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Payroll Upgrade: Key changes

We are pleased to announce the Payroll Upgrade for Opera 3 and Opera SE for completion of the 2024/25 tax year and for processing within the forthcoming payroll year. The changes include all statutory changes required to complete the Payroll Year End and include the following areas:

Statutory Neonatal Care Pay/Lease (SNCP) 

This is designed for parents whose newborn requires neonatal care in the first 28 days post-born. SNCP offers qualifying parents up to 12 weeks of paid leave, which can be claimed flexibly based on individual circumstances. This allowance is structured to complement existing statutory entitlements, including maternity and paternity leave, thereby extending the support available during this critical period.

Employer Payment Summary (EPS) changes

• From 2025/26 HMRC advise that the “State aid rules don’t apply” checkbox should be ticked.  From the start of the new tax year, the software has been changed to default to the checkbox ticked if the button for “Starting to claim or already claiming for 2025/26” is selected.

Full Payment Submission (FPS) changes

• Employee Workplace Code for employees who have a NI code associated with either a Freeport or an Investment Zone.
• Value of Statutory Neonatal Care pay (SNCP) to date

Flexible drawdown Pension types

• Pension commencement excess lump sum indicator and associated values will be included in the file from 2025/26 if included in an employees pay for the period.
• Standalone lump sum indicator and associated values will be included in the file from 2025/26 if included in an employees pay for the period.

Prior Year FPS Changes

From the 2025/26 tax year, Prior Year FPS submissions can be made with amendments to NI codes or values that relate to employees taking National Insurance relief from being employed within an Investment Zone.

Lifetime Allowance (LTA)

In addition to the three existing checkboxes for the pension drawdown types in Payroll Processing, two more will be introduced in relation to LTA changes:

• Pension Commencement Excess Lump Sum
• Stand Alone Lump Sum

Payments for these additional pension types are processed in the same way as for example, a Serious Ill Health Lump Sum is recorded.

Scottish Arrestment Changes

To cater for the change in the calculation of Arrestment Orders a utility will be released in readiness for the changes effective 6^th April 2025.  The changes will be available in the next update of Opera 3 and Opera 3 SE. 

Next steps…

Payroll customers will be contacted in due course by their accredited Pegasus Partner who will facilitate the upgrade.

 

Posted On: February 24, 2025