To All PAYdata Users
April 2006
The PAYE Tables change on 18th May, 2006.
The purpose of this document is to describe the amendments you, the user, are required to make to the tables held in your computer system. Read the notes at the end of this document before proceeding. For completeness, both Tax and NI tables are presented.
Timing
The Tax Tables must be amended for payments made on, or after, 18th May 2006.
Computer Tax Tables
Code changes are notified to you by the Tax Office, forms P6(T)and P9(X). Block changes can be implemented using "Automatic Update of Tax Codes", option 7 on the Utilities Menu. Note that this is applied to ALL payrolls on the system. There are no block changes for May 2005. There were for April 2005.
Table Amendment Options
These are to be found in the section "Access Tax, NI & SSP Tables" on the "Utilities Menu". The "Utilities Menu" is accessed by selecting "S" on the "Main Menu".
The following sections correspond to those on the "Tables menu". All values on all screens are shown for the various tables. Those items which are highlighted in bold are the ones which require amendment. However, it is advisable to check all the values.
1. PAYE Parameters
Screen 1
| Non-Scottish | Scottish | |
| No. of Tax Rates | 3 | 0 |
| Rate 1 | 10% | 0 |
| Rate 2 | 22% | 0 |
| Rate 3 | 40% | 0 |
| Rate 4 | 0 | 0 |
| Rate 5 | 0 | 0 |
| Rate 6 | 0 | 0 |
| Rate 7 | 0 | 0 |
| Rate 8 | 0 | 0 |
| Rate9 | 0 | 0 |
There are no amendments on this page.
Screen 2
TAX BAND Parameters
| Non-Scottish Scottish | Scottish | |||
| Number of Tax Bands | 2 | 0 | ||
| Cum. Bands | Cum. Annual Tax | Cum. Bands | Cum Annual Tax | |
| Band 1 | 2150.00 | 215.00 | 0 | 0 |
| Band 2 | 33300.00 | 7068.00 | 0 | 0 |
| Band 3 | 0 | 0 | 0 | 0 |
| Band 4 | 0 | 0 | 0 | 0 |
| band 5 | 0 | 0 | 0 | 0 |
| Band 6 | 0 | 0 | 0 | 0 |
| Band 7 | 0 | 0 | 0 | 0 |
| Band 8 | 0 | 0 | 0 | 0 |
| Band 9 | 0 | 0 | 0 | 0 |
The Figures in bold require changes.
Screen 3
TAX Pointers
| Non-Scottish ‘G’ Pointer | 2 |
| Scottish ‘G’ Pointer | 0 |
| Over-riding Limit %age (K codes only) | 50.0% |
| Max. Tax Code covered by Tables | 500 |
| Student Loans Repayments - Threshold | 15000 |
| Student Loans Repayments - Rate | 9% |
| Date PAYE parameters last changed officially | 18/05/2006 |
The Figures in bold require changes.
2. National Insurance & SSP Parameters
Screen 1
Earnings Limits & Thresholds
| Lower Earning Limit - Yearly | 4368.00 |
| Upper Earning Limit - Yearly | 33540.00 |
| Earnings Threshold - Yearly | 5035.00 |
The Figures in bold require changes.
Screen 2
Percentage Rates
| EE’s Not Contracted Out Rate | 11.00 |
|
EE’s Contracted Out Rate |
9.40 |
|
EE’s Reduced Rate |
4.85 |
| EE's Deferred Rate | 1.00 |
| EE's Over UEL Rate | 1.00 |
| ER’s Rate | 12.80 |
| ER’s Rebate for COSR Schemes - (LEL ÿ ET) | 3.5 |
| ER’s Rebate for COMP Schemes - (LEL ÿ ET) | 1.00 |
| EE’s Rebate for COSR Schemes - (LEL ÿ ET) | 1.60 |
| EE’s Rebate for COMP Schemes - (LEL ÿ ET) | 1.60 |
No values require changing.
Screen 3
Statutory Sick Pay Parameters
| Average Weekly Earnings | Weekly Rate of SSP |
| 84.00 | 70.05 |
| SSP Recovery Rate Percentage | 0 |
| SMP Recovery Rate Percentage | 92 * |
| SPP Recovery Rate Percentage | 92 * |
| SAP Recovery Rate Percentage | 92 * |
| Date NI/SSP Parameters last amended | 06/04/2006 |
The Figures in bold require changes.
* This can be 100% if the employer qualifies for Small Employers Relief.
DISCLAIMER & NOTES
1. No responsibility can be accepted by FARMdata Limited for errors in the calculation of Income Tax or National Insurance deductions arising out of User's failure to maintain their computer tables properly. Neither can FARMdata Limited accept responsibility for errors arising from User's failure to implement program updates or previous payroll parameter changes at the designated times. As Employers, users receive official notification directly from the Inland Revenue of Statutory Payroll changes. These are your alerts that table changes are required in your payroll system.
2. Some of the above changes may be subject to Parliamentary Approval and Royal Assent. Confirmation of the rates will appear in the relevant contribution tables that all employers will receive before the changes come into effect.