PAYE Online for Employers - Electronic Data Interchange (EDI)

Frequently asked questions

Listed below are links to the most frequently asked questions from customers who have used the service.

Frequently asked questions: setting up EDI

Contents

Q. What equipment will I need to use EDI?

A. There are two main formats used when online PAYE information is exchanged with HM Revenue & Customs (HMRC), EDIFACT and Generic Flat File (GFF). You will need the following for each format:

  • connection to a communication link, such as a Value Added Network (VAN), AS2 or ISDN
  • EDI software (enabled for electronic exchange for PAYE)
  • Odette File Transfer Protocol (OFTP) software to send data over ISDN
  • Payroll software (enabled for electronic exchange for PAYE)

Q. How soon could an employer start sending forms online once they have Payroll, EDI and Communication software?

A. Very soon. Before this can happen there is a mandatory testing process for the employer. It involves completing four successful consecutive tests per PAYE message type. If certificated software is used, only one successful test is needed. There is also a consultation process where HMRC representatives can give advice and support. Contact Online Services for more information.

Q. Where can I get a list of successfully tested EDI and/or Payroll software developers?

A. View a list of HMRC recognised products. These products can exchange online versions of PAYE forms and returns in the right way.

Q. Does HMRC have a preferred online communication method?

A. No. HMRC currently support:

  • AS2 Applicability Statement 2
  • Value Added Network
  • Odette File Transfer Protocol over ISDN
  • X.400

Please see EB4 (PAYE-EDI) 'Software developers' (PDF 156K)

The names and addresses of suppliers can be found at PAYE Online for Employers: EDI software and forms

Q. What is Integrated Services Digital Network (ISDN)?

A. High Speed Digital connection for passing data online between two organisations.

Q. We have existing ISDN capabilities, can this be used?

A. Yes, you are simply calling a different number. However if you want to send Odette File Transfer Protocol (OFTP) over your ISDN line, it is important to approach a supplier of OFTP software for advice on where it needs installing in your system.

Q. Will VANs support an ISDN Connection?

A. Generally yes. Remember the need to install software such as Odette File Transfer Protocol to transmit the data.

Frequently asked questions: cost

Contents

Q. How much does a Value Added Network (VAN) cost?

A. Organisations are advised to discuss costs with their potential VAN supplier as there may be an opportunity to negotiate cost based on likely transaction volumes.

The commonly used VANs, with the relevant contact details, can be found at PAYE Online for Employers: EDI software and forms.

Q. How much does EDI software cost?

A. The cost of EDI software varies depending on the EDI software supplier chosen. There are basic PC-based packages to large-scale corporate communication gateways.

View a list of HMRC recognised products

Q. What does ISDN cost to install?

A. This can vary and organisations are advised to discuss costs with their potential supplier.

Q. How long does it take to install ISDN?

A. Anything from two days to four weeks, this will depend on the communications supplier.

Q. What are the ISDN call costs?

A. The cost varies, but generally they are not much more than normal telephone calls.

Frequently asked questions: testing and errors.

Contents

Q. What is the length of time between an employer registering for PAYE Online for Employers - EDI and being set up to test?

A. There is no set period for the length of time taken between registering and the set up for testing. There are many important EDI issues to discuss before testing is considered and it is worthwhile contacting Online Services who will provide guidance and advice.

Q. During testing, what are the causes of message rejections?

A. During testing, message rejections are caused by translation failures, which are due to syntax errors. This is where the format of the data does not match the format specified in EB5 (PAYE) - Message Implementation Guidelines. If any interchange transmitted by the employer to HMRC contains an error, this will be reported to the sender.

Typical problems are bad characters, that is characters that are not in the published character set for the message, missing mandatory data, incorrect sequence of data and for GFF messages, incorrect field lengths.

Q. What should an employer do if an error is reported back to them?

A. After correcting the reported error, the employer must then re-send the message or entire interchange if this was agreed by the employer. For example, if an employer intends to send interchanges containing many messages, the employer can select the rejection level to be either message or interchange.

Message rejection level is where, if an error occurs within a message, only that message is rejected and processing continues for all other messages within the interchange. Only rejected messages are then re-sent. Interchange rejection level is where, if an error occurs within any message in the interchange, the entire interchange is rejected and the employer must then re-send the entire interchange.

For further information refer to EB5 (PAYE) - Message Implementation Guidelines document

Q. Why would messages that are live be rejected and what is the percentage of message rejections?

A. Once a message is live errors should not occur, since the message should have undergone thorough testing.

However, errors could occur if there is a change at the employer end, such as the EDI or Payroll software or, if the test data was not automatically generated during the testing phase.
If test data is taken from a 'test system', problems can occur when the move to live operation takes place. This is typically due to bad characters within the live system, a data cleanse or some pre-validation of the data being taken will help to reduce the problem. As data is constantly being added to the payroll this may be required on a regular basis.

Frequently asked questions: security

Q. How secure is EDI?

A. All communication between the employer and HMRC is delivered through trusted (authorised certified bodies) third party network providers, ie, Value Added Networks, or uses other direct communication methods, eg, X.400, Integrated Services Digital Networks.
Documentation regarding security of data is available from the individual communication software suppliers.

The names and addresses for these companies are at PAYE Online for Employers: EDI software and forms.

Q. How can we keep track of what has been sent and when?

A. ASPIRE, on behalf of HMRC, has a tracking system that monitors all files sent and received. This also includes acknowledgement receipts between HMRC and the employer.

'Rejected' messages receive an acknowledgment with an error report attached.

Only mandatory online filing forms attract acknowledgments for 'accepted' messages.

Frequently asked questions: compliance and PAYE procedures

Q. Will penalties be imposed if HMRC filing deadlines are missed, for example, if there are technical difficulties, which prevent end of year information being filed on time?

A. This depends on where the technical difficulties are found. If the technical difficulties are not with the employer, penalties can be avoided by providing proof that the correct data was sent on time.

Q. When a new employee joins an organisation earning below the tax threshold and then they exceed the threshold, due to a pay increase, what does the employer do?

A. The employer needs to send a P46 to HMRC so that a tax code number can be issued for the employee.

Q. What should an employer do when data is received relating to an ex-employee or an unknown employee?

A. If the employee has left, the employer should check that a P45(1) has been sent to the appropriate HMRC office. If it has, or if the employee is unknown, the employer should contact the appropriate HMRC office for advice.

Frequently asked questions: processing and technical matters

Contents

Q. What is the Tax Code field length and where is it held?

A. With EDI tax codes must be no longer than seven characters. There must be no leading zeros or spaces (with the exception of the '0T' Tax Code, where the '0' precedes the 'T' as part of the code value) and no trailing spaces.

The Tax Code is held within the ALC segment of both the 'MOVDED' and 'CONTRB' messages.

For further information refer to EB5 (PAYE) - Message Implementation Guidelines document

Q. Where is the Scottish Variable Rate (SVR) Indicator held?

A. The SVR Indicator is held within the ATT segment associated with the ALC segment of the 'MOVDED' message.

For further information refer to EB5 (PAYE) - Message Implementation Guidelines document

Q. Are the bulk code changes (P7X and P9X) included in the scope of EDI?

A. No. P7X and P9X bulk code changes guidance notes are not included in the scope of online filing for PAYE.

Q. What is an EDI interchange?

A. An EDI interchange (UNB-UNZ) is an online envelope, and contains the addressing information of the sender and receiver.

A single EDI interchange may contain one or more EDI messages.

For example, an interchange can contain one EDI message, such as:

  • a 'MOVDED' for Tax District 1 and PAYE reference 1

Or alternatively, an interchange can contain many EDI messages, such as:

  • a 'CONTRB' for Tax District 1 and PAYE reference 1
  • a 'CONTRB' for Tax District 1 and PAYE reference 2
  • a 'CONTRB' for Tax District 2 and PAYE reference 3

The way in which an interchange is applied is the choice of the Trading Partner to suit their own administration purposes.

For further information refer to EB5 (PAYE) - Message Implementation Guidelines document

Q. In terms of exchanging information online, what is a file?

A. For the purpose of EDI, a file is the mechanism in which data is enveloped together and transmitted from a sender to a receiver across a telecommunication link, such as a VAN, AS2 or ISDN. A file contains one or more EDI interchanges.

For further information refer to EB5 (PAYE) - Message Implementation Guidelines document.

Q. What is a Message Implementation Guide (MIG)?

A. A MIG provides both the Generic Flat File formats and the EDIFACT format of PAYE documents.

For further information refer to EB5 (PAYE) - Message Implementation Guidelines document

Q. What is the limit on the cash fields for ex-employees, as this is not included in the new MIG?

A. All monetary values must be provided in pence even when the usual business requirement is for the whole pound (£), eg, the value £123,456 must be presented as 12345600 within the MOA segment.

For further information refer to EB5 (PAYE) - Message Implementation Guidelines document

Q. What is an EDI message?

A. Each EDI message (EDIFACT UNH-UNT or four star headed GFF message) contains information for only one single employer, Tax District (and Bureau), but may contain the PAYE documents for one or more employees. For further information refer to EB5 (PAYE) - Message Implementation Guidelines document.

Q. What actions should a bureau take when adding or removing an employer from the scheme or their portfolio?

A. Notify HMRC Online Services.

Frequently asked questions - help available

Q. Where can I get more help and information?

A. HMRC Online Services
Accounts Office
Victoria Street
Shipley
BD98 8AA

Or contact the Online Services Helpdesk.