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December 2011

HMRC aims to improve employer data quality

HMRC is contacting employers to offer their help to improve PAYE information.

Targeted Employer Support (TES) will see at least 1,000 employers identified by HMRC as having the most issues with data quality.

TES involves a tailored face-to-face visit from a HMRC representative to work together with the employer to rectify data quality problems.

Analysis shows that the key issues are matching data sent by employers with HMRC’s records.

The research concluded the main causes of data matching errors with HMRC records are:

• National Insurance Number (incorrect or missing)
• Date of Birth (Incorrect or missing)
• Name (incomplete, misspelt or even made up)

HMRC’s Stephen Banyard, Acting Director General for Personal Tax, said:

“We want to work in partnership with employers to improve data quality. There are wins for both parties from better data quality.

Pilot visits have shown that this face to face support can make a real difference to the quality of data we receive from employers and consequently will greatly assist the coming move to Real Time Information (RTI).

Every year, employers send PAYE data to HMRC. While most is accurate, mistakes can be made. This can cause problems for employees such as wrong amounts being deducted from their pay. It can also use up valuable employer and HMRC time and money putting the error right.

HMRC is working hard to get data quality ready before RTI comes in and, as well as TES visits, we will improve the communications and guidance we provide on this subject.

The pilots have gone really well and helped HMRC shape the materials used in interaction with employers.”

The rollout follows a successful pilot between July and October 2011 with 12 employer schemes.

For more information about this or how Prime can assist you with your payroll, please contact us today.