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RTI pain points

Jul 7, 2014, 07:53 AM
Authors : Linda Pullan
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Post date : Jul 7, 2014, 07:53 AM

HMRC report 2013/14 end-of-year activity went well for real-time information (RTI). Some employers missed the deadline for the submission of their final full payment submission (FPS) for the tax year, but the taxman believes this may be due to confusion over the cut-off dates.

With plans for the Employer Bulletin to be published six times a year instead of quarterly, there will be further opportunities for the Revenue to offer stronger guidance close to the cut-off dates for next year.

HMRC reported that 86% of those expected to submit during April filed their final FPS and indicated it via payroll software. However, there were a further 10% of employers who, although they filed in April, failed to indicate it was their final submission for 2013/14.

Depending on the software used, the final submission indicator could be selected on the FPS up to 19 April, if the 5 April cut-off was missed, or on the employer payment summary (EPS), which was due by 19 April.

The action of selecting the final indicator and answering the accompanying questions previously stated on the P35 completes the tax year. HMRC have not commented on whether these employers will be penalised for failing to do so.

One question that often arises from employers is: “What is the earlier year update used for?” Although not automatically available through an employer’s payroll software, it can be accessed through HMRC’s basic PAYE tools.

The facility, which is available from 20 April after the end of the tax year for up to six years following the end of that tax year, provides employers with the means to make adjustments to the previous tax year under RTI. Adjustments should have been made by 19 May to avoid penalties.

As an indication of the pain points that employers are struggling with, here are the top ten questions received by the employer’s helpline:

  • Can you help me amend a submission?
  • Can you help me complete the RTI final submission for year end?
  • I do not understand an underpayment letter I have received
  • What is happening with my PAYE refund?
  • I want to close a PAYE scheme
  • I want to register for PAYE/as a contractor
  • What is happening with my CIS refund?
  • How do I use the basic PAYE employer’s toolkit?
  • I want to reopen my PAYE scheme
  • Can you tell me how much I have paid?

Linda Pullan is head of Payroll Alliance. She can be contacted on 020 8662 2050 and by email

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