Release 4.09.00

Version

4.09.00

Released

Mar 21

Summary

This release includes the statutory payroll changes for the 2021-22 tax year, plus a number of other improvements.

Statutory changes:

Student Loans:

• Student Loan annual thresholds have been updated in line with legislation for 2021/2022

• Scottish Student Loan Plan Type 4 changes for tax year 2021/2022.

National Minimum Wage and National Living  Wage changes:

• National Minimum Wage/National Living Wage 2021/2022.

Starter Checklist Process Amendments:

• Changes have been made by HMRC to the Starter Checklist including new statement text and student loan options

RTI Changes:

• FPS

• EPS

Pensions:

• LGPS Bands for England/Wales have been updated for 2021/2022

• Teachers` Pension tiers have been updated for 2021/2022.

Full Payment Submission (FPS) for a previous tax year:

• Send amended FPS data for a previous tax year.

Other improvements:

• P60 Changes for year-end 2020/2021 and to Include Statutory Parental Bereavement Pay

• Demo database update 2021/2022

• Cater for Diesel meets RDE2 regulation from the car database and Car Fuel Benefit Multiplier increased to £24,600.00

• State Aid update- Business sector for De Minimis State Aid has changed from Industrial to Industrial/Other in the Company Options form

• Year-end Restart values for tax code uplift M, N & L

• Plain Paper P60 has been added.

Furlough Scheme:

• Calculations have been added for the Furlough Scheme extension until April 2021 as per the government update.

PAYE Legislation Changes:

• Updates to Tax, NI, Statutory Payments, NMW/NLW, AE rates and parameters in line with legislation for 2021/2022.

The annual thresholds have changed for 2021/2022:

• Plan Type 1 increased from £19,390 to £19,895

• Plan Type 2 increased from £26,575 to £27,295

• Plan Type 4 is new for April 2021 and has a threshold of £25,000

• Postgraduate Student Loans remains at £21,000.

Software changes

The annual thresholds have been updated in Capital Gold Payroll in line with legislation for 2021/2022:

Print Tax/NI/Pension Rates

We have updated File | Print Tax/NI/Pension to include the new threshold for Student Loan Plan Type 4.

Payroll Calculations

Although the threshold differs when calculating Student Loan Plan Type 4, there is no change to the rate or method when calculating student loan deduction.

Example - Plan Type 4 (using 2021/2022 monthly thresholds)

RTI

RTI submissions have been updated to include all Student Loan Plan Types. The FPS Student Loan Year to-date value will be a combination of Plan Type 1, 2 and 4 deductions where all, or either, have existed in the current year.

Applies to

Employees subject to student loan repayments.

Effective

From 6 April 2021.

More information

For further details about the student loan, visit https://www.gov.uk/browse/education/student-finance.

HMRC has revised the National Minimum Wage (NMW) and the National Living Wage (NLW) age brackets and rates for the tax year 2021/2022.  The new NMW/NLW ages and rates for April 2021 are:

Software changes

Following these changes, we have updated the software to perform checks using the new parameters.

Note: The system does not make automatic rate changes for employees. It only checks the rates and ages are the correct parameters for the tax year. It is your responsibility to change them. Before updating the software, if you have entered your own rates on the Admin | File | Companies | Minimum/Living Wages Rates screen with a date later than 1 April 2021, the system will not overwrite these figures, you will need to change them manually.

Reports

We have updated all reports in line with the new NMW and NLW parameters.

Applies to

All employees

Effective

From 6 April 2021.

More information

For details about national minimum wage and national living wage rates, visit https://www.gov.uk/national-minimum-wage-rates.

Changes have been made by HMRC to the Starter Checklist including new statement text and student loan options.

Software changes

Statements A, B and C have been updated in line with HMRC requirements. The new statements are:

Statement A: “Do not choose this statement if you’re in receipt of a State, Works or Private Pension. Choose this statement if the following applies. This is my first job since 6 April and since the 6 April I’ve not received payments from any of the following:

• Jobseeker’s Allowance

• Employment and Support Allowance

• Incapacity Benefit”

Statement B: “Do not choose this statement if you’re in receipt of a State, Works or Private Pension. Choose this statement if the following applies. Since 6 April I have had another job but I do not have a P45. And/or since the 6 April I have received payments from any of the following:

• Jobseeker’s Allowance

• Employment and Support Allowance

• Incapacity Benefit”

Statement C: “Choose this statement if:

• you have another job and/or

• you’re in receipt of a State, Works or Private Pension”

In light of changes made by HMRC to the Starter Checklist, on the Employee Details | Tax/NI | Starter Details | New Starter tab, we have renamed the Present Circumstances frame to Student Loans and Postgraduate Loan.

Also, on the Starter Checklist, we have added a new frame, Transfer from Another Payroll System.  We have also renamed the following fields:

This is not a new employee has been renamed This employee is not a new starter to the PAYE Scheme

Previous Employee Code tick box has been changed to Previous Employee Code/RTI Pay ID.

Starter Checklist Reports

We have updated the New Starter Reports to match the layout provided by HMRC

Applies to

New starters

Effective

From 6 April 2021.

More information

For details about the starter checklist, visit https://www.gov.uk/government/publications/paye-starter-checklist.

The FPS and the EPS schema have been updated for tax year 2021/2022 by HMRC.

Software changes

• The FPS schema has been updated for tax year 2021/2022 in line with government legislation

• Updated the EPS schema for submissions relating to tax year 2021/2022.

Applies to

RTI submissions.

Effective

From 6 April 2021.

More information

For details about reporting to HMRC, visit https://www.gov.uk/running-payroll/reporting-to-hmrc.

The LGPS Bands for England/Wales and Scotland have been updated for 2021/2022.

The Teachers’ Pension tiers have been updated for 2021/2022.

Software changes

The LGPS England/Wales Amendments screen has been updated for 2021/2022.

The LGPS Bands for Scotland have been updated for 2021/2022.

The Teachers’ Pension Amendments screen has been updated for 2021/2022.

Applies to

Employees with LGPS and Teachers’ Pension Schemes.

Effective

From 6 April 2021.

More information

For details about LGPS, visit https://www.gov.uk/government/collections/local-government-pensions.

For details about teacher pension schemes https://www.gov.uk/government/collections/teachers-pension-scheme.

An Earlier Year FPS allows you to submit a Full Payment Submission (FPS) to HMRC for a previous tax year and after 19th April in the current tax year:

• You can only send an Earlier Year Update for submissions up to Tax Year 2019/2020

• From Tax Year 2021/2022, you can send an Earlier Year FPS to correct data from the previous year.

Software changes

For a company in tax year 2021/2022, the Earlier Year Update (EYU) option will no longer be available on the Online Services menu as you can no longer send an EYU to correct any mistakes made in the previous tax year.

To enable you to submit an Earlier Year FPS, a new menu item on the Online Services tab, Send Earlier Year FPS has been added.

Note: Please refer to the F1 help topic for Send Earlier Year FPS for further information.

Applies to

All employees

Effective

From 6 April 2021.

More information

For details about error corrections, visit https://www.gov.uk/payroll-errors/correcting-pay-or-deductions.