HMRC guidance states that ad hoc payments to employees do not have to be reported until the next payroll run is reported (eg late overtime claim).
However we often have clients who pay say £100 mid month to tide the employee to the end of the month when they are paid. This can be a regular occurance for some employees.
The guidance at http://www.hmrc.gov.uk/payerti/on-or-before.pdf shows
Payments on account of earnings are not considered to be ad hoc where it is established practice for some earnings to be paid outside the normal payroll cycle – e.g. where overtime is always paid more frequently |
The payments by our client are not particular earnings paid outside the normal run, just an advance. But they can be regular.
What are the thoughts on this? As these are just advances/ad hoc payments can they come under this exemption or as they are regular a FPS needs submitting each time (or within 7 days)
Thanks
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Advances
... are a payment on account of earnings and so, an FPS must be submitted on or before they are paid. The making of a loan would not require an FPS, but you would have a lot of difficulty claiming that regular advances are continually repeating pay day loans.
Newly announced 26 weeks concession
HMRC have today 19th March announced (*) that employers with less than 50 employees can make RTI reports monthly instead of weekly in certain circumstances, but only up until 5th October 2013.
(*) No doubt to be trumpeted by the Chanceller tomorrow as big help for small businesses.
Here's what HMRC have today announced:
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HM Revenue & Customs (HMRC) recognise that some small employers who pay employees weekly, or more frequently, but only process their payroll monthly may need longer to adapt to reporting PAYE information in real time. HMRC have therefore agreed a relaxation of reporting arrangements for small businesses.
Until 5 October 2013, employers with fewer than 50 employees, who find it difficult to report every payment to employees at the time of payment, may send information to HMRC by the date of their regular payroll run but no later than the end of the tax month (5th).
HMRC will continue to work with employer representatives during the summer to assess and understand the impact of RTI on the smallest businesses and consider whether they can make improvements to real time reporting which will address their concerns without compromising the benefits of RTI or the success of the Department for Work & Pension's Universal Credit.
Please see HMRC's guidance on exceptions to reporting PAYE information 'on or before' paying an employee.
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Here's a link to HMRC guidance on things like Ad Hoc payments:
http://www.hmrc.gov.uk/payerti/reporting/when-to-report.htm#3