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Latest RTI news from HMRC

28th Jun 2013
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A reminder from bestonlineaccounting of the PAYE payment position for employers reporting PAYE in real time, as we appreciate that many employers are still getting used to this new way of reporting. However the system is here to stay so hopefully the information set out below will be of use to you all.

            
Payment dates and paying in full
Due dates for payment remain unchanged.

Cheque payments need to be received by the 19th of the month following the end of the tax month of deduction, and cleared electronic payments by the 22nd. This means if you pay monthly, HMRC should receive the PAYE you deducted between 6 May and 5 June 2013 by 19 or 22 June 2013 depending on your method of payment.
As always, HMRC expect employers to pay in full by the due date.
Payment in full is the:

  • total amount shown on your Full Payment Submission(s) (FPS) for a tax month, including any corrections or adjustments submitted on or before the 19th of the following month
  • less the amount shown on any Employer Payment Summary (EPS), also submitted on or before the 19th of the following month

So, for example, the payment due from you for the month of May (the period between 6 May and 5 June 2013) will consist of your FPS, any amendments to those, plus any EPS, received by 19 June 2013. Amended FPS and EPS received after this date will be taken into account in your charge for the following month.
You should also use an EPS to tell HMRC that you have no FPS to send as, without it, HMRC will instead calculate what they believe is due - and expect you to pay it in full. See 'What if I don’t send any PAYE report in real time?' below.
It is important you pay using the right payslip or, if paying electronically, you use the right reference number.
You need to pay using your 13 character Accounts Office reference - for example 123PA00012345 - and adding to the end the tax year ending and month number your payment relates to. So, to pay 2013-14 month 02 you would add 1402 making your reference 123PA000123451402.
If you don’t give the right reference number you could be contacted unnecessarily about an apparent debt because your payment has been delayed.

Checking your 2013-14 PAYE position
You can use HMRC's online PAYE Liabilities & Payments Viewer to confirm the real time submissions that they have received, and to see both what you owe and what you have paid.

But be aware that the Viewer might not show the most up-to-date position for:

  • What you owe to HMRC: please note that the Viewer's 'Amount due in period' figure is updated on the 6th and 20th of each month, based on all submissions received to those dates. So any submissions made between these dates will not be reflected until the next update.
  • What you have paid to HMRC: please note that there is a slight delay in the payment information reaching the Viewer. So any very recent payments you have made may not be shown.

Please note that any FPS or EPS amendments for the April tax month sent after 19 May will be taken into account in their May calculations.

What if I don’t send any PAYE report in real time?
If you were due to start reporting PAYE in real time from 6 April 2013 and you don’t make any PAYE real time submission to HMRC (on an FPS or EPS) before 19 June, they will send you an estimated charge for you to pay in full, which they refer to as the 'specified charge'.
You will receive a specified charge for each month that you fail to report. So if you don’t make any PAYE real time submission for April and May 2013, you will receive a second specified charge in June.
Specified charges are based on your previous PAYE payment and filing history, and represent what HMRC think you owe. You will be able to see any specified charges on the PAYE Liabilities & Payments Viewer. A specified charge does not replace the need for you to send an FPS - you still need to submit this to report the actual deductions you have made. Also if the actual deductions you've made are more than the specified charge, you should pay the additional amount too.
If you submit an FPS or EPS within seven days of the specified charge, your submission will overwrite the specified charge. This means that you can pay your reported, rather than the specified, amount.
Employers who pay HMRC quarterly should still send a monthly FPS and/or EPS to HMRC, otherwise they too will incur a monthly specified charge. However, quarterly payers will still only be expected to pay in full on a quarterly basis rather than monthly. The first such payment date will therefore be 19 or 22 July, depending on the method of payment.

THE IMPORTANCE OF THE 19 JUNE 2013 TO HMRC

Three months in to real time and as you would expect it is time for some letters from HMRC for PAYE schemes that have not yet made a submission in real time
http://www.hmrc-corporatecommunications.co.uk/assets/1/3/6/3/0b6b337de7f7ba82a9161452f74151bf4ab1ecc4e642269022/RTI400A%20version3.pdf

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