penalty regime should be delayed by 12 months. Nearly 19% felt it should be delayed for 24 months and 10% stating it should be delayed by 6 months. Just 4 people said it shouldn’t be delayed, 3 of whom were employers and one payroll service/software provider.
One comment received as to why they didn’t think the penalty regime should be delayed was “Many companies are still not complying; carrot has not worked, so time to switch to stick".
Those who believe the penalty regime should be delayed offered a variety of reasons. Below is a summary of the key reasons given to delay the penalty regime. A lack of confidence in HMRC systems; not robust enough or accurate Delaying will provide HMRC more time to sort out the reconciliation issues Will provide payroll software providers more time to iron out any issues with RTI Will allow employers more time to understand the payroll process changes without fear of financial penalties. Recommendations made: HMRC should delay the RTI penalty regime for at least 12 months to allow RTI reporting to settle down and HMRC systems to be enhanced to meet employer needs. Delaying will also, the CIPP believes help to restore confidence in HMRC’s reconciliation routines Improve the Dashboard updating; real time would be preferred Allow employers to quote the tax month on any Employment Payment Summary to try and minimise incorrect postings by HMRC’s Debt Management and Banking department.
The full response including all the survey responses is available on the CIPP website .
PAYE details for 2013-14 - tax month 8
28 January 2014
Further to the news item on 20 January regarding HMRC’s Business Tax Dashboard showing incorrect payment positions for tax month 8 for some PAYE schemes, we have an update. Customers who are affected will see that payments they believe they have made to HMRC from any point from 21 November 2013 to 16 January 2014 have not been posted correctly to the Dashboard.
Unfortunately, around 100,000 schemes appear to be affected by this error, which arose because of an IT change made to HMRC's systems on 21 November 2013.
Customers affected may see:
that the amounts shown do not reconcile with the amounts actually paid a duplicated payment an incorrect method of payment, for example an electronic payment being shown as a cheque payment The error was corrected on 16 January 2014 to stop any re-occurrence and HMRC's systems have processed all FPS submitted on or after that date correctly. HMRC would reassure employers that HMRC’s internal records of payment are not affected. HMRC is therefore not pursuing any debts incorrectly as a result of this problem.
HMRC will be correcting the data for schemes affected over the next few weeks, so if you believe that you are affected by this issue you do not need to contact them.
CIPP Policy News Journal
16/04/2014, Page 355 of 519
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