Object documentation Tax Credit GB (Infotype 0757) 

Definition

This infotype allows you to record an employee's tax credit details.

Use

The employee's tax credit details recorded in this infotype are used to calculate the tax credit payment to the employee for the specific pay period. The amount calculated is added to the employee's net pay and shown separately on the employee's payslip.

 

Note

The infotype is currently set up to pay the Working Tax Credit to employees who have been awarded this tax credit by the Inland Revenue (IR). It will be amended accordingly, as and when changes occur to the IR tax credit system.

 

Structure

 

The following data must be entered into infotype Tax Credit GB (0757):

 

Start Date (Valid From)

 

Enter the start date for payment of the tax credit which is given on the start notice received from the IR. From this start date, an employer becomes responsible for payment of the tax credit to the employee.

 

End Date (Valid To)

If you have received a date after which a tax credit is no longer payable to the employee, enter this date. If there is no information about the last date of payment, enter the default end date of 31.12.9999. If the end date given by the IR on the relevant start notice is equal to the start date, this means that the tax credit is only paid for one day.

 

Daily Rate

In the Tax Credit Details group box, enter the daily rate of the tax credit. This amount is also specified on the start notice, which must be paid from the start date until you are informed by an IR notice to stop such payments. You must begin to pay the daily rate from the start date specified on the start notice. The daily rate provided by the IR varies depending on the employee's personal circumstances.

 

Caution An employee cannot have more than one daily rate for WTC Payments within the same infotype validity period. Therefore, you must create a new infotype 0757 record for each new daily rate he or she receives.

 

 

You can also enter optional details of start and stop notices for tax credits that you have received for each employee. For each start or stop notice, you can maintain the following information in the respective Start or Stop Notice Info group boxes on this infotype:

 

q  Reason for starting/stopping payment of the tax credit

q  Issue number of the tax credit notice

q  Date the notice was issued by the Inland Revenue

q  Date that you received the notice

 

Once you have created and saved your new Tax Credits GB (Infotype 0757) record, the system calculates the amount of tax credit to be paid to the employee per payroll period by multiplying the daily rate you have entered by the number of calendar days in the payroll period.

 

Note

If an employee takes unpaid leave for a period of time which is less than a complete payroll period, or if he or she is involved in a trade dispute which lasts less than a complete payroll period, then the tax credit should be paid in full.

 

 

See also:  Working Tax Credit as of April 2003

 

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