Legislation Update February 2018 – Release Notes

Welcome to your software update for Tax Year 2018/2019.

Rates and bands for tax, NI, Statutory Payments, Student Loans etc., have been updated for 2018/2019 and the VCA Car Database & CO2 Emission Values have been renewed. You can see the values here.

We have also made the following changes:

Income Tax

We have added the SD2 tax code to cater for the new higher rate of income tax introduced by the Scottish Parliament.

Phasing – Year-end Restart

As per the Auto Enrolment legislation, minimum Employer Contributions will increase in April 2018 and April 2019 as per the table below.

For more information on Phasing please view the TPR website here.

Automatic Enrolment Scheme

DateEmployer minimum contributionTotal minimum contribution
06/04/18 – 05/04/192%5% (including 3% staff contribution)
06/04/19 onwards3%8% (including 5% staff contribution)

As the minimum threshold is increasing, Kashflow Payroll will now display a warning detailing this on four separate occasions:

  • First pay period in 2018/2019 tax year
  • Amending Er/Ee pension contributions
  • Creating a new pension scheme
  • AE Wizard

The message will be displayed each time an incorrect value is entered upon clicking Submit or Next, dependant on the screen.

Scottish Relief at Source

From April 2018/2019, the Relief At Source (RAS) for pension contributions must be calculated using the appropriate basic rate for Scotland and the appropriate basic rate for the rest of the UK.

Where the Payment/Deduction is a pension deduction with Subtract basic tax rate ticked, the payroll software will reduce the deduction by the basic rate tax value for the appropriate tax regime i.e. Scottish or rest of the UK, based on the tax code during the pay period.

Tax codes with ‘S’ as prefix will use the Scottish basic rate value whereas any other tax code will use the rest of the UK basic rate tax value.

Staging Date

Following changes by The Pensions Regulator, Staging Date has changed to Duty Start Date / Staging Date throughout the software and Letter L0 will no longer be generated.

Earlier Year Update (EYU)

We have added the ability to submit an EYU for tax year 2017/2018.

To do this:

  1. Click Employees on the left of the screen, then select EYU from the drop down list
  2. Click the arrows next to the tax year you wish to submit for
  3. Enter the corrected values into the Corrected Values column and Kashflow will calculate the values to be sent and display them in the EYU Values column
  4. When you are happy with the EYU Values tick the Yes, submit EYU box then click Save and Review. This will submit your changes to HRMC

Earlier Year Submissions Screen

We have added an EYU Logs button to the Online Filing screen, to the right of the existing RTI Logs button.

It displays the reporting year and allows you to cycle through tax years.

Submissions Table

The table shows EYU Submissions in the selected tax year. (The tax year in which the corrections were made.)

It displays:

  • Type
  • Tax year
  • Date filed
  • Processed
  • Status

Submission Status Screen

This screen displays the submission details. It shows the XML submission and the XML response.

Full Payment Submission (FPS)

We have updated the FPS schema for submissions relating to tax year 2018/2019.

Employer Payment Submission (EPS)

We have updated the EPS for submissions relating to tax year 2018/2019.

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