How to amend RTIs if the wrong tax code used?

Wrong RTIs filed with incorrect tax code and salary figures

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Hi,

How can you correct last 7 months payslips if the employer has used the wrong tax code in last 7 months and has filed the wrong salary figures to HMRC?

The tax code was supposed to be BR and they used 1100L and the total salary figures were 3100 on payslips and they filed 4100.

Client need new payslips as the client is going for visa. 

Can we go back each month and used BR code and correct the salary figures and file the RTIs again and generate new payslips for each month?

Bear in mind that the company client works for is very big with ample number of employees.

Any help will be much appreciated.

 

Replies (10)

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RLI
By lionofludesch
11th Dec 2016 09:43

Unlikely that you'll persuade a massive company to change all its RTIs. Even if they were at fault.

Best you can hope for is an apologetic letter of explanation from the employer.

Why has it taken seven months for your client to notice this bizarre error ?

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Replying to lionofludesch:
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By Smad890
11th Dec 2016 12:12

Yes the company is not willing to file it again.
The client was recently told by solicitor that the tax code is wrong and when they check with hmrc they were told that salaries were declared more than what she was paid.

Even if they write a letter, its still a mistake so how can it be corrected?

Whats the best solution?

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Replying to Smad890:
RLI
By lionofludesch
11th Dec 2016 12:50

Well, suddenly that sounds like a modest fraud.

Company pays £3100 and wants a tax deduction of £4100?

Whose solicitor was advising the client? The client's or the company's?

If you get no satisfaction, just report it to HMRC as a fraud. That should get the company's attention focused.

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Tom McClelland
By TomMcClelland
11th Dec 2016 12:52

The solution is to redo payslips and refile the incorrect months of RTI for just that employee (obviously also making sure that they have now received the correct net pay too). Decent payroll software should allow you a fairly easy mechanism to do this, but exactly how to do that depends on how your payroll software works.

If what was filed was wrong then "not being prepared to file it again" is not an option!

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Replying to TomMcClelland:
RLI
By lionofludesch
11th Dec 2016 12:54

The OP appears to be acting for the employee, Tom, not the employer.

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Replying to lionofludesch:
Tom McClelland
By TomMcClelland
11th Dec 2016 13:15

Quote:

The OP appears to be acting for the employee, Tom, not the employer.

Ah, possibly so. In which case the OP or employee needs to tell the company that issuing incorrect payslips and reporting incorrect RTI to HMRC is not an option, but a series of offences.

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Replying to TomMcClelland:
RLI
By lionofludesch
11th Dec 2016 20:18

Or the employee could ask for the extra £1000 on his payslips.

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Replying to lionofludesch:
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By Smad890
11th Dec 2016 23:39

Thanks for replying back but how can they pay extra? You mean just paying 1000 extra next month in dec & generating payslip and not declaring it in rti? It will be matched with year to date figures hmrc holds right now.
What about the tax code? How can we correct that in previous payslips?

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Replying to Smad890:
RLI
By lionofludesch
12th Dec 2016 10:04

Quote:

Thanks for replying back but how can they pay extra?

The company declared £4100 as being paid, they only paid £3100. They owe the employee £1000 if they refuse to change the RTI. Fine by the employee, I would imagine.

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Replying to lionofludesch:
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By Smad890
12th Dec 2016 15:35

Yes thats right but what about the tax code?

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