HMRC finally tackles RTI annual scheme backlog

Limited company contractors who want to pay themselves annually instead of monthly under the Real Time Information (RTI) regime can now proceed with HMRC.

Up until now the Revenue has been unable to deal with requests it received from employers wanting to change the status of their PAYE schemes to annual.

At the end of April, when RTI went live, HMRC stopped employers and their payroll agents from switching their pay cycles to “lessen the administrative burden” of RTI. By May HMRC revealed that the delay had been caused by a software glitch.

However it announced last Thursday that a “fix” was...

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Comments
Euan MacLennan's picture

Yesterday?

Euan MacLennan | | Permalink

"However it announced yesterday that a “fix” was now in place..."

You are behind the times - it was last Thursday, 25th July, as I mentioned on Saturday.

robertlovell's picture

Re. Euan    2 thanks

robertlovell | | Permalink

Thanks for pointing that out Euan - I'll amend the article to say "last Thursday"

jon_griffey's picture

Not far enough..    1 thanks

jon_griffey | | Permalink

 "It will not, however, notify them that the change to annual has been made."

So - we have no way of knowing if the employer has been properly logged as an annual scheme until the client receives a threatening letter from HMRC.  Surely it is not beyond the wit of HMRC to allow us as agents to log in and flag clients as annual schemes, or at least view their status? 

I would suggest that with the vast number of one-man service companies around that probably half of all payrolls fall into this category.

And why exactly must an employer file in the same month each year?

Basic Tools and separate registration for annual scheme?

awdeek123 | | Permalink

This question has been discussed before on AW and elsewhere but never resolved as far as I know:  I set up and processed an annual payment using HMRC Basic Tools but don't know if I should also 'register' as well or is registration deemed to be part of the Basic Tools process?

Please excuse my dumbness

davidross | | Permalink

I have been holding back applying for Annual Payment for a number of schemes. Something tells me there was an application form but I cannot find reference to this - should I just send letters (or a letter and a list)? and should I send it to Newcastle upon Tyne?

Bit Late!

Briar | | Permalink

So having changed what were previously annual schemes to monthly ones (to comply with RTI threats, etc), and made the filings, I assume that we cannot change them until next year! Is there a way of cancelling the previous RTIs for this year and changing them to Annual ones? Why didn't HMRC think of this before the RTI scheme went live in April? Just incompetence as usual , I suppose.

Another fine mess...

Ian McTernan CTA | | Permalink

Gee thanks HMRC- so we have all now filed three months of the current year, paying all those directors on a monthly basis, and now you tell us we can finally switch them to what we wanted in the first place- but only if we haven't made payments!

Total rubbish from HMRC, whatever happened to the precious RTI liaison committee which was supposed to be acting in our interests and helping HMRC not make such idiotic decisions.

No notification that the employer is now on the annual scheme- that's just lazy and pathetic, roll on a couple months from now when the threatening letters go out to clients as we don't know whether the registration worked or not...

Oh and Briar, they were well aware of the potential problem but were too busy with the RTI liason committee patting themselves on the back for being bale to deal directly with large companies on issues from the pilot (yep, surely having a direct phone line to resolve issues with your very own support techs is representative of the real world for most of us....) to consider the few hundred thousand one man companies that wanted to register as annual schemes, then the flood came, so they stopped you from being able to do it, and now they won';t tell you when you do do it.

Who exactly do I charge for all this additional work?  As usual, the little guys got ignored and are left to clean up the mess.  Maybe one day one man practices, etc will get some representation on these committees so they don't consist entirely of each other's mates and some real world can be injected into proceedings.

jon_griffey's picture

Annual schemes

jon_griffey | | Permalink

 

In the pre-RTI days you could phone HMRC at any point in the year and ask to be put on an annual scheme and that would stop monthly reminder from being issued.

I presume that this is the case with RTI.

We have just sent a long list of clients to HMRC to be made annual schemes.  However we won't know if this has been actioned etc.  I suppose the first we will hear of it will be when clients start ringing up about getting threatening letters.

We really need to be able to 'self-serve' this.  Most payrolls these days are OMB threshold payrolls and of no interest to HMRC.

 

 

Good response from HMRC

davidross | | Permalink

Despite saying they would acknowledge applications, I got a nice letter listing the schemes for which Annual Accounting has been approved - thankyou to "D Ford Administrative Officer" in Newcastle