Overview

Background

HMRC have changed the PAYE reporting regulations: 

 Currently, Finance sends an annual Tax Year End return to HMRC each April, for the Tax Year just ended. 

 From Tax Year 2013-14, employers are required to provide this information in real time, in conjunction with their regular employee pay runs.  This Real Time information (RTI) will be a fundamental change for all employers in the UK.  The new system for reporting employee pay, tax and National Insurance details will be the biggest change to the operation of PAYE since it was introduced in 1944.  Rather than submit summary details at the end of the tax year, employers will be required to communicate them to HM Revenue & Customs (HMRC) every time a payment is made to the employee.

HMRC has identified up to 106 potential pieces of information to be transmitted under the RTI programme.  36 of these are new items.  In addition, the data must be specifically linked through a code (called a “hash”) to the BACS payment made to the employee.

In April 2013, two separate deliverables will therefore be required, in order to meet HMRC regulations:

1. The annual Tax Year End return, for tax year 2012-13.
2. The changes required to support the new real-time returns, for tax year 2013-14 onwards.  (HMRC have indicated that the deadline for this deliverable may be delayed until later in 2013.

FIN082 confirmed the Terms of Reference for the scope of the work. This 2012-13 project - HRS072, under the HR-Payroll programme, will take the agreed requirements forward to the technical and delivery stages.

Scope, Objectives and Deliverables

 Scope includes

1. Clone Oracle R12 Live to Dev and Test
2. Apply any Oracle security patches.
3. Apply the annual Family Pack of Oracle patches.
4. Apply all Oracle ( usually Legislative and any P60 changes) patches required to support the 2012-13 annual Tax Year End submission to HMRC.
5. Apply any Oracle patches arising from the UK Budget of March 2013.
6. Apply all Oracle patches required to support the 2013-14 Real Time Information submissions to HMRC.
7. Apply all Oracle patches required to support Auto-enrolment

The following are outwith the scope of the projects:

• Any in-house configuration changes to the Payroll system, beyond those required for P60.
• Any involvement in upgrading of the method of securely transmitting files to and from HMRC

Benefits

No staff costs savings are anticipated.

This is a Compliance proejct in order to meet legislative requirements.

Success Criteria

 That the Leislative requirements are met and that Payroll continues to produce Payrol, Reports and Payslips at the correct time.