COMPLIANCE
In addition, we identified that a lack of two-way communication with RTI data causes errors and means resolutions are delayed. We would ideally like to see a system where employers and agents can view the data held by HMRC to identify errors more expediently. It’s our understanding that sometimes issues happen because of a payroll error. However, the case studies and research indicated that this isn’t always the case and there are potential misallocations of data occurring between the RTI system and HMRC’s backend systems which are responsible for liabilities and payments (L+P Viewer). Such occurrences should be investigated to ensure the smooth and fair operation of the tax system, as well as the system’s capabilities for expansion. As we know, the scope of RTI is further expanding all the time and we anticipate this will grow further with the introduction of extra fields for the mandatory payrolling of benefits. Report responses and backing The report was backed by other professional bodies, such as the Association of Chartered Certified Accountants, the Business Application Software Developers Association
and the Institute of Chartered Accountants in England and Wales. It was also sent to HMRC to provide comment as we wanted to ensure HMRC was aware of the situations presented and to give it an opportunity to provide context and clarity on the issues explored. “The Policy Team will absolutely continue working with HM Revenue and Customs on this matter to ensure the right thing is done for payroll professionals and taxpayers” HMRC responded, saying: “HMRC welcomes the work the CIPP and its members have done to gather insight from employers and payroll providers to produce this report regarding Real Time Information. The majority of the data processed through RTI is correctly allocated, but in the small number of cases where mismatches occur it is important HMRC and employers take action together to put things right in a timely way. We will continue
to work with the CIPP on how we can identify necessary improvements to the RTI system, further enhance employer education, guidance and systems, and how we can improve our customer service offering when problems do arise.” Future intentions The Policy Team will absolutely continue working with HMRC on this matter to ensure the right thing is done for payroll professionals and taxpayers. In fact, HMRC has shared some work it’s doing behind the scenes to improve things in this area. We can’t share the details of this just yet (at the time of writing at least), but we hope we can bring you further updates in the future on planned improvements to RTI systems and processes. While there’s still much to do, we welcome any steps which will improve how payroll professionals interact with the tax system in simple and proportionate ways. I want to thank all the individuals who took time out of their busy schedules to talk to me and help the Policy Team understand the real-world issues facing payroll professionals. The Policy Team is committed to understanding these issues and representing you where it can. n
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| Professional in Payroll, Pensions and Reward |
Issue 109 | April 2025
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