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Configure manual rate changes for year end

Set the manual rates for the new tax year.

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Written by Onyema Onyejekwe
Updated over 2 months ago

Once you've processed your payroll year end, there are some legislation rates that you need to update manually. To do this, follow the steps in portal for each section below.

📌Note: You need to ensure the rates in your software match the rates on HMRC's website.

Apprenticeship levy

Before processing your first payroll for the new tax year, the following rates need to be configured. To update the apprenticeship levy rates, follow the steps below.

  1. Click Settings then under UK Tax Rates, click General.

  2. Click Other then, from the Select Detail drop-down menu, double-click Apprentice Levy.

  3. In the Tax Year field, enter the current year.

  4. Amend the rates as required then click Save.

  5. Under Select, click Company Parameters.

  6. Set the threshold and pay code for each company in your organisation.

  7. Click Save.

Employment Allowance

To update the employment allowance (EA) which allows eligible businesses and charities to reduce their employer's class 1 NIC liability, follow the steps below.

📌Note: You need to check you qualify for Employment Allowance before you enable it in PeopleXD Payroll.

  1. Click Settings then under UK Tax Rates, click General.

  2. Click RTI then, from the Select Detail drop-down menu, select Company Allowance.

  3. For each company you need to claim for, under Employee Allowance, select Yes.

  4. Under Employer Sector for State Aid Rule, select the relevant sector.

  5. Click Save.

Statutory rates and emergency tax code

To update the new current and previous year statutory rates, follow the steps below.

  1. Click Settings then click General.

  2. Under General, update the following fields:

    • Current Year Statutory Rate.

    • Previous Year Statutory Rate.

    • Emergency Tax Code.

    • NIC Compensation Percentage.

    • Default Tax Codes.

  3. Click Save.

Student and postgraduate loans

To update the new student loan plan thresholds, follow the steps below.

  1. Click Settings then under Codes, click Pay Codes.

  2. Search for the relevant student or postgraduate loan pay code.

  3. Click the three-dot icon then click Edit.

  4. Click Rules then search for the student or postgraduate loan rules.

  5. Click Edit then update the values.

  6. Click Next then click Save.

Council tax

To set up the required council tax rates for the new tax year, follow the steps below..

  1. Click Year End then click System Legislative Rates.

  2. Click Council Tax Rates.

  3. From the Pay Code drop-down menu, select the council tax pay code.

  4. Update the rates as per your local council tax rates then click Save.

Direct earnings attachment (DEA) and deduction from earnings order (DEO)

To set up direct rates for the new tax year, follow the steps below.

  1. Click Settings then under Codes, click Pay Codes.

  2. Search for the relevant DEA or DEO pay code.

  3. Click the three-dot icon then click Edit.

  4. Click Payment Orders then enable the Nett Earnings toggle.

  5. Update the rates as required then click Next twice.

  6. Click Save.

When you do this, the Nett Earnings indicator calculates as council tax, which excludes non-taxable earnings. You need to disable the indicator after you've saved the new rates. To do this, follow the steps below.

  1. Click Settings then under Codes, click Pay Codes.

  2. Search for the relevant DEA or DEO pay code.

  3. Click the three-dot icon then click Edit

  4. Click Payment Orders then turn off the Nett Earnings toggle.

  5. Click Next twice then click Save.

Scottish Arrestment Order

To set up the Scottish arrestment pay order rates for the new tax year, follow the steps below.

  1. Click Settings then under Codes, click Pay Codes.

  2. Search for the Scottish Arrestment Order pay code.

  3. Click the three dot icon then click Edit.

  4. Click Payment Orders then update the rates.

  5. Click Next twice then click Save.

Maximum redundancy rate

To review the maximum redundancy rates for the new tax year, follow the steps below.

  1. Click Settings then under UK Tax Rates, click General.

  2. Under Redundancy, update the rates then click Save.

Auto-enrolment thresholds

You need to review and update any pension scheme rates for the new tax year, including:

  • Lower earnings limit (LEL) and upper earnings limit (UEL) thresholds.

  • Banded scheme type tiered rates.

To do this, follow the steps below.

  1. Click Settings then under Codes, click Pension Scheme.

  2. From the Pension Code drop-down menu, select a pension scheme.

  3. Click Next then click LEL/UEL.

  4. Update the Annual LEL and Annual UEL fields as required.

  5. Click Save.

Employee tax codes

Depending on whether there are changes you may need to uplift tax codes for all or some of your employees.

📌Note: You need to do this before you load tax certs from HMRC.

National minimum wage

To check the national minimum wage, national living wage and London living wage for the new tax year, check HMRC's guidance.

HR admin wage warning

If you use the HR admin wage warning or the payroll minimum wage validation report, you need to update the Wage Warning Setup to include the new rates. To do this, follow the steps below.

  1. From the dashboard menu, click People Management Dashboard.

  2. Click Data Centre then click View All.

  3. Under Organisation Rules, click Wage Warning Setup.

  4. Add the new rates to the following tabs:

    • Minimum Wage.

    • Living Wage.

    • Apprentice Wage.

  5. Click Save.

RTI payment pay codes

RTI requires reporting on specific types of payments. To check the correct reporting requirements, follow the steps below.

  1. Click Settings then click General.

  2. Click RTI.

  3. From the Select Detail drop-down menu, select Payment Pay Codes.

  4. Highlight the relevant pay codes then enable the indicators for each type of payments if applicable.

  5. Click Save.

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