Online Services: Payroll Standard Frequently Asked Questions

 

Contents

 

What is the HMRC Payroll Standard?

It is an accreditation scheme for Payroll Software. It consists of payroll requirements that most employers would need. Go to the Payroll Standad page to view or download the document. The Payroll Standard does not include every payroll function so you still need check if the product and services provided by the supplier will meet all your business needs.

What type of payroll software can be accredited?

The accredited software could be a payroll product that you install on your computer, an internet payroll service or any other type of payroll software service that is run by a third party on your behalf.

Any software developer can apply to have their payroll product tested, whether or not it is used by small employers, a large corporation or a bureau. Employers who have developed their own software in-house can also apply.

How can I obtain a copy of an up to date HMRC Payroll Standard?

Go to the Payroll Standard page to view or download the Payroll Standard document.

How often is the Payroll Standard updated?

The Payroll Standard requirements can be updated at any time. Developers with products accredited under the Payroll Standard must keep their products up to date with any changes that are made.

This means that all accredited products will meet all the Payroll Standard requirements regardless of which time in the year the payroll software is purchased.

When is the next update to the Payroll Standard due?

The next version of the Payroll Standard will apply from 1st January 2008. The new Standards will have certain requirements that all accredited products must meet.

From 1st January 2008 the list of accredited products will tell you which optional requirements each products has.

From 1st January 2008 there will also be a Pensioner Payroll Standard that will accredit payroll products that pay out pensions and annuities.

Payroll products that can only pay pensions and annuities are not suitable for paying employees.

Please note that some payroll products may be able to pay employees and pensions/annuities and may display both logos.

Where can I find a list of HMRC Payroll Standard accredited products?

Go to the Payroll Standard and Pensioner Payroll Standard Accredited products and services page.

Has the payroll product I use or intend to purchase been awarded the Payroll Standard accreditation?

For full lists of accredited products go to the Payroll Standard and Pensioner Payroll Standard Accredited products and services page. This details all products that have been awarded an HMRC Payroll Accreditation. Please note that it is the software product that is given the accreditation not the supplier - the supplier may have numerous products and others may not have gone through the accreditation process. The list of accredited products confirms which products and version numbers that are accredited.

We have a Payroll Standard Helpline 0845 91 59146 (calls charged at local rates) if you wish to discuss any concerns/queries you may have around Payroll Standard Accreditation.

What if my payroll product is not accredited?

It means that HMRC have not tested the product against the Payroll Standard. The Standard is a voluntary accreditation scheme so there will be a number of products which are not approved which may still fully comply with current legislation and HMRC specifications.

How long is a Payroll Standard product accredited for?

Accredited products are tested every 12 months to ensure continuing compliance with the Standard.

The 'Date product accredited' field on the list of accredited products (details above) is the date each product was last tested.

Similarly the 'Version number' field on the list of accredited products is the last version tested.

Which Payroll Standard Accredited product should I buy?

The Payroll Standard accreditation scheme is designed to assist you with this decision. HMRC tests the requirements listed in the Payroll Standard and must remain impartial

What protection will using a Payroll Standard accredited product give me if I deduct Tax or NIC incorrectly?

HMRC does not accept responsibility for incorrect use of any accredited product.

However, we recognise that you may encounter problems or maybe uncertain about how to run the product. If you are please contact your supplier in the first instance. HMRC also have online calculators that may assist you, go to the All tools page for more information.

Who do I contact if my accredited payroll software has a fault?

You should always contact your software supplier on your usual helpline to establish if it is, in fact, a fault or perhaps user error or a misunderstanding of the product’s instructions.

Who do I contact if I feel there is a fault with functionality covered in the Payroll Standard?

If you feel there may be a fault with an area covered by the Payroll Standard you can call the Payroll Standard Helpline 0845 91 59146 (calls charged at local rates) or send us an email and we will investigate your query.

What happens to HMRC accredited products following any changes in government legislation or new requirements which affect the Payroll Standard?

Some changes will not affect the payroll functions covered by the Payroll Standard so you will have to speak with your payroll supplier or the HMRC Employers Helpline in these circumstances.

Software developers commit to keeping their products in line with changes to the Payroll Standard during the accreditation period. This means that if any changes occur in areas covered by the Payroll Standard the supplier must also change their product.

What is Recognition?

Recognition proves a software product can send a valid return online to HMRC. Successful submission over the Internet will result in HMRC Internet Recognition for the Software Developers product, but it does not constitute any form of HMRC approval of a product itself. See below for further details.

What is the difference between the Recognition list and Payroll Standard Accreditation?

Recognition means that the payroll product has proved it has the ability to file a valid return or retrieve a form over the Internet. It does not necessarily prove the payroll calculations are correct; only that the online file was correctly formatted and successfully transmitted to HMRC. The Recognition list is a list of payroll products and the electronic data they can send/retrieve online.

Go to the Pay As You Earn (PAYE) Online - software and online forms page.

All accredited products must have been awarded Recognition for P14 and one of the following alternatives:

  • Recognition for the P35,or
  • the ability to provide accurate data to successfully complete the P35.

You will also find other payroll products on the Recognition list that are not accredited.

When awarding the Payroll Accreditation, HMRC test the requirements listed in the Payroll Standard and Pensioner Payroll Standard. - for more details go to the Payroll Standard.

Can I file online using a Payroll Standard accredited product?

Please check with your supplier. Accredited products will at least be able to file your P14’s and provide P35 data. They may also do other online forms but you will either have to ask your supplier about this or look at the Recognition list.

Do Payroll Standard accredited products cater for the Construction Industry Scheme?

This is not covered by the Payroll Standard so you will have to ask potential payroll suppliers about this. You will be able to find Recognition information for CIS on the Construction Industry Scheme (CIS) Online - software and online forms page.

Do Payroll Standard accredited products allow users to do online In Year filing?

Please check with your supplier.

Glossary (Payroll Standard Abbreviations)

AVC - Additional Voluntary Contribution
COMP - Contracted Out Money Purchase
COSR - Contracted Out Salary Related
CA44 - HMRC Booklet “National Insurance for Company Directors”
CIS - Construction Industry Scheme
CWG2 - HMRC Booklet “Employer Further Guide to PAYE and NIC’s”
ECON - Employer’s Contracted Out Number
EDI - Electronic Data Interchange
FSAVC - Free Standing Additional Voluntary Contribution
HMRC - Her Majesty’ Revenue and Customs
ISDN - Integrated Services Digital Network
ISDN - Income support Deduction Notice
LOS - Live Online Services
NI - National Insurance
NIC - National Insurance Contributions
PAYE - Pay As You Earn
SAP - Statutory Adoption Pay
SCON - Scheme Contracted Out Number
SDST - Software Developers Support Team
SMP - Statutory Maternity Pay
SPP - Statutory Paternity Pay
SPP(A) - Statutory Paternity Pay for adoption
SPPbirth - Statutory Paternity Pay for new born children
SSP - Statutory Sick Pay
VAN - Value Added Network