COMPLIANCE
number. It’s also possible that the new employee may just not remember it. While using a NINO for a new employee isn’t mandatory, Ben shared this key warning, “Don’t submit a default or incorrect number as it will delay the right pay.” Most software has just one NINO field, and this is the field the software will take for data line five on your RTI submission. You may also wish to consider your process for recording a temporary NINO from the pension provider (as many will generate a temporary number so you can successfully upload their reports into their system), as some employers may use the software and record this in the NINO field, not realising it will be fed through to HMRC on the RTI submission. There’s also no way for HMRC’s side to check and reject the RTI submission if you have used an unknown combination such as AB123456C or AA010180F. However, temporary NINOs will automatically fail the RTI submission. Ben highlighted the scale of this issue, by confirming, “Last year, HMRC received over 2,000 returns with the NINO AB123456 and over 1,000 returns with the NINO AA111111.” It’s safe to say that this is due to payroll errors rather than a single employee with over a thousand jobs. How can we get this right? The most important thing to remember is that either the correct NINO is entered in the correct format, or that it’s left blank (for the shortest time possible while you find the individual’s actual number). Ben shared some tips on how to make sure you have the correct NINO, stating, “If an employee doesn’t know their NINO, ask them to use the HMRC app to find it. They can log in for the first time by using photo identification or answering some questions. Once they have the app, they can view, print and even save their NINO in their phone’s wallet.” The number can also be found on the employee’s: l paper NINO notification letter (usually received before they turn 16) l NINO card (issued between 1975 and 2011) l documents from HMRC or DWP that include a NINO. If you make a submission with a blank NINO, HMRC will generate a temporary
“If you’re setting up a test record, ensure you don’t do this in a live environment. And if sending a test real time information file, ensure you have the test indicator ticked”
reference number. Or it will create one when unable to match an individual submission to a NINO.
https://ow.ly/JFQN50Rr0o1. In addition to providing the correct date of birth for your employee, Ben stressed, “It’s important to check the date is in the correct format – day, month and full year of birth. If you enter a default or incorrect date, it can mean your employee doesn’t get the right pay.” It’s also important to check your software isn’t set up with a default date of birth. Name Like date of birth, we take it for granted that name data will be correct. Ben shared some of the more surprising entries HMRC has received: l 507 returns had A N Other l 128 as either Mr, Mrs or Ms Dummy l 572 whose surname ranged from X to XXXXXX l 824 with surnames of either ‘unknown’, ‘not known’ or ‘known’. The obvious reason for this could be that these were test records set up in a live environment, or that the whole payroll was a test, but the RTI was submitted as live. How can we get this right? To avoid errors when recording names, enter the forename(s) and surname(s) in separate fields, enter double-barrelled names into one field and always validate spelling with official documents, while never using initials. If you’re setting up a test record, ensure you don’t do this in a live environment. And if sending a test RTI file, ensure you have the test indicator ticked.
Date of birth It may seem surprising that we’re
discussing date of birth as a data field which causes errors, but HMRC statistics showed that last year, nearly 7,000 individuals aged under one-year-old were reported via RTI, either in employment or with a pension. There’s a very slim chance a one-year-old may inherit a pension, but this is an extreme rather than expected. Explaining this anomaly, Ben said, “We think this issue occurs when payroll professionals use the employment start date instead of the date of birth. It really shows the importance of checking the data is correct, and in the correct data line.” At the other end of the scale, 28,200 individuals aged over 100 and in employment or with a pension were reported. And while there’s a slightly greater chance of this being true than for a one-year-old, it would still be rare. The most common date of birth used was 01/01/1980. This field is compulsory and sits on data line ten. It must also be reported on each RTI submission, or it will fail validation. What the validation cannot check is that you have entered the correct date. (Please note, the only time it will go through is if data line 147 has a Y in it, to signify payment to a non-individual where payments are made to a body, such as a personal representative, trustee or corporate organisation.) How can we get this right? The best way to avoid date of birth errors is to cross reference the information with the documents used for right to work checks, such as a passport. You won’t necessarily know if it’s correct, but you can check any starter documents you have sight of and also ask them to complete and send you the new digital Starter Checklist before they start. You can access this here:
Take the time now to avoid ongoing issues in future
For payroll professionals, getting these three things right will avoid errors which can all too easily become time-consuming problems to resolve. This will help our employees too, getting them on the right pay sooner, preventing short-term financial hardship and removing the need for them to contact HMRC. n
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| Professional in Payroll, Pensions and Reward |
Issue 101 | June 2024
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