Prior year adjustments after moving payroll systems

Hi, We are soon moving to a new payroll system, and one of the issues we are facing is that we can't migrate any historic pay information. This causes us an issue, as we regularly have to amend prior year RTI submissions due to late notification of death. We have a large payroll (50k+) but generally only amend around 40 records each year. That said, we do sometimes have to go back several tax years. We are not likely to have access to the current payroll system, so have been looking at alternative solutions. Will the Basic PAYE tool be suitable for our needs? Especially considering the volumes and need to go back several tax years? Looking at the HMRC website. it reads like we may be able to use the tool alongside the new system, certainly for adjustments prior to April 2021. Has anyone else had this issue, and how did you approach it? Many thanks

Hi PensionerPayroll,

The Basic PAYE tools can only accomodate up to 9 employees, so may be unsuitable for your requirements.
First time users: download and install Basic PAYE Tools

Thank you. 




 

Hi HMRC Admin 25, Thanks for your response. From what I've read here: https://www.gov.uk/government/publications/basic-paye-tools-earlier-year-update-alongside-commercial-software/using-basic-paye-tools-with-other-software-earlier-year-update I thought it was possible to use the tool. It states 'the number of employee submissions you can send is not limited' - which I read to mean that we are not limited on employees, but should it be that it's a maximum of 9 employees but we can send multiple submissions for each? Do HMRC have a recommended approach for sending Earlier Year Updates when moving payroll systems? Our new provider is unable to accommodate the historic information, and the existing software is being decommissioned as it's not longer supported. Many thanks

Hi PensionerPayroll,

Maximum Employees

BPT is designed to have a maximum of nine employees
BPT allows for flexibility within the workforce during the tax year and will accommodate up to 15 employees during the year
It is not advisable to start the year with 10 or more employees
You have difficulty switching to a commercial product midway through the tax year if you go above 15 employees
If you have a leaver noted in BPT they do not count towards the maximum of 15 employees allowed
You can find a list of commercial software providers at Find payroll software that is recognised by HMRC

Earlier Year Update

If you are using Third party Software, there is no recommended approach I can provide

Thank You.