HMRC have announced a change to the ‘normal’ working hours bands that are reported in the RTI Full Payment Submission (FPS).
From the start of the 2014/15 tax year, which will be first payment date in the tax year, there is an additional reporting band. The band is being introduced to validate a claim for Working Tax Credit. Legislation requires a claimant to report hours worked up to 24 per week, however the current FPS does not identify this.
From 2014/15 the bands to be reported on the FPS will be:
|A||Up to 15.99 hours|
|B||16 to 23.99 hours|
|C||24 to 29.99 hours|
Employers should confirm with their payroll software provider if a software update will be provided to automatically move employees into the appropriate band. If this is not possible then the payroll will need to be manually updated. Time should be planned to complete the exercise and ensure the correct hours are reported from the first payment date in the 2014/15 tax year.
If you have any RTI queries or would like more information on this area please contact Neil Cameron, Payroll Manager by email to firstname.lastname@example.org or call 0131 558 5800.