As per recent HMRC guidance, since the introduction of RTI, if an employee is starting work under a different tax (PAYE) reference, then HMRC treats this as a new employment. As such, he/she should be treated as a new employee and normal new starter rules apply to Income Tax, National Insurance and Student Loans.
The HMRC guidance before the introduction of RTI was different. Previously, in case of a mid-payroll period transfer from one tax reference to another, in the first payroll period after the transfer to the new tax reference, GB payroll forced retro-active payroll to clear down Income Tax, NI and Student Loans (for pay periods during the same payroll period in the previous tax period as the payroll period being payrolled) and brought forward the Taxable Pay and NI'able Pay (for pay periods during the same previous tax period as the payroll period being payrolled) to the current period where they were taken into account during the Tax, National Insurance and Student Loan calculations in the current period.
With the introduction of note 2526028, this solution has now been removed and the payroll follows the HMRC guidance, since the introduction of RTI.
The P45 reports (RPCP45GNRTI_PBS, RPCP45GNRTI) split the Tax Data GB infotype (0065) with the Pay Date of the first payroll period under the new Tax Reference or the date that the Tax Reference changed, which ever is later.
- Human Capital Management (HCM)
- SAP R/3
- SAP R/3 Enterprise 4.7
- SAP ERP Core Component
- SAP ERP
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MPT, Mid-Period Transfer, Mid Period Transfers, Mid-Period Transfers, No change to payr.area & until &; paydays must be in ascending order, RPCALCG0, NICs, GBMPT, ST, P45 taxable pay, P45 tax paid, Aggregation, Cleardown, RPCP45GNRTI, RPCP45GNRTI_PBS, IT0065, PRDAT, IT0003 , KBA , PY-GB , United Kingdom , How To
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