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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