PAYE Online upgrade adds new facilities
HMRC celebrated the start of its new tax year by rolling out the final stage of its upgrade to the National Insurance and PAYE Service (NPS) on 6 April 2010. The main component of the overhaul is an automated End of Year (EOY) Reconciliation routine which should help HMRC identify data mismatches.
“For most customers, NPS will automatically check the amount of tax paid on the individual’s total income for the year against the allowances and deductions on their record,” the department advised. “Where either too much or too little tax has been paid, a calculation will be issued automatically. This will speed up the process of reconciling records at the end of each tax year and reduce clerical involvement.”
HMRC added that it was taking steps to ensure the year end reconciliations would not include erroneous data included in PAYE Coding Notices earlier in the year so that calculations issued to customers and their tax agents would not be affected.
While this new process is implemented, the CIOT warned, “It may take HMRC a little longer to process repayment requests (although HMRC assure us that they will still be able to deal with requests for repayments while the data reviews are ongoing).”
In another welcome development, the upgraded PAYE Online portal now includes a facility for employers and agents to inform HMRC that they have no Employer Annual Return (P35 and P14s) due for 2009-10. As well as speeding up the process, the notification mechanism will send you an instant email acknowledgement that the declaration has been received.You can still contact HMRC in writing or by telephone.