The further PAYE changes announced in the budget on 21/03/2007 are likely to be effective on the first pay day after 17/05/2007 (week 7, month 2) therefore it is necessary for you to ensure that all payroll types in all payroll companies are in a payroll period with a pay date after the 17th May 2007. Please note that if there is a delay in the budget statement that the application date would likely be in June 2007.
Log in as a priority 8 user into any payroll company and payroll type - this ideally is the normal login priority of the payroll manager.
Enter the payroll System maintenance menu, Upgrade menu. Run the option called Check payroll periods and check that there are no payroll types shown in period 1 and for weekly payroll types check that all payroll types shown are in the correct payroll period.
The exceptions to this are if the payroll type has not been used at all in the 2007/2008 or earlier PAYE year(s) or if it concerns a training company. If in doubt, contact software support.
ACCORDING TO HM REVENUE & CUSTOMS, THRESHOLD/BAND CHANGES ANNOUNCED IN THE BUDGET ON 21/03/2007 ARE NOT TO BE RAISED UNTIL NOTIFICATION HAS BEEN RECEIVED FROM HM REVENUE & CUSTOMS/EMPLOYER PACK.
THIS IS BELIEVED TO BE EFFECTIVE ON THE FIRST PAY DAY ON OR AFTER 18/05/2007. THIS ADVICE HAS BEEN PROVIDED BY THE HMRC EMPLOYER HELPLINE ON 22ND MARCH 2007.
IT IS YOUR RESPONSIBILITY TO ENSURE THE PAYE TABLE IS THEN UPDATED AGAIN.
With no users logged into the payroll module, log in as a priority 8 payroll user - this ideally is the normal login of the payroll manager. Enter the System maintenance option called PAYE rates and check/adjust the table.
THIS NEEDS TO BE CHECKED FOR EACH PAYROLL COMPANY EFFECTIVE WHEN ADVISED BY HM REVENUE & CUSTOMS. FOR THE TAX YEAR 2007/2008 - BELIEVED TO BE 18/05/2007
| Number | Rate (%) | Threshold | Band |
|---|---|---|---|
| 1 | 10.00 | 2230 | 2230 |
| 2 | 22.00 | 34600 | 32370 |
| 3 - 12 | 40.00 | 99999999 | 99999999 |
| Basic Rate = 2 | |||
| Emergency tax code = 522 | |||
| Scottish variable rate = 0.00 |
Ensure that the record is saved by selecting the Save option.
The update is complete, make sure a data back up of your system is done as soon as possible.
