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The real-time information system that has been introduced to make operation of the PAYE system more straightforward seems to be causing many headaches for employers and their advisers

HMRC have set up a dedicated team to identify the cause of difficulties for PAYE schemes in reconciling the difference between the tax the department says is due and that which the employer believes is due.

The team is working with schemes through their examples to examine what is causing the discrepancies, with the aim of finding resolutions.

The Revenue hopes the new set-up will form understanding of the issue in greater depth, and lead to steps necessary to prevent the problems arising in future.

Employers are risking problems for their workers by entering 0.00 in the field for annual amount of occupation on the full payment submission (FPS) in cases where no occupational pension is paid, the Revenue has warned.

The trouble with registering a company as an annual PAYE scheme

HMRC move to tackle employers’ real-time difficulties

Taxman may cancel payer status

HMRC are set to issue penalty letters to employers who took part in the real-time information (RTI) pilot and have not submitted a final full payment submission (FPS) or employer payment summary (EPS) for 2012/13.

The correspondences – set to be sent out from tomorrow (25 June) – are the equivalent of 2012/13 end-of-year penalty notifications.

Fines have been applied from 19 May 2013 to ensure RTI trialists are treated in the same way as non-pilot employers, according to the Revenue.

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