Summary of Payroll Upgrades 2016

January 16th, 2016

Summary of Payroll Upgrades 2016

The Opera 3, Opera II and Capital Gold Payroll Upgrade release due in February will cover the legislative changes required to complete the 2015/2016 year-end and to start the 2016/2017 tax year. Release numbers will be as follows: - Opera 3 (2.30)

  • Opera II (7.50)
  • Capital Gold Payroll (4.01)
  • Online Filing Manager (3.60)

Summary of Changes for 2016: - Abolition of Employer's NI for Apprentices aged under 25

  • Employment Allowance increase to £3,000 per year
  • If the staging date is on or after 1 January 2014, the registration date can be up to five months later. This increases the previous 5 month timescale in which employers had to register with the Pensions Regulator.
  • Abolition of Contracting-Out of the State Second Pension
  • Company Car Fuel Type E is no longer an option for reporting car benefits
  • Female State Pension Age changes
  • NEST Hold-onto Contributions and File Format changes
  • Direct Earning Attachment (DEA) Order - a new variant referred to as 'Higher Rate DEA'
  • Scottish Earnings Arrestment & Current Maintenance Arrestment Court Orders have new rates and bandwidths
  • Scottish Rate of Income Tax (SRIT)
  • Payrolling of Benefits - Employers can now voluntarily payroll certain benefits
  • Student Loan Deductions - introduction of a Plan 2 for deductions against a new £21k threshold. Threshold for the existing Plan 1 has been uplifted
  • Removal of certain tax code suffixes
  • RTI: FPS and EPS submissions uplifted with the new payroll changes
  • Removal of Additional Statutory Paternity Pay
  • Electronic P60 formats have been updated and approved by HMRC
  • PAYE, NI and Statutory Payments - rates, bandwidths and thresholds updated
  • Auto Enrolment thresholds uplifted for the 2016/2017 tax year

If you have any questions please do give us a call on: 0117 9231133 or email