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Avoid fines and non-filing generic notification service messages by making a correct final payment submission (FPS), HMRC has advised employers that no longer need their PAYE schemes.
Firms looking to 2014/15 have been told by the Revenue to:
A company director takes no salary and the PAYE scheme exists only for the reporting of benefits in kind and expenses. Advice is required on the most administratively easy way of dealing with the requirements of the real time information system. Should a nil in-year submission be made for the whole year and, if so, when?
Late PAYE payments will incur in-year interest charges for the first time, HMRC have warned following last month’s introduction of a regime that replaces annual levies.
Firms that want to avoid the new-style charges, which also apply to the construction industry scheme, should settle with the Revenue by the due date – 19th or 22nd of the month – the difference between what they report on their full payment submission (FPS) together with CIS charges for the tax month, and the deductions reported on an employer payment submission (EPS).
The first complete tax year under real-time information (RTI) for the majority of employers worked well, with only one major problem, according to the taxman.
HMRC have been conducting weekly end-of-year teleconferences with employer representatives since 31 March, at the request of Payroll Alliance, the LexisNexis service.
The department says information for 2014/2014 flowed through to its systems as expected, with the only significant obstacle being the Government Gateway server crash on 11 April.
HMRC now calculate tax credits awards through the real-time information (RTI) system.
The new set-up – effective from 6 April 2014 – means renewals notices will show the total gross pay for the year, which may be from more than one source.
Claimants should check that income details shown are correct and contact the Revenue as soon as possible if they think the information is wrong, the tax department said.
Some claimants may contact their employer or pension provider if they think the income is wrong. In which event, the employer or pension provider should:
Earlier year updates must reach taxman by 19 May
ATT wants 19 May cut-off for payroll submissions
HMRC are in the process of updating their generic notification service (GNS), with the aim of keep employers up to date with real-time information (RTI) requirements.
The first of the retooled messages for 2014/15 concerns late filing: employers will not necessarily receive a notification in every instance in which it occurs, and there is no need to contact the Revenue if an anticipated GNS message has not been received.
RTI guidance updated
Employers face penalties at the end of the 2013/14 if they should have started using the real-time information (RTI) system but have not yet done so, HMRC have warned.
The department urged firms to act immediately, having already issued letters in June and September 2013 to urge employers to start reporting PAYE in real time as soon as possible.
LexisNexis’s Payroll Alliance has launched an online survey on real-time information, after the payroll management information service’s members expressed concerns about adjustments they have had to make.
Incorrect real-time information tax codes are being issued for businesses that have submitted employer alignment submissions (EAS) or full payment submissions (FPS) that are incomplete or partial.
Examples include where an employer:
