Payroll: desktop version 2.56.3

Karishma Updated by Karishma

The latest release of Payroll (desktop version 2.56.3) will be available w/c 24th October 2022

As you will be aware, on 23rd September, an emergency budget with an aim to help deal with the cost-of-living crisis was announced. This budget requires some in-year changes to payroll which is the sole purpose of this software update and should be treated as a mandatory update to ensure that your software remains compliant.

The legislative changes within the 2.56.3 release are as follows:

  • The removal of the Health and Social Care Levy rate increase to National Insurance - The contribution percentages for both employers and employees contributions has reverted back to the levels in the 2021-22 tax year from the 6th of November.
  • Directors revised annualised NI rate - For Directors, a revised annualised National Insurance rate will also apply to ensure consistency with the mid-year changes.
  • Rate of Class 1A NICs adjusted - The rate of Class 1A NICs will be a revised annualised rate for the 2022-23 tax year but will exclude sporting testimonials and termination payments reported on an RTI return. For these, the rate to use is the rate that applies at the time of the payment of the general earnings or amount.
  • Removal of the H&SCL payslip message - With the removal of the H&SCL from the 6th of November, payrolls dated after this date will no longer show the H&SCL message. Payslips generated with a payroll date before this however will still show the message unless it has been turned off with the setting that was introduced in 2.56.2.6

The full details contained in the emergency budget can be found here.

Links to the HMRC legislative tables can be found here. As of 12/10 these are yet to be updated but a note has been added to the bottom indicating the changes.

The full list of changes can be found in the table below:

Type

Description

Change Notes

Desktop v.2.56.3

24/10/2022

Product Enhancement

Removal of the Health and Social Care Levy rate increase to National Insurance

The contribution percentages for both employers and employees contributions has reverted back to the levels in the 2021-22 tax year from the 6th of November

Product Enhancement

Directors revised annualised NI rate

For Directors, a revised annualised National Insurance rate will also apply to ensure consistency with the mid-year changes

Product Enhancement

Rate of Class 1A NICs adjusted

The rate of Class 1A NICs will be a revised annualised rate for the 2022-23 tax year but will exclude sporting testimonials and termination payments reported on an RTI return. For these, the rate to use is the rate that applies at the time of the payment of the general earnings or amount

Product Enhancement

Removal of the H&SCL payslip message

With the removal of the H&SCL from the 6th of November, payrolls dated after this date will no longer show the H&SCL message. Payslips generated with a payroll date before this however will still show the message unless it has been turned off with the setting that was introduced in 2.56.2.6

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