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Purpose

The purpose of this Wiki article is to provide a description of how the Leaving Date of an Employee is reported to HMRC via the FPS report in different scenarios of a Tax Reference change.

Overview

Each Payroll area is assigned to a given tax district number/indicator in table T5G51. This way, each Employee is assigned to a given tax district indicator via their Payroll area. A Tax Reference change can be described as a change of an Employee's assigned tax district indicator from one to another. When such a change occurs, the date of it is required to be reported to HMRC. This article provides information of how this is done via the FPS report after the implementation of RTI (Node 11 of Feature GBCHG activated).

Description

Previously, when an employee transferred from one tax reference to another, it was only possible to correctly report this to HMRC via FPS when it occurred in the current period. If the tax reference change was not reported in the relevant period, this resulted in the Leaving Date not being reported to HMRC. This has been fixed by changing the FPS report. In the latter scenario, it now produces an extra record in the B2A Manager containing the Leaving Date.

Note: If the tax reference change is done in the current period, the FPS report will process as normal and a single file will be created containing the Leaving Date in the current period.

Example of a scenario where the transfer was NOT reported in the period it related to

Payroll areas are assigned to tax reference indicators in V_T5G51.

Steps: 

- EE is in PY area ‘-A’ which is assigned to tax reference 991/0355032.

- The PY is run for the month of April for PY area ‘-A’.

- FPS is submitted to HMRC for PY area ‘-A’.

- After PY area –A has been exited, a transfer to PY area –B with an effective date of 01.05.2015 is entered. PY area –B is assigned to a different tax reference - 991/SZ90723.

- Report RPCP45GNRTI is processed and Infotype 0065 is updated with the P45 issued date and a new record in IT0065 is created from the date of transfer with the P45 information.  Note: The P45 itself is not produced.

- PY is run for the month of May for the PY area ‘-B’.

- FPS is run for the EE for PY area ‘-B’.

- 2 FPS files will be created (One for tax ref 991/0355032 with the employee’s leaving date and the other for tax reference 991/SZ90723 with the employee’s start date) but can only be viewed in the B2A Manager.

 

In this case, you will see 2 entries in the B2A manager – one for each tax reference.

 

 

One for the old tax reference where the leaving date of the old tax reference is reported in the XML…

 

 

…and another one for the new tax reference where the start date of the new tax reference is reported.


 

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4 Comments

  1. My customer is saying that HMRC insist on new employee numbers when an employee moves from one tax reference to another, but this wiki, and certain other SCN posts are debunking this. I'm wondering how I can definitely prove to the customer that a hard leaver / new hire process is not necessary when changing tax references.

    Any suggestions?

    1. Hello Chris,

      If an employee is transferred between tax references (e.g. using an Organizational reassignment Action) correctly, the FPS reports a Leaving date against the old tax reference and a Hiring date against the new one.
      Also, when you run the P45 program for the employee, the leaving date is stamped onto the relevant IT0065 record and a new record is created.
      Was reporting/ recording this data your customer's concern? If it was, you can show them the FPS XMLs created and the IT0065 records as discussed on this Wiki page.

      Best regards,

      Gabor

       

      1. Thanks - yes, reporting is their main concern, so I'll do as you suggest and show them the XMLs.

        I don't suppose you have any confirmation from HMRC themselves that the data in the XMLs was all accepted? It seems to be HMRC that are giving incorrect information, and that has what has caused the customer to question this approach.

        Chris

        1. Whether the specific XML you have created is accepted by HMRC or not can be tested using the 'Test in Live' functionality of FPS. This way, test XML created by FPS can be submitted to HMRC via the B2A manager before a live submission is made. This is the recommended practice so that you can rectify any errors that HMRC may send back if it does not pass their validations.

          Best regards,

          Gabor