RTI PAYE

RTI PAYE

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Hi

A client has a payroll where the staff are paid based on hours worked up to the final day of the month but the payment is only made on the 9th of the following month.  The Revenue have highlighted this as unacceptable as it does does "fit in" with RTI.

Are they correct and any suggestions on how to correct it?

Ta

Nathan

Replies (4)

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JCACE
By jcace
13th Mar 2013 16:24

Problem?

Hi Nathan. Your post doesn't explain what the problem is. You will need to enter the payment date as the processing date, rather than the end of the month as I understand things, and perhaps that is your problem. Your RTI submission will then need to be made on or before the payment date.

Are you instead wanting to treat as being paid on the last day of the month?

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By neiltonks
13th Mar 2013 17:14

Tax month

Payrolls which are in arrears like this one are normal and not a problem for RTI. The usual rules apply, i.e. the RTI submission must be made on or before the payment date, and the payment date shown in the submission must be the normal pay date (the 9th in this case).

Like the previous poster, I wonder if maybe the practice has been to tax the payment as if it were made at the end of the previous month, whereas the tax period in which the payment date (the 9th) falls should be used. If this is what's happening, tax has always been calculated wrongly and RTI has simply highlighted an existing problem.

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Euan's picture
By Euan MacLennan
13th Mar 2013 18:08

Payment date is the 9th

I agree.

The payment on 9th April for work done in March should always have been processed for PAYE as Month 1 of the new tax year.  RTI has changed nothing in this respect.

If you have processed the pay on 9th March for work done in February as Month 11, you have two options:

process no pay in Month 12, with all the consequences of a month's extra tax-free allowances, and continue with your next payment on 9th April as Month 1, orcontinue to fudge it by processing the payment on 9th April as Month 12 (or get it right by bringing forward the payment to 5th April or earlier) and then bringing forward the next payment date to no later than 5th May to get it into Month 1 and so on in future.

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By Kazmc
13th Mar 2013 19:20

Same problem
We have a client payroll who historically has payments made on the 15th of the month whilst running the actual payroll using the previous tax months tax period, and yes we are having to move the payday to the 5th or before. We also have the same problem with some "in arrears" weekly payrolls.
Sorry and good luck

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