HMRC getting tough with those delaying reporting PAYE Information


HMRC have issued a further warning shot to employers who have failed to follow the new real time information (RTI) process by sending around 167,000 letters to employers who have missed one or more reporting deadlines. 

This comes on the back of the first raft of letters issued to employers who had already missed a deadline in June of this year.  HMRC are encouraging employers to “act now” and start reporting in real time.
 
Earlier this summer, HMRC reported that 300,000 schemes that should be on the RTI scheme had yet to come out of the woodwork.
 
If employers have not reported because they don’t pay anyone, the PAYE scheme has closed or it is no longer operating, they still need to let HMRC know by calling their Employer Helpline.  Furthermore, it adds that employers or agents, acting on behalf of their clients, who have set up unused PAYE schemes, should also contact HMRC to close them.
 
HMRC’s director general for personal tax, Ruth Owen, said: “Over 85 per cent of employers are now reporting PAYE in real time but our records show that 167,000 employers have yet to send us a PAYE submission. Reporting PAYE in real time makes it easier for employers to pay HMRC the right amount and avoid late payments and penalties.
 
“If agents have set up, on behalf of their clients, PAYE schemes that have never been used - or their clients’ PAYE schemes have now ceased - they should call HMRC to close the scheme.”
 
HMRC said employers should either submit a nil Employer Payment Summary (EPS) each month or contact them to change the scheme to annual and then submit a nil EPS once a year.
 
HMRC is not writing to employers who have registered their PAYE scheme as an annual scheme.
 
So far 1.6 million employer PAYE schemes, covering more than 40 million individual records, are now reporting under RTI since the launch in April.
 
Department for Work and Pensions (DWP) are also utilising collected PAYE information reported in real time to calculate Universal Credit amounts paid to people in its pathfinder pilot in the north west of England, ensuring the amount of benefit accurately reflects their level of income.
 
If you are struggling to keep up with the reporting deadlines or require payroll advice you can contact our Director of Payroll Services, Ken Davies by email or calling 0151 423 7500 who would be happy to assist.
 
Mitchell Charlesworth also offer a fully outsourced payroll service.  More information can be found here.

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