With the implementation of RTI in 2013 HMRC want to get the message out to employers that it is now more important than ever to make sure you report employee details accurately. Please read this important Q & A from HMRC's website : Q: Why is it important to check the details I hold about my employees are accurate? A: It has always been important to make sure the information that you send HMRC about your employees is accurate to help ensure that your employees pay the correct Income Tax and NICs. Improving the accuracy of the information you hold and send to HMRC will help match the information to the correct HMRC record. This could save you money by helping to reduce the number of employee enquiries you receive. This is not just important for tax and NICs. From October 2013, RTI will support Universal Credit by providing the DWP with up to date information about claimants' employment income. Ensuring your employee information is correct will help to ensure they receive the right amount of Credit. As part of the process for an employer joining RTI, HMRC will align the records of employees held on the NPS system and the records held by employers. HMRC will publish more information about the 'employer alignment' process soon. In the meantime HMRC recommends that you start to prepare for RTI by checking the information you hold. Q: What sort of employee information should I be checking? A: Over 80 per cent of matching problems experienced by HMRC are caused by incorrect information about an individual's name, date of birth or National Insurance number. Please follow the guidance below to avoid some common errors. Name - Always provide each employee's full forenames and not just their initials. Some employers get forenames and surname in the wrong order, they don't take care to spell them correctly, or they use initials instead of the full name(s). For example, enter John Smith and not J Smith or Smith J. It's always best to verify this information from an official source, such as the individual's birth certificate or passport. Include a full middle name if the employee has one, so John Michael Smith not John M Smith. And watch out in particular for names that can be spelled in different ways such as Smith and Smyth. Date of birth - Always provide the employee's actual date of birth. Bear in mind that details taken from a P45 from a previous employer could be wrong if they didn't check it. Again, it's always best to verify this information from an official source, such as the individual's birth certificate or passport. You need to enter the day, month and full year of birth, such as 05/05/1985. National Insurance number - Always enter the employee's correct National Insurance number. Every year there are examples of employers using made up numbers, using a default number or using one belonging to someone else. It's always best to verify the National Insurance number from an official source such as the employee's National Insurance letter issued by the Department for Work & Pensions. There are numbers that are obviously wrong - the number must begin with two letters, followed by six numbers and end with letter A, B, C or D. HMRC can also help you to trace a National Insurance number for your employee - simply complete form CA6855 .
UNIVERSAL CREDIT PROGRAMME ON TRACK FOR OCTOBER 2013
2 November 2011 The Universal Credit system is the driving force behind the timeline for Real Time Information and according to the Work and Pensions Secretary the programme is on track and on time for implementing from 2013. For the Universal Credit system to work, Real Time Information
CIPP Policy News Journal
09/10/2012, Page 132 of 234
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