Earlier today, we published a ‘What’s New’ about Earlier Year Updates, including a helpful flowchart explaining the process. http://www.hmrc.gov.uk/news/paye-correcting.htm
We are sorry for any inconvenience this has caused.
Thank you for your patience and ongoing support.”
HMRC shares latest issues causing disputed charges
22 April 2014
HMRC’s Software Developers Support Team (SDST) has carried out a further review of causes of disputed charges.
HMRC’s Software Developers Support Team (SDST) has carried out a further review of causes of disputed charges. Whilst all concerned appreciate the issues with RTI, from the SDST’s findings, there are ways in which employers can help to minimise causes. The main causes identified in this latest review are very similar to those published last summer. There are miscellaneous different examples of confusion, which may be linked to employers getting used to RTI reporting. Some examples are listed at the end of the SDST’s update, but there are also some recurrent themes: Duplicate employments , including those caused by the reporting of leaver information continue to be a big factor. Guidance was recently published on avoiding duplicate employments . We are making good progress in recovering existing duplicate employments and are in the process of enhancing our systems to increase the number of duplicate employments corrected before the information is used to create the employer charge. EPS issues - we continue to see instances where the employer hasn’t submitted an EPS, but has made adjustments to their payment to HMRC, e.g. statutory payment compensation. We are also still seeing instances of confusion over which month the EPS credit is allocated to. Alignment of payment made with the tax period - incorrect payment made to HMRC when there are both weekly and monthly payrolls, or paying to HMRC deductions for 4 weeks when there are 5 weekly paydays in the month - both are recurrent causes of confusion. Student Loans – there are several instances of student loan deductions causing a discrepancy. A common theme seems to be that deductions are missing from the FPS submission, even though the employer has included them in their payroll. Removal of leavers – there are several instances where information continues to be reported for leavers and causes a discrepancy. In some cases the employer is unable to remove leavers from payroll and as a result the software continues to include them on FPSs even though the employee has left and is no longer being paid. Employer paying what they believe they owe, not what they have reported – there are several instances where the employer has made an adjustment for something they learnt about after the FPS return was sent. For example, they have made an adjustment to their payroll information without sending a supplementary FPS, and then paid HMRC the adjusted amount they believe they owe. However, the legislation requires employers to pay what they have reported as due by the 19th of the month after the end of the tax month. And HMRC systems can only base the employer’s charge on the information that has been reported. Inclusion of previous employment details – the year to date figures reported for an individual include pay and tax information from the previous employment.
CIPP Policy News Journal
08/04/2015, Page 308 of 521
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