RTI process reminders

14 October 2014

A number of members have reported issues surrounding reconciliation processes. The CIPP continues to work with HMRC to understand better how we can work together to identify and eliminate the causes of the issues.

It is crucial payroll professionals know what to report when:

· making payments after leaving but an FPS has already been submitted

· errors and or adjustments,

· nil returns etc.

What to report can be found here https://www.gov.uk/running-payroll/reporting-to-hmrc.

It is also important to work with your payroll software provider. Some of the processes might be automated, others might not and require some manual intervention from you. Recently the Telegraph published a story in respect of individual tax payers and, as Phil Nilson stressed at the CIPP’s annual payroll and pensions conference, the numbers were massively exaggerated. The normal reconciliation processes are taking place at HMRC and there are many reasons why someone receives a P800 due to their personal tax affairs. Unfortunately some cases were processed by HMRC before all the relevant information was available (such as Earlier Year Updates), an unfortunate outcome and an indication of the extent to which HMRC and employers are still adapting to RTI. The ATT has, on 14 October 2014 called for a review of RTI, but the CIPP believes HMRC and external stakeholders are constantly reviewing RTI and, just like we experienced with the introduction of online filing, in the not too distant future all the issues will become a thing of the past and RTI will become business as usual.

The CIPP and others have urged HMRC over the years to share with their trusted stakeholders any problems so that we can help employers understand why they might receive queries. Disappointingly one or more of these trusted stakeholders decided to “leak” an email to the press. The CIPP’s policy team hopes the actions of one or two does not jeopardise the working partnerships to help the profession transition with any legislation changes. If you have queries or need help please do email the policy team at policy@cipp.org.uk