Sorry if this has been asked and answered repeatedly, but do the peanut gallery anticipate any RTI administration problems associated with salaries that have an annual payment interval?
With kind regards
Clint Westwood
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Replies (3)
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Monthly filing
You will have to file a nil EPS return monthly.
I've seen it argued that this is little more arduous than the current requirement to notify the payment office of the nil return monthly or quarterly.
It depends...
If the annually paid employee is the only one in the PAYE scheme then the nil EPS should suffice.
However, if there are other employees who are being paid more regularly, so a nil EPS is not possible, then you'll need to include the annual employee in the regular FPS, even for periods where they are not being paid, with the 'irregular payment' flag set.
If they aren't included then HMRC will close the employment record after a period of time (96 days, I think) since the last time you included them.
Irregular
You don't need to include annual employees on every FPS when there are other employees to report. You only send them on the initial alignment submission and in the periods in which they're paid, setting the irregular payment indicator each time. There's no need to include them in the FPS for periods when they haven't been paid.