HMRC has announced that support for PAYE transactions through the EDI channel will cease at the beginning of the 2018/19 tax year
You may be aware of a recent HMRC announcement that support for PAYE transactions through the EDI channel will cease at the beginning of the 2018/19 tax year, in April 2018. In your payroll solution, this will affect the submission of RTI data (FPS and EPS) and the receipt of tax code changes from HMRC.
If you’re an EDI user, HMRC should contact you over the next few weeks to discuss a transition to the internet channel, which from 2018 will be the only method of submission.
You may have originally chosen EDI because of the relatively small (25Mb) file size limit which applies to internet submissions. HMRC tell us this limit is to be raised, allowing much larger submissions.
Changing from EDI to internet will involve some configuration and operational changes in your payroll solution. In addition you may need to make changes to your IT infrastructure (such as your firewall) to enable your solution to connect to the relevant HMRC systems.
You need to plan to make the change at some point prior to April 2018. We would recommend you do this at your earliest convenience - it can be done at any time (not just at year-end) and transitioning while EDI remains supported by HMRC gives you a safety net in that you could revert to EDI, should any issues arise during the transition. If you wait until April 2018, this option will not be available.