As a result of the Chancellor’s September 10p tax amendment
your IRIS GP Payroll software needs to be updated.
Why is there a September update this year?
The Chancellor of the Exchequer has introduced changes to help
people on low-income affected by the abolition of the 10% starting
rate of income tax.
What are the changes exactly?
The Chancellor announced that the personal allowance for the
2008-09 tax year will be increased by £600 from £5,435 to £6,035,
and the threshold at which someone starts to pay higher rate tax
will be reduced by £1200 from £36,000 to £34,800.
When do the changes apply?
The new tax code and tax band come into effect on the 7th
September 2008. Therefore you must you make this change prior to
processing your September payroll (Month 6).
Important Note: Do not make the
change until your August payroll has been processed (month
5).
How do I amend IRIS GP Payroll?
Before you Begin:
Please ensure you are using IRIS GP Payroll
v2008.2. You can check this by looking at the top of the IRIS
GP Payroll screen.
You can download
version 2008.2 here.
Step 1 - Backup your data
We strongly recommend taking a backup of your data before
performing any of the steps below.
Step 2 - Bulk tax code change
If you want to print a report showing the tax
codes before performing the change, click on “Print
employee details” within Setup/Options > Tab 11 ‘Automatic
Change of tax codes’.
- Click on the Setup/ Options button.
- Select “11 – Automatic change of tax
codes”.
- In the box “L codes to be changed by” enter
60.
- Click OK.
- Click ‘Yes’ to the warning message.
- Click ‘OK’ to the confirmation message.
- Click ‘Cancel’ to close the screen and
continue.
Step 3 – Bandwidth changes
Before change
- Click on the Setup/ Options button.
- Select “12 – Tax / NIC Parameters”.
- Click ‘Yes’ to the warning message.
- Ensure you have a yellow tick visible on the
button “Tax/NIC parameters AFTER the May budget
changes”. .
- Enter 34800.00 in “Bandwidth
of standard rate” (should currently show 36000.00)
- Click OK.
After change
All amendments are now complete,
please continue as normal.
If you need to re-calculate
previous month’s payrolls:
It is recommended you make any corrections
during the next pay run and do not re-calculate
any previous months prior to September.
If you have any further questions or concerns
regarding the above please do not hesitate to contact us.
support@gppayroll.co.uk
0844 815 5681
