Tax Credit Processing

From April 2000 until March 31, 2006 employers who operated a PAYE scheme had to pay eligible employees tax credits through the payroll. HM Revenue and Customs (HMRC) informed the employer if an employee was eligible for tax credits, the amount to pay, and when to stop paying tax credits.

Global Payroll for the UK enabled you to:

• Calculate the tax credits for the pay period from a daily date and pay them through the payroll.

• Display the tax credit amount to be paid on an employee's payslip.

• Record the total tax credits paid in a tax year.

• Record tax credits on the P14 and P60 reports.

WARNING:

From April 2006 HMRC is responsible for paying tax credits and employers must not pay tax credits in payroll.