Payroll insight
I C S
notice a variance between ‘amount paid in period’ and ‘amount due in period’ within the first period that you switched providers. Once you have established this, you must reconcile your payroll (i.e. the figures from your previous provider plus the first run) with the amount due in period. If you can do this, contact HMRC. You will need to provide your reconciliation information over the phone. Request HMRC put this account ‘into dispute’ which essentially will stop them chasing you for the disputed amount until the matter is either resolved or begins to slide. ...put this account ‘into dispute’ which essentially Unfortunately, once in dispute, it can take up to twelve months for HMRC to fix the issue. There is no fast-track, even if you are fortunate enough to have a dedicated account manager at HMRC. Once the case has been sent to HMRC’s issue resolution team, they will initially check to see if there are any duplicated records. They may then send you a list of the account, employee by employee, for you to check. Employees who have tax code changes in the interim would need to contact HMRC’s Employee Helpline stating they do not have a second employment, and that this is a duplicate record. Unfortunately, HMRC may well respond by saying that the employer must fix this themselves, either by applying an adjustment to the FPS or by processing an will stop them chasing you...
earlier year update – neither of which will actually fix the problem. Q
As the results of this poll demonstrate, there are clearly flaws at the heart of the RTI process that HMRC must address in the longer term. We can hope that HMRC responds in due course. Minutes of BCS Payroll Specialist Group meeting held on 26 July 2017 Change of payroll software supplier – Members initiated a discussion on change of payroll software supplier and the issues that commonly arise following the first FPS submission. Duplicate employments, perceived underpayments and erroneous tax coding notices are commonplace. HMRC will take the discussion back to Shipley to get an update on status, and members offered to assist HMRC in taking steps to identify and address the issues. Example Employee (Payroll ID ‘ABCD’) pays tax of £1,000 per month up until December. If you change software in January and use Payroll ID ‘1234’ without using the Payroll ID changed indicator and en- tering the ‘old’ and ‘new’ numbers, HMRC will calculate the tax and NICs based on the YTD values.
Payroll ID
Tax YTD
ABCD
£9,000
234
£10,000
Total
£19,000
The employer correctly pays £10,000, but HMRC calculates £19,000 as due and will expect payment of the £9,000 balance.
04.10.17
What payroll information to report to HMRC
You can assign payroll IDs to your employees. The ID must be unique. Use a different one if you re-employ someone (if you do this within the same tax year restart their year-to-date information from ‘£0.00’) or have an employee who has more than one job in the same PAYE scheme. If you reuse a previous payroll ID you’ll create a duplicate record and report payroll incorrectly Only set the payroll ID changed indicator when reporting payroll ID changes and ensure both the ‘OLD’ and ‘NEW’ payroll ID is entered. You should not include the original start date. Don’t put ‘Yes’ if you used a different payroll ID when you re-employed someone who left in the same tax year. You should ensure that the year to date financial data cumulates from that on the previous submission. Only enter their old ID if it’s changed since your last FPS. You mustn’t complete this if you are re-employing someone. If you don’t supply it, and they have more than one job in your PAYE scheme, your PAYE bill may be calculated incorrectly
Payroll ID
Payroll ID changed indicator
Email membership@cipp.org.uk for more information.
Old payroll ID for this employment
cipp.org.uk @CIPP_UK
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Issue 34 | October 2017
| Professional in Payroll, Pensions and Reward |
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