The Update tax details utility allows you to update the current tax year current and previous employer tax details for an employee by selecting the employee based on their National Insurance number. This may be used if a printed report of bulk tax detail changes has been received.
Note: The next payroll release includes a bulk tax details import via csv sheet utility.
The option can only be run whilst the payroll type is unconfirmed.
To access the Update tax details option:-
The Payroll Password form is displayed.
Enter your payroll password.
The PAYROLL menu is displayed.
Select the Miscellaneous options option.
The PR MISCELLANEOUS OPTIONS menu is displayed.
Select the Utility options option.
The UTILITIES menu is displayed.
Select the Update tax details option.
The Update tax details form is displayed.
The Update tax details form is displayed when the Update tax details option is selected from the UTILITIES menu.
What do you want to do or be advised about?
Use of the Update tax details form
- Enter a National Insurance number and click the required employee if more than one employee is shown.
Enter the tax details and click OK.
National Insurance number: Enter the NI number in the XX######X or XX###### format.
Tip: Click the Ellipsis button
to select a NI number from the employee records database and click OK.
Once you have entered a valid NI number the following fields may be entered on the Edit details form.
P45 Details
HM revenue and customs notified: This check box is set to a tick to serve three functions as follows:-
1: If the employee joins without a P45 or if you have returned a P45 for this employee to HM Revenue and Customs reporting a tax discrepancy it reminds you of the return being made.
2: It forces the system not to calculate the P45 Calculated tax field, in normal circumstances the Calculated tax field is only calculated when it is a zero value however if the employee has a genuine calculated tax of zero and subsequently changes tax code a spurious calculated tax figure may be calculated incorrectly.
3: It stops the calculate option printing a warning for the remainder of the tax year that there is a discrepancy between the P45 tax and the P45 Calculated tax fields.
Note: It is very important that you do not tick this field when it should not be ticked otherwise the Calculated tax figure may not be calculated and a zero tax figure may be incorrectly used on brought forward tax calculations.
Period type: Whether the joining employee was previously paid weekly or monthly. If the employee does not have a P45 yet or has a Week 1/ Month 1 P45 then the current pay type may be used.
Last period: The last period recorded on the P45 of the joining employee. Alternatively, if no P45 exists or the P45 shows the employee was taxed on a Week 1/ Month 1 basis the field may show the current pay period.
Gross pay: The joining employee's gross pay for tax purposes from his or her previous employment.
Tax: The joining employee's gross tax from his or her previous employment.
Calculated tax: If the joining employee has a P45 then this field should be left as 0. Only if the employee is being paid on a Week 1 / Month 1 basis will a figure be entered in which case enter the same figure as the Tax field.
Note: When an employee joins their tax code should be entered on the payroll record the same as that seen on the P45 and once the P45 details have been entered, use the calculate pay option to check the tax. If you have been advised of a change to the employee's tax code change it following the initial calculation and re-calculate the payroll for the employee.
Other Details
Scottish tax payer: Ticked if the employee is to be treated as a Scottish tax payer - their tax code includes the letter S.
Tax code: The numeric part of the tax code for the selected employee between 0 and 999999. For example, 503
Tax prefix/suffix: This is the one/two character prefix/suffix for the selected employee's tax code. For example, H, L,P,V,T or BR as the suffix,or K, D or NT (No Tax) as the prefix.
Week/month 1 basis: Ticked if the employee is to have tax calculated under this basis.
NT Tax refund: Ticked if the employee is using the NT tax code and HM Revenue & Customs has authorised the refunding of tax paid earlier in the current year.
PUSH BUTTONS:
OK: Proceeds to perform the tax details update.
Cancel: Returns you to the National insurance number entry form with no tax details update being performed.
Help: Displays help on the current application in your default company browser.
The update tax details process and audit report
Once you have entered the tax details and clicked OK the payroll record is updated.
The payroll change control log may be written to with the tax field changes if the General 2 TAB payroll type parameter called Change control log file used is ticked and if the P45IRN, PETYPP45, P45PER, P45GROSS, P45TAX, P45CTAX, SCOTTISH, TAXCODE, TAXSUFFX, BASIS and NTREFUND fields have been set up for audit within the Change log setup option.
An audit report is produced detailing each of the tax detail fields with an indication on whether or not the field has changed with the before and after field contents.
