Policy News Journal - 2013-14

PAYE Real Time Information (RTI) pilot employer research

Real time information - movement of pensioners to new PAYE schemes

14 November 2013

HMRC has come across errors when a pensioner is moved from one PAYE reference to another that have led to the issue of incorrect codes and forms.

HMRC has published a reminder of the correct procedures to follow and some hints to help get it right.

Timing of the first Full Payment Submission (FPS) from the new scheme reference

You must ensure that the first FPS from the new PAYE scheme reference is submitted after the last FPS from the old reference has been sent. If you don't do this, HMRC will set up the new pension source as a secondary employment and may issue incorrect codes.

Start date

Make sure that the start date of the first FPS relates to the date that the pensioner joined the new scheme reference. If the start date used is the date that the pensioner started at the old scheme reference, this will wrongly create employments for earlier years at the new scheme reference.

Completing the 'Occupational Pension Bereavement' field

Only complete the 'Occupational Pension Bereavement' field on the first FPS from the new PAYE reference where the pensioner is a recently bereaved spouse or civil partner. If you complete this field when the pensioner was bereaved some time ago it will prompt HMRC to wrongly issue forms P161W to widows/widowers - these forms refer to a recent bereavement and may cause upset. Unless the pension at the new scheme reference is being paid as a result of a recent bereavement at the time the pensioner joined the new scheme, the 'Occupational Pension Bereavement' field should not be completed.

There are more details about what you must put in the fields on an FPS in the guide ' What to report ’.

Real time information secondary legislation consultation

2 December 2013

HMRC has published a consultation document asking for comments on the secondary legislation needed to make changes to the rules on Pay As You Earn, National Insurance contributions and the Construction Industry Scheme as they relate to Real Time Information.

The Policy team will be issuing a survey shortly to gather member comments.

Legislative changes relating to Real Time Information – draft secondary legislation

The consultation will run until 24 January 2014.

CIPP Policy News Journal

16/04/2014, Page 346 of 519

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