run the installation procedure from the axis payroll server.
- You should be logged onto the axis payroll server. Elevation will be required.
- Ensure that all axis users are out of the system. You can do this by clicking on the System Console/User Status Enquiry button, found on the axis payroll Scheduler toolbar. Then come out of the system yourself
- If installing a downloaded version of the software, the file needs to be on the axis server and so may need to be copied to the server either directly over the network or via a form of removable media if it has been downloaded on another workstation. The executable can then be run to install the update files.
- If installing from removable media, insert the update device into the server. The device should auto-run. If it does not, please call for assistance
- Click on Install/Upgrade axis diplomat (2014, 2016 or 2018) System.
- Click Upgrade Existing System.
- If you are continuing to use axis payroll 2014 or axis payroll 2016, an information screen will appear:
Confirm that you wish to continue- Confirm that you accept the terms of the license agreement:
- Select the drive that contains your axis payroll system. This will normally be the default drive presented:
- The installation procedure will now check that there are still no users in the system, check for sufficient disk space and then ask you to confirm that you wish to update the axis diplomat Software.
- The installation procedure will continue and update the axis payroll software.
- Once the installation has completed, you will receive a ‘Setup Completed Successfully’ message, click ‘OK’ and then ‘Cancel’ out of the menus.
- Finally, whilst you are still logged on to the axis server, you should enter each of your axis payroll systems in turn and perform any updates requested.
- This completes the installation procedure. Once the installation has completed, you will receive a ‘Setup Completed Successfully’ message, click ‘OK’ and then ‘Cancel’ out of the menus.
Ensure that you have installed your axis payroll Legislation Update before proceeding with the year end procedures. Please ensure that a FULL security backup is taken of the payroll data BEFORE installing the axis payroll Legislation Update and again before running the last function ‘Year End Processing’.
You also need to ensure that you have:
Please note: HMRC accept the 'final submission for the year flag' in either the last submitted FPS file for the year or in the final EPS file. axis payroll only supports submission of this flag in the EPS and the file is automatically flagged in the background as the final submission for the year. The 'end of year questions and declaration' are also no longer required and so have been removed from the summary. Refer to http://www.gov.uk/payroll-annual-reporting/send-your-final-payroll-report for further information.
The system will produce a 132 column plain paper report detailing the total amounts accumulated for each pay/deduction component, total PAYE and total NIC. Please read the associated help documentation for further details.
The system will produce a 132 column plain paper report (based on the NIC section of a P11) detailing N.I. Liable Earnings and N.I. Contributions for each employee on a period by period basis for the frequency selected.
We would advise that the report is kept for a minimum of 3 years, in case of query from HM Revenue & Customs.
Please read the associated help documentation for further details.
The system will produce a 132 column plain paper report (based on the PAYE section of a P11) detailing Taxable Earnings and Tax Paid for each employee on a period by period basis for the frequency selected.
We would advise that the report is kept for a minimum of 3 years, in case of query from HM Revenue & Customs.
Please read the associated help documentation for further details.
The system will produce a 132 column plain paper report with one page per employee showing each day of sickness absence, maternity leave, etc, taken during the year. Both April 2013 and April 2014 are printed for information.
Please read the associated help documentation for further details.
The system will produce an 80 column employee listing of NIC and tax deductions followed by a summary of payments for the year.
We would advise that a copy of the report is kept on file for a minimum of 3 years in case of query from HM Revenue & Customs.
Please read the associated help documentation for further details.
A P60 must be printed and given to each employee still employed on 5th April.
Please refer to the Introduction of this supplement for further information on how to order stationery and which formats are available.
The documents are printed in surname order.
Please read the associated help documentation for further details.
You must ensure that you have successfully submitted an RTI Employer Payment Submission file if this is your only payroll frequency and payroll data set for the employer PAYE reference or is the payroll frequency/payroll data set from which you have chosen to submit combined figures before proceeding to use the Year End Processing function. You will need to submit a final year end EPS even if you have no statutory payments to recover in order to advise HMRC that you are making the final submission for the year.
Please note: HMRC accept the 'final submission for the year flag' in either the last submitted FPS file for the year or in the final EPS file. axis payroll only supports submission of this flag in the EPS and the file is automatically flagged in the background as the final submission for the year. Refer to http://www.gov.uk/payroll-annual-reporting/send-your-final-payroll-report for further information.
You should now take a Year End Security Copy of all axis payroll Data using the 'Copy Data to Full Backup' function and selecting the 'Retain backup indefinitely' and 'Archive backup' options.
We would advise you to keep the backup archive for a minimum of 3 years in case of query from HM Revenue & Customs.
This is also important in case there is a problem with your end of year returns.
The system asks for confirmation that a security back up has been taken and asks you to confirm that you have read and understood this guide before proceeding.
The process then clears all accumulators to zero for the new tax year.
The previous years’ details are retained in the Payroll Payment Archive File.
The increase of 65 will be automatically applied to L suffix tax codes for all active employees, e.g. 1185L will be amended to 1250L.
The corresponding increase of 71 and 59 will be applied to M and N suffix tax codes.
Re-enter your payroll system.
The Employment Allowance remains at £3000 per year from 6th April 2019.
If you were eligible for and claimed Employment Allowance for the tax year ending 5th April 2019 no action is required to claim from 6th April 2019.
If you have become newly eligible to claim the 'Employment Allowance' you will need to go to 'Amend Employer Details' for the payroll data set through which you wish to claim the allowance and tick the 'Employment Allowance' option. Note: if you are operating more than one payroll data set, you should only claim through one data set. Calculate Monthly Remittance will then include your claim for the allowance. You will need to create and submit an RTI Employer Payment Summary in the first month of the tax year to advise HMRC that you are claiming the allowance setting the 'Employment Allowance claim' option to 'Yes'.
The standard personal allowance increases from £11,850 to £12,500. This applies to England and Northern Ireland, Scotland and Wales.
The code for emergency use with effect from 6th April 2019 changes accordingly to 1250L
There is a general uplift of L suffix tax codes by 65 and a corresponding uplift to M and N suffix tax codes by 71 and 59 respectively. The increment is applied automatically to all existing employees by the 'Year End Processing' routine.
Where you receive a code notification for an individual employee to be operated from 6th April 2019 (on Form P9(T) or via your online HMRC account), the specified code must be entered after the year end has been run.
Refer to form P9X(2019) for further details.
Calculate Net Pay will check the tax year / pay date and automatically apply the following Class 1 earnings thresholds effective from 6th April 2019:
| Weekly | Monthly | Yearly | |
| Lower Earnings Limit | £118.00 | £512.00 | £6,136.00 |
| Primary Threshold | £166.00 | £719.00 | £8,632.00 |
| Secondary Threshold | £166.00 | £719.00 | £8,632.00 |
| Upper Secondary Threshold (Under 21) (UST) | £962.00 | £4,167.00 | £50,000.00 |
| Apprentice Upper Secondary Threshold (Apprentice Under 25) (AUST) | £962.00 | £4,167.00 | £50,000.00 |
| Upper Earnings Limit | £962.00 | £4,167.00 | £50,000.00 |
The Employee and Employer Class 1 NI contribution rates for NIC categories A, B, C, H, J, M and Z remain unchanged.
Calculate Gross Pay will continue to check employees in the 'under 21' and 'under 25' N.I. categories and amend their category to a standard category if that employee has achieved the age of 21 or 25 by the pay date of the period being run.
Note: The 'Print Payroll Parameters' function, accessed from the 'Supervisor Functions' menu, may be used to produce a report of the rates applicable to each NI category and band of earnings.
The weekly rate increases to £94.25.
The appropriate daily rate is determined by the number of qualifying days.
Eg. The daily rate for an employee with five qualifying days is £18.85.
Statutory Maternity Pay (SMP) is paid at 90% of the employee's average weekly earnings for the first six weeks. The standard weekly rate for the remaining weeks is £148.68 or 90% of the employee's average weekly earnings, whichever is lower.
Statutory Adoption Pay (SAP) is paid at 90% of the employee's average weekly earnings for the first six weeks. The standard weekly rate for the remaining weeks is £148.68 or 90% of the employee's average weekly earnings, whichever is lower.
Statutory Paternity Pay (SPP) is payable for 1 or 2 weeks at the standard weekly rate of £148.68 or 90% of the employee's average weekly earnings, whichever is lower.
Statutory Shared Parental Pay (ShPP) is payable at the standard weekly rate of £148.68 or 90% of the employee's average weekly earnings, whichever is lower. Information for employers is available at http://www.gov.uk/shared-parental-leave-and-pay-employer-guide/entitlement
The amount of SMP/SPP/ShPP/SAP that may be recovered for employers who do not qualify for Small Employers Relief (SER) is 92% of the SMP/SPP/ShPP/SAP paid to their employees.
Employers who do qualify for Small Employers Relief (SER) can recover 100% of the SMP/SPP/ShPP/SAP paid to their employees plus NIC compensation of 3%.
A ‘small employer’ is one who paid (or was liable to pay) total gross class 1 NICs of £45,000 or less in the individuals qualifying tax year. For further information pkease refer to https://www.gov.uk/recover-statutory-payments
The annual threshold for the collection of existing Plan 1 Student Loans increases from £18,330 to £18,935.
The annual threshold for the collection of Plan 2 Student Loans increases from £25,000 to £25,725.
The deduction percentage rate for student loans remains unchanged at 9% of earnings above the threshold.
Support has been added for Postgraduate loan recovery. The annual employee earnings threshold for Postgraduate loans for 2019/2020 is £21,000 and deductions are made at 6%.
Calculate Net Pay will automatically apply the appropriate annual tax bands for the tax year / pay date as follows:
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2018 - 2019 |
2019 - 2020 |
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| England & Northern Ireland Basic Rate | 20% | £1 to £34,500 | £1 to £37,500 |
| England & Northern Ireland Higher Rate | 40% | £34,501 to £150,000 | £37,501 to £150,000 |
| England & Northern Ireland Additional Rate | 45% | £150,001 and above | £150,001 and above |
| Scottish Starter Rate | 19% | £1 to £2,000 | £1 to £2,049 |
| Scottish Basic Rate | 20% | £2,001 to £12,150 | £2,050 to £12,444 |
| Scottish Intermediate Rate | 21% | £12,151 to £31,580 | £12,445 to £30,930 |
| Scottish Higher Rate | 41% | £31,581 to £150,000 | £30,931 to £150,000 |
| Scottish Additional Rate | 46% | £150,001 and above | £150,001 and above |
| Welsh Basic Rate | 20% | N/A | £1 to £37,500 |
| Welsh Higher Rate | 40% | N/A | £37,501 to £150,000 |
| Welsh Additional Rate | 45% | N/A | £150,001 and above |
The new bands for 2019-20 are effective from the first pay day on or after 6th April 2019.
NB. A report of all the current statutory deduction and payment rates can be produced using the ‘Print Payroll Parameters’ function which is located on the Supervisor Functions menu.
As the qualifying earnings are reviewed annually, please contact your pension scheme provider to see if there are any changes.
If so, this can be changed in Amend Pension Scheme Details.
By law, the total minimum amount of contributions which must be paid into workplace pension schemes is increasing on 6th April 2019. Employers must make a minimum contribution towards this amount and the staff member must make up the difference. If you decide to cover the total minimum contribution required, your staff won’t need to pay anything.
This table shows the minimum contributions you must pay and the date when they must increase:
| Date | Employer minimum contribution | Staff Contribution | Total minimum contribution |
| Until 5th April 2018 | 1% | 1% | 2% |
| 6th April 2018 to 5th April 2019 | 2% | 3% | 5% |
| 6th April 2019 onwards | 3% | 5% | 8% |
Please see https://www.axisfirst.co.uk/documentation/WorkPlace-Pensions/articles/14043 for detailed information on managing workplace pensions in axis payroll.The staff contribution rate may vary depending on the type of tax relief applied by your scheme. If you are unsure check your scheme documents.
If you are required to declare a Disguised Remuneration Loan Charge in respect of outstanding employee or directors loan balances at 5th April 2019, you will need to download and install updated software prior to running your final pay period for the affected employee(s).
The updated software will alllow you to create a new pay component for processing the balance and flag the component as a 'Disguised Remuneration'.
For further information regarding Disguised Remuneration Loan Charge, please refer to Employer Bulletin: February 2019