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Payroll Tax Year 2015-16: Advance Information

Changes for payroll tax year 2015-16
Note: QuickBooks 2015, R6 (estimated released 30 March 2015) will incorporate the legislative changes for the new tax year 2015/16 from 6 April 2015 onwards
Additional Statutory Paternity Leave will be replaced by Shared Parental Pay and Leave (ShPP/L)
For parents of babies born on or after 5 April 2015, Additional Statutory Paternity Pay (ASPP) will be replaced with Shared Parental Pay and Leave (ShPP/L). ShPP/L allows eligible partners to share parental pay and leave.
  • Parents can agree to curtail maternity pay and leave into shared parental leave. The available shared parental leave is 52 weeks minus the weeks of maternity leave already taken
  • The available shared parental pay is 39 weeks minus the weeks of maternity pay already taken 
  • At least a week must be taken at a time and all leave must be taken before the child's first birthday
  • Parents can choose to be on leave at the same time
  • Ordinary Paternity Leave is not affected. Fathers can still take up to two weeks OPL and then take SPL/ShPP if required 
Statutory Adoption Pay will be paid at 90% of average weekly earnings for the first 6 weeks
  • Statutory Adoption Pay becomes a Day one right
  • From 5 April 2015 the first 6 weeks will always be paid at 90% of the average weekly earnings, mirroring SMP. For the remaining 33 weeks the SAP will be calculated as before
New NI Catergory letters for people aged under 21 (M,Z,I,& K) 
  • New NI category letters are being introduced to identify employees who are under 21 with the aim of encouraging employment of the young/reduce youth unemployment
  • Employer NI contributions for employees under 21 are being reduced to a 0% rate up to a new NI threshold called the ‘Upper Secondary Threshold’ (UST).  Employers will still pay 13.8% on any earnings above the UST
Transferable Allowances
  • To support the new transferable allowance between couples
  • Only applicable to couples on the basic tax rates (not higher or additional rates)
  • Couples have to apply to HMRC to transfer the allowance, once HMRC approves of the transfer new tax codes will be issued (M & N)
Changes in Tax Codes
There will be an uplift to tax codes with the suffix ‘L’.  These codes will increase by 60; 1000L becomes 1060L and the emergency tax code from 6 April 2015 is 1060L.  There is no ‘global uplift’ feature in QuickBooks, employee tax codes must be changed individually on their employee record.
Tax deductions will be restricted to 50% of taxable pay for all tax code type
Under the new rules, the tax deducted in a single pay period will be limited to 50% of Gross taxable earnings for all tax codes.
Full Payment Submission (FPS)
  • Changes to support new legislation mentioned above
  • Employee address must now be shown on each FPS
Further details showing how QuickBooks manages new legislation will be available nearer the release date of  QuickBooks 2015 R6.

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