What is PAYE Recognition?
Why is HMRC introducing PAYE Recognition?
What is the benefit for me?
What will this cost?
What is changing in the new PAYE Recognition?
Will software accredited under the Payroll Standard and Pensioner Payroll
Standard have to be re-tested in 2011-12 for PAYE Recognition?
How and when can we apply for PAYE Recognition?
For subsequent years how will you decide if the PAYE Recognition requirements
have been met?
Will PAYE Recognition for the payroll values include an onsite
testing visit at the developer’s premises?
Is PAYE Recognition open to Real Time Information products?
PAYE Recognition instructions and scenarios
The new PAYE Recognition Scheme promotes the use of commercial payroll software products to file online with HMRC. They work with an ever widening range of developers, testing their software and helping them to resolve issues that might cause problems for employers and for HMRC. Software products that have gained PAYE Recognition have passed some basic payroll tests and the Software Developers Support Team (SDST) will support developers through this process.
HMRC is providing a scheme that is more flexible than the accreditation schemes. This will allow HMRC’s SDST to work with a broader range of payroll software developers. Like the accreditation schemes, the new scheme will also give employers some assurance about the values being calculated for tax, National Insurance contributions and statutory payments.
Provided that your product can pass HMRC's tests, it will appear on the list
of 'recognised' products on the HMRC web pages. Employers who wish to purchase
payroll software are encouraged to consult this list:
Pay As You Earn (PAYE)
Recognition - for payroll software and online forms
There is no charge for this service.
The previous process to get Recognition for PAYE related functions like P14/P35 and in-year movements etc has not changed. But it has been enhanced by adding another strand of testing to check some basic payroll calculations. Software products that achieve this will have 'basic payroll values checked' added to the list of functions that have gained recognition. The existing entries for other PAYE related functions on the list will remain unchanged.
No. All currently accredited software will be deemed to have met the PAYE Recognition requirements for the payroll values check for the 2011/12 tax year. Their entry on the recognition list will be updated.
Applications can be made now by sending an email to the SDS Team
The process of gaining PAYE Recognition is similar to the current Recognition Scheme. Developers will run recognition test scenarios through their payroll software and submit the outputs to the Vendor Single Integrated Proving Service (VSIPS) or the Electronic Data Interchange (EDI) test service.
The test files will be emailed to SDST so that they can check the structure and content of the messages including the payroll values. As with the current Recognition Scheme, developers only need to run the scenarios that their software supports.
The same scenarios can be used to get recognition for the payroll values, P14/P35 and in year movements.
The first stage will be to check that the submissions pass all validation rules and that the test results supplied to SDST are acceptable.
PAYE Recognition for the payroll values will be subject to annual re-testing to ensure any changes to NI, tax and statutory payments rates/bandwidths/thresholds have been incorporated correctly.
Additionally, the recognition award for any of the PAYE strands will also be subject to an ongoing HMRC assessment of data issues or errors submitted to HMRC in the live environment.
HMRC has a responsibility to take reasonable steps to ensure that software on the PAYE Recognition list is fit for purpose. Where SDST feel improvements to the software are needed, we will seek a commitment from the developer to make these changes before awarding PAYE Recognition. SDST will continue to work with developers to achieve recognition for their products.
No. However, SDST will contact and work with the developer to resolve any issues with the test results.
Once these are resolved and there are no significant issues, the PAYE Recognition list will show 'basic payroll values checked', along with any other items the software has recognition for.
RTI products will be able to apply for PAYE Recognition. However, the RTI test scenarios for PAYE Recognition are still under development. If you wish to apply you can send an email to SDST to register an interest and we will let you know when the RTI test scenarios are available.
If you have any further questions please contact the SDS Team
