Real Time Information update
As an update on Real Time Information (RTI), I have identified 3 different areas that are causing concern for people running their own payroll. It would be beneficial to familiarise yourself with these issues so that you are aware should you have any problems.
If Prime currently runs your payroll, then you don’t need to worry, just send us in any correspondence you receive from HMRC.
Real Time Information and annual schemes
HMRC had been having issues since April 2013 with requests from employers asking that they change the status of their PAYE schemes to annual.
They were unable to process these requests and were expecting employers to file a 'nil' Employer Payment Summary (EPS) by the 19th of each month until they could get the problem corrected with their systems.
HMRC have now published an update to inform employers and agents with Annual Payrolls requests pending, that a fix is now in place and they can once again receive requests.
There is specific Criteria that must be met in order for an annual scheme to be set up with HMRC:
• all the employees must be paid annually
• all the employees are paid at the same time/same date
• the employer is only required to pay HMRC annually
To read more on this please click here.
Real Time Information report
HMRC have published a report which summarises the findings from the RTI Pilot.
The main issues that have been highlighted are:
Duplicate employments - The RTI pilot identified a number of situations where erroneous duplicate employment records were created by HMRC’s systems.
Debt Collection calls to employers – Many employers were failing to inform HMRC via the EPS (Employer Payment Summary) of recoveries from their PAYE. HMRC then expected a higher amount and telephoned employers for the shortfall.
The link for this report is available here.
RTI Submissions and Hours worked
Now that employers are well into submitting RTI returns HMRC are trying to get the message across on the importance of employees hours worked:
It is important to record the correct number of hours your employees normally work to help ensure that they receive the right amount of benefits and tax credits they are entitled to.
In particular, you should only select 'D other' if your employee does not have a regular pattern of employment or the payment relates to an occupational pension or annuity.
Otherwise, you should record the hours worked as follows:
A - Up to 15.99 hours
B - 16 to 29.99 hours
C - 30 hours or more
If you have selected 'D other' in earlier submissions but should instead have selected one of the other options, you do not need to resubmit an earlier Full Payment Submission (FPS). Instead, please ensure that you report the correct hours on your next FPS.
If you would like to talk to us about your payroll, then please don’t hesitate in contacting me on 02476 518 555.