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18/02/2014
IRIS Payroll Basics
Release Notes
16/02/2015
www.iris.co.uk/freepayroll 1
Contents
Dear Customer ...................................................................................................................................... 2
IRIS Payroll Basics April 2015 Release - Version 1.22.* ..................................................................... 3
Auto Enrolment ....................................................................................................................................... 3
Full Payment Summary changes for tax year 2015 - 2016 ................................................................ 3
Employer Payment Summary changes for tax year 2015-2016 ....................................................... 3
Earlier Year Update ................................................................................................................................. 4
Transfer of Tax Allowance ..................................................................................................................... 5
Limit tax to 50% of taxable earnings .................................................................................................... 5
Reports ..................................................................................................................................................... 7
Other Issues ............................................................................................................................................. 7
IRIS Payroll Basics 2014-2015 Summer Release - Version 1.21.60 ................................................... 8
FPS Details report ................................................................................................................................... 8
EPS - No employees paid & CIS suffered ............................................................................................. 8
View Log on Configure Online Services ............................................................................................... 8
Restoring a Leaver .................................................................................................................................. 8
Previous Employee Code ....................................................................................................................... 8
Pay Annually .......................................................................................................................................... 10
New Bankline Ad Hoc Payment layout............................................................................................... 10
Other Issues ........................................................................................................................................... 11
IRIS Payroll Basics 2014-2015 May Release - Version 1.21.42 ........................................................ 12
Employment Allowance ....................................................................................................................... 12
IRIS Payroll Basics 2014-2015 May Release - Version 1.21.40 ........................................................ 13
Other Issues ........................................................................................................................................... 13
IRIS Payroll Basics 2014/2015 April Release – Version 1.21.10....................................................... 14
RTI arrangements for Casual Harvesters and Beaters .................................................................... 14
Restore Leaver from Previous Year .................................................................................................... 16
Starter Declaration ............................................................................................................................... 16
References to P14/P35/EOY/IYM removed ........................................................................................ 16
Pay Date aligning with Pay Period ...................................................................................................... 16
IRIS OpenPayslips - publish P60s ........................................................................................................ 17
Changes to the Full Payment Submission for 2014/15 .................................................................... 17
Changes to the Employer Payment Summary for 2014/15 ............................................................ 18
Other Issues ........................................................................................................................................... 18
www.iris.co.uk/freepayroll 2
Dear Customer
Welcome to your software update for Tax year 2015 - 2016. This update of the software includes
some new features and enhancements. These notes provide information on all the
improvements.
The Minimum Requirements for IRIS Payroll Basics can be found on our website here:
http://www.iris.co.uk/freepayroll
Important Reminder: If you are claiming Employment Allowance, you must do Month-
end Processing each Month in order for the Employment Allowance amount to
accumulate correctly
www.iris.co.uk/freepayroll 3
IRIS Payroll Basics April 2015 Release - Version 1.22.*
Auto Enrolment
It is now possible to use IRIS Payroll Basics to automatically enrol employees into a workplace
pension. For more information, view the Pension Guide on the Help menu.
Full Payment Summary changes for tax year 2015 - 2016
The Full Payment Submission has been updated to match the schema for submissions in tax
year 2015/2016
SCON No is now mandatory when sending an FPS for any employees on NI Rate D, E, I,
K or L. You can no longer populate SCON No with a dummy SCON No
ECON No is now mandatory when sending an FPS for any employees on NI Rate D, E, I,
K or L
Employer Payment Summary changes for tax year 2015-2016
The Employer Payment Summary has been updated to match the schema for submissions in tax
year 2015 - 2016. Other changes include:
■ In Company | Alter Company Details | Tax the Ceased Trading label has been changed
to Scheme Ceased
■ In Online Services | Send Employer Payment Summary | Employer Payment
Summary the Date Company Ceased Trading label has been changed to Date Scheme
Ceased
■ The OSPP and ASPP labels in Employer Payment Summary have been changed to SPP
and ShPP
■ A Period of Inactivity of up to 12 months can now be reported
■ Employment Allowance reduces the employer’s payment to HMRC, therefore to make
things clearer for you we have added the Employment Allowance value to the Employer
Payment Summary screens (although the value is not sent in the EPS file)
IMPORTANT: You must do Month-end Processing in order for the Employment Allowance
amount to accumulate correctly
■ If Final Employer Payment Summary for Tax Year is ticked when sending an EPS the
Questions & Declarations and responses will be printed on the EPS Submission
Confirmation report
www.iris.co.uk/freepayroll 4
Earlier Year Update
The Earlier Year Update has been updated to match the schema for submissions in tax year 2014
- 2015. Previous schemas will be used for any EYU submissions for 2013 - 2014 or earlier. Other
changes include:
■ It is now possible to send just the difference between current and previous year to date
values (by ticking Enter EYU values only) or to automatically populate the screen with the
final period values for the tax year, by clicking Populate EYU values with last period
values for tax year. This option is for use if you have not sent your final period FPS before
19th April. See Help | RTI Guide for full instructions.
A new tick box has been added to the right of Submission Type called Enter EYU
values only
A new tick box has been added to the right of Enter EYU values only called Populate
EYU values with last period values for tax year
■ Recently Bereaved and Annual Pension Amount fields have been added to the EYU
under the Sundry button. You need to tick the Enable Annual Pension & Recently
Bereaved box on that screen to be able to use them
Ticking the Enable Annual Pension & Recently Bereaved box will potentially send
these fields on an EYU. Unlike other values on the submission where the EYU value
will add or remove from figures that have already been sent, Annual Pension is a
Year To Date field. Therefore whatever value is entered will overwrite whatever was
previously sent
www.iris.co.uk/freepayroll 5
National Insurance Changes for Employees under 21
From 6 April 2015, employers will not be required to pay Class 1 Secondary National Insurance
Contributions on earnings up to a new Upper Secondary Threshold (UST), for employees who are
under the age of 21on the payroll date. Class 1 secondary NICs will however continue to be
payable on all earnings above the UST.
Four new National Insurance category letters will be introduced into the payroll software
(M, K, I, Z)
The Government has said that for tax year 2015-2016 the value of the Upper Secondary
Threshold and the Upper Earnings Limit (UEL) will be the same
The Upper Secondary Threshold will not be reportable to HMRC on RTI returns
The payroll software will manage existing employees for you; you will not need to make any
changes yourself:
The Year-end Restart will set the correct NI Letter for any under 21s
Once in the new tax year, the payroll run will assess any under 21s and make the required
changes automatically
Transfer of Tax Allowance
Transferrable Tax Allowance for married couples and civil partners will allow a spouse or civil
partner who is not liable to income tax above the basic rate to transfer £1,060 of their personal
allowance to their spouse/civil partner:
■ Provided that the recipient of the transfer is not liable to income tax above the basic rate
■ HMRC intend to issue 2 new tax code suffix letters to cater for the transfer, M or N
Limit tax to 50% of taxable earnings
From 6 April 2015 Income Tax will be limited to 50% of gross taxable earnings for all tax codes.
This is similar to the way K codes currently operate.
www.iris.co.uk/freepayroll 6
Statutory payment changes
New Statutory Adoption Payment rules
Currently the Statutory Adoption Payment is paid for 39 weeks at a rate of 90% of Average Weekly
Earnings or at the standard weekly rate, whichever is lower.
For Placement Dates on or after the 5 April 2015 this will change so that the first 6 weeks will be
paid at 90% of Average Weekly Earnings, similar to SMP.
Changes in Parental Leave
For births and adoptions with a due/placement date on or after 5th April 2015, the Government
have introduced Shared Parental Pay & Leave. Additional Statutory Paternity Pay and Leave will be
abolished for babies due/placed on or after 5th April 2015.
Shared Parental Leave is a new entitlement allowing eligible mothers, fathers, partners or
adopters to choose how to share time off work after their child is born or placed. It is thought that
this will give parents more flexibility to share the care for their child in the first year following
either birth or adoption. Shared Parental Leave will allow both parents to share the leave which
can be taken at the same time or separately.
Shared Parental Leave consists of up to 50 weeks of untaken maternity or adoption leave and up
to 37 weeks of untaken Statutory Maternity or Adoption Pay shared between both
parents/adopters and can be taken in discontinuous blocks.
Example 1
6 weeks SMP at the high rate
33 weeks ShPP
13 weeks ShPL
Example 2
2 weeks SMP at the high rate
37 weeks ShPP
13 weeks ShPL
For further information see https://www.gov.uk/shared-parental-leave-and-pay/overview
A new ShPP tab has been added to the Statutory Payments screen to enable you to
record Shared Parental Pay
Any outstanding ASPP will be recorded and sent to HMRC as ShPP on the FPS
www.iris.co.uk/freepayroll 7
Reports
Questions & Declarations
A new Questions & Declarations report has been added. Print the report from Reports | Print
Other Reports section.
Other Issues
Legislation
77788 The Student Loan Threshold has increased to £17335
77775 Tax, NI, SSP, SMP, SAP and SPP/ShPP Rates have been updated for 2015 - 2016
Real Time Information
77815 SSP has been removed from the EYU screen
77019 Final Submission status has been added to the Audit log
www.iris.co.uk/freepayroll 8
IRIS Payroll Basics 2014-2015 Summer Release - Version 1.21.60
FPS Details report
Any employees detailed in the Employees included in the FPS and not paid section of the FPS
Details report are now split by pay frequency.
EPS - No employees paid & CIS suffered
If you do not pay any employees in the tax month you need to submit an EPS with No
Employees Paid in Current Month ticked. If the same company also has CIS
Deductions Suffered to declare in the same month you can now also enter that value.
You are also now able to alter Year To Date and Current Month values on the EPS when
No Employee Paid in Current Month and Final Submission for Tax Year are ticked.
View Log on Configure Online Services
The View Log button has been removed from the Configure Online Services screen.
Restoring a Leaver
HMRC now permit employers to restore a leaver and then continue paying them as a current
employee even if their leaving date has been sent on a Full Payment Submission. This is useful if
you have, for example, made the wrong employee a leaver and have already sent the FPS.
However, this only applies in the current tax year; if you are restoring a leaver from a previous tax
year, you can only do so to make a ‘payment after leaving’.
From now on, if you attempt to restore a leaver in the current tax year, and their leaving date has
already been sent to HMRC, you will see the following message:
‘Are you restoring this employee to continue paying them or are you making a payment after
leaving?
Click ‘Yes’ to continue paying the employee or make an adjustment to their final pay
Click ‘No’ to make an additional payment to the employee after they left’
Previous Employee Code
You are now able to record a Previous Employee Code and have it sent via FPS ensuring HMRC
do not create a duplicate employee in their system. This is for use when you have paid an
employee under a different employee code but within the same PAYE reference.
www.iris.co.uk/freepayroll 9
1. When you add the employee to the company, in their Employee Details on the Tax/NI
tab, click on the ‘Starter Details’ button
2. On the New Starter tab, make sure ‘This is not a new employee’ is ticked and enter the
old employee code in the ‘Previous Employee Code’ box
3. The Previous Employee Code box will only be enabled for employees who have not yet
had a successful FPS submitted for them. Once a successful FPS has been sent the field will
be hidden
4. The Previous Employee Code will then be sent via FPS so HMRC do not create a duplicate
employee in their system
www.iris.co.uk/freepayroll 10
Pay Annually
A Pay Annually indicator is now available in Employee Details.
The Pay Annually function is designed to be used for Pension drawdown, which permits
payments to be made to employees in different pay periods, and payments are made to HMRC
more than once in the tax year.
To use this function:
1. Open the ‘Employee’ menu, click on ‘Select Employee’ and from the list select the
relevant employee
2. Select the ‘Period’ tab and tick the ‘Pay Annually’ box
3. Click ‘Save’
4. If the employee has already been paid in the current tax year, this message will appear:
5. Click ‘Yes’ to apply the changes or ‘No’ for the Pay Frequency to remain as it was
6. Set the ‘Next Tax Pay Period’ to be the pay period you intend to pay the employee
7. If you currently don’t know when you are to pay, select ‘Hold’ on the Period tab to prevent
them appearing in the payroll.
8. At the point you know when they are to be paid, de-select ‘Hold’, set the pay frequency
and set the ‘Next Tax Pay Period’ to be the pay period you intend to pay them
Regardless of the Next Tax Pay Period you select, IRIS Payroll Basics will still use the annual
thresholds to calculate the employee’s pay when Pay Annually is ticked.
New Bankline Ad Hoc Payment layout
We have added a new entry to the BACS library selection called Bankline BACS Ad hoc Payments.
When pay is annual, it is not possible for IRIS Payroll Basics to calculate average
earnings correctly. You will need to calculate and enter Statutory Payments manually
www.iris.co.uk/freepayroll 11
Other Issues
Employee Details
78071 In Employee Details, an employee’s length of service, LoS, now appears next to the date
Started on the General tab
Employee Template
78061 When creating a new employee using an existing employee as a template, the details on
the Auto Enrol tab and Pensions tab are no longer copied
NI Adjustment
75977 NI Adjustment window and Summary screen both now show <Surname>, <Forename1>
<space> <Forename2> (<Code>) in the title bar
Real Time Information
75109 In IRIS Payroll Lite and IRIS Payroll Basics several irrelevant options have been removed
from the Configure | RTI tab
74754 The two sections displayed when opening Multiple NICs from the EYU screen are "Current
Letter" and "Previous Letter". The latter has been changed to "Previous Letter 1" to avoid
confusion over how many can be entered
www.iris.co.uk/freepayroll 12
You may need to redo month end processing if you make changes to a month and have already
processed further months.
For example:
Process month end for month 1, 2 and 3 and reach the £2000 allowance
Pay an employee in month 2 that you originally missed
Redo month end for month 2 but this then takes the Employment Allowance over £2000
You will need to redo month end processing for month 3 to recalculate EA
IRIS Payroll Basics 2014-2015 May Release - Version 1.21.42
Employment Allowance
The Company Details screen now has the option to add Employment Allowance. This is a new
£2000 allowance for all businesses, charities and Community Amateur Sports Clubs which is to be
offset against Class 1 Secondary NICs. It is per business, not PAYE Reference.
The money is not claimed from HMRC, it is simply not paid over to HMRC with your normal liability
at the end of the month.
If you believe you are eligible you should tick the indicator. To find it, open the ‘Company’ menu
and select ‘Alter Company Details’. The ‘Emp Allow’ indicator is on the Tax tab. If you have
already claimed some Employment Allowance under a different payroll system, enter the
remaining amount to be claimed under ‘Max Emp Allow’; otherwise this should be 2000.00. The
latest selection remains in place and does not need to be resubmitted at each new tax year.
IMPORTANT - If you select this option you must send an EPS to inform HMRC even if the
other EPS values are zero!
www.iris.co.uk/freepayroll 13
IRIS Payroll Basics 2014-2015 May Release - Version 1.21.40
Other Issues
77073 If an employee has been processed via the payroll with zero pay they will be included in
the FPS for that period
77135 The One-off indicator has been added to the Employee Template & Import screens
www.iris.co.uk/freepayroll 14
IRIS Payroll Basics 2014/2015 April Release – Version 1.21.10
RTI arrangements for Casual Harvesters and Beaters
HMRC has an existing agreement with the National Farmers Union covering payments to harvest
casuals and one with the Country Land & Business Association for casual beaters. These
agreements set out how payments to daily paid harvest casuals and casual beaters should be
treated for tax and NI. These agreements remain the same under RTI but there is a change in how
they are reported to HMRC.
A One-Off function has been added to IRIS Payroll Basics to reduce the burden on employers who
pay Harvest Casuals and Beaters.
If the individual is a daily harvest casual or beater and:
Is taken on for one day or less
Is paid off at the end of that period
Has no contract for further employment
And if the Employee appears once in a single FPS:
You need to:
1. Create the employee in IRIS Payroll Basics including their full name, date of birth, gender,
National Insurance number and address
2. Tick the ‘One-off’ indicator on the Period tab
3. Run the payroll and send the FPS
4. The system will set the Start Date and Leave Date to be the same as the Pay date
If you pay this employee again another day in a different pay period:
1. Create a new employee record for the employee
2. Enter the ‘Start Date’ (same as the pay date)
3. Tick the ‘One-off’ indicator on the Period tab
4. Alter the ‘Next Tax Pay Period’ to the pay period you are paying the employee for and
save the changes
5. Run the payroll and send the FPS
The system will set the Start Date and Leave Date to be the same as the Pay date
Employee appears multiple times per FPS
1. Create the employee in IRIS Payroll Basics including their full name, date of birth, gender,
National Insurance number and address
2. Tick the ‘One-off’ indicator
3. Create a new employee record with the one-off indicator ticked, for as many times as you
www.iris.co.uk/freepayroll 15
need to pay the employee
4. Run the payroll for each record with different pay dates
5. Send the FPS as needed
6. The system will set the Start Date and Leave Date to same as Pay date
More advice on paying Casual Harvesters and Beaters can be found on the HMRC website here:
http://www.hmrc.gov.uk/payerti/employee-starting/special-situations/temps/harvest-
casuals.htm
www.iris.co.uk/freepayroll 16
Restore Leaver from Previous Year
The facility to restore a leaver from a previous tax year is now available. You can only use this
function if you need to make a Payment after Leaving. The Payment after Leaving flag will be
included in the next FPS and the payroll calculation for the individual will be based on 0T week
1/month 1 tax code basis. You must then issue a P45 and make the employee a leaver again
before sending the next FPS.
On the Employee List Configuration the option All Leavers will now include leavers from the
previous year.
Starter Declaration
The default statement for Starting Declaration | P46 not completed will now be Statement C
for FPS reporting purposes.
References to P14/P35/EOY/IYM removed
When RTI is enabled for a company, all references to year end e.g. P14 or P35 will be removed.
Pay Date aligning with Pay Period
It is now imperative that the Payroll Date in
use is within the Pay Period being processed. If
the Payroll Date differs from the Pay Period,
HMRC will assume the employer has either
over or under paid them.
IRIS Payroll Basics will now display a warning if
the Payroll Date is not within the Pay Period
selected on the Payroll Run screen.
www.iris.co.uk/freepayroll 17
IRIS OpenPayslips - publish P60s
The IRIS OpenPayslips module now has the ability to publish P60s to the cloud as well as payslips.
For further information please contact our Sales team or find details on our website at
http://www.iris.co.uk/cloud-solutions/iris-openpayslips/
Changes to the Full Payment Submission for 2014/15
■ For the 2014/15 tax year, HMRC are introducing changes to the bandwidths for Normal
Hours Worked Per Week including a new option. The bands from tax year 2014/15 are as
follows:
A – Up to 15.99 hrs
B – 16.00 – 23.99 hrs
C – 24.00 – 29.99 hrs
D – 30.00 hrs or more
E – Other
When you create a new employee in 2014/15, Normal Hours Worked Per Week will
default to E – Other.
The bands will be updated automatically when you move into the 2014/15 tax year.
If you have employees who’s Normal Hours Worked Per Week in the 2013/14 tax year
fell between 24.00 and 29.99 hours, you need to manually amend the band in Employee
Details; select C – 24.00 – 29.99 hrs.
■ On the Full Payment Submission screen under the section Submission, we have added
Reason for Late Reporting. This is an optional field allowing you to decide if the FPS is
late, and if so, what reason to select.
The reasons available for late submission are as follows:
None (selected by default)
A: Notional payment: Payment to Expat by third party or overseas employer
B: Notional payment: Employment related security
C: Notional payment: Other
D: Payment subject to Class 1 NICs but P11D/P9D for tax
E: Micro Employer using temporary "on or before" relaxation
F: No working sheet required; Impractical to report
G: Reasonable excuse
H: Correction to earlier submission
www.iris.co.uk/freepayroll 18
If the late reporting applies to an individual as opposed to the whole submission, you will
need to submit the FPS for the relevant employee only.
■ The field SCON No. has been added to Employee Details section. A SCON number is
usually required for employees on NI Rate D, E or L
■ If an incorrect Leaving Date has been sent for an employee, you must correct the Leaving
Date in Employee Details but the system will continue to send the incorrect Leave Date as
per HMRC’s instructions. This is to prevent duplicate records being created on HMRC’s
systems
Changes to the Employer Payment Summary for 2014/15
■ In line with HMRC changes, from the 2014/15 tax year SSP Recovery, NIC Holiday and
Advance from HMRC have been removed
■ The option to add a Period of Inactivity has been included in the EPS submission screen.
This option allows you to inform HMRC that you do not intend to pay any employees in the
future for a specified amount of time
Other Issues
74039 An Employee Age field in has been added to the General tab of Employee Details
75477 Student Loan Threshold increasing to £16910 from 6th April 2014
75590 Company Tax Reference has been renamed to Corporation Tax Reference
76681 Pre-printed P60 reports have been updated
Call 0844 815 5656, or visit iris.co.uk to find out more
IRIS & IRIS Software Group are trademarks © IRIS Software Ltd 06/2013. All rights reserved
Software available from IRIS IRIS Payroll Basics Free, RTI compliant payroll software for companies with fewer than 10 employees
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IRIS P11D
The easy way to complete employee expenses and benefits returns
IRIS HR Manager The easy way to keep employee data up-to-date
IRIS OpenPayslips A secure web based solution that allows your employees to access, and download their e-payslips via an online portal
Stationery order line
Tel: 0844 815 5766
HMRC online service helpdesk
Tel: 0300 200 3600
Fax: 0844 366 7828
Email: [email protected]
HMRC employer helpline
Tel: 0300 200 3200
HMRC employer helpline (for new business)
Tel: 0300 200 3212
