Share this content

changing from monthly to quarterly PAYE payments

how to inform HMRC

Didn't find your answer?

Ltd client, 8 staff, monthly PAYE liability is c£500, wants to change to quarterly HMRC payments.

I think I've identified how to change the settings on Moneysoft to the PAYE liability is reported for payment quarterly. Gov.uk says I need to ring the PAYE helpline to discuss whether we can change .. does anyone know whether I actually need to ring them?

What happens if payments just stop monthly and start being paid quarterly?

Thanks

Replies (12)

Please login or register to join the discussion.

RLI
By lionofludesch
03rd Aug 2021 10:21

No need to tell HMRC. Just do it.

As far as Moneysoft goes, there's a box ticking exercise on the PAYE payment page as I recall.

Thanks (0)
avatar
By Leywood
03rd Aug 2021 11:58

From my experience it just happens in the background at HMRC, Ive had one client move from one to t'other on a semi-regular basis over the last few years as they are borderline on the limit.

Thanks (0)
Replying to Leywood:
RLI
By lionofludesch
03rd Aug 2021 12:11

I think they just know not to chase the debt if it's below the threshold. They know how much is owed through RTI, obviously.

Thanks (0)
Replying to lionofludesch:
avatar
By Leywood
03rd Aug 2021 13:46

It shows on clients online tax account when it changes, they have shown me in the past. (No I didnt log in, they do, on a fairly regular basis after having problems with allocations in the past)

Thanks (1)
ALISK
By atleastisoundknowledgable...
03rd Aug 2021 12:34

thanks all, I was hoping that would be the answer/consensus.

Thanks (0)
avatar
By Hugo Fair
03rd Aug 2021 12:36

Despite the other responses, which are probably OK pragmatically, I'm not sure why you'd chance your arm (or rather your client's arm) with regard to late payment penalties - merely for the sake of a £1k/qtr temporary improvement to cashflow.

There is no data item within RTI to inform HMRC that you've decided to change the frequency of payment to them - which no doubt is why the recommendation is to 'phone them (more as a notification in advance than a 'request').
Otherwise, by default, your FPS & EPS filings will be 'feeding the meter' of what is owed to HMRC ... and a lack of the expected monthly payments will trigger automated warnings and then penalties.

Thanks (1)
Replying to Hugo Fair:
RLI
By lionofludesch
03rd Aug 2021 13:02

Hugo Fair wrote:

Despite the other responses, which are probably OK pragmatically, I'm not sure why you'd chance your arm (or rather your client's arm) with regard to late payment penalties - merely for the sake of a £1k/qtr temporary improvement to cashflow.

There is no data item within RTI to inform HMRC that you've decided to change the frequency of payment to them - which no doubt is why the recommendation is to 'phone them (more as a notification in advance than a 'request').

Whose recommendation is that?

Thanks (0)
Replying to lionofludesch:
avatar
By Hugo Fair
03rd Aug 2021 14:23

The guidance to which OP referred at the start. Yeah, I know it's only GOV.UK ... which is why I used the term 'recommendation' rather than 'rule' or whatever!

Thanks (0)
Replying to Hugo Fair:
avatar
By mbee1
03rd Aug 2021 13:05

Hugo Fair wrote:

Despite the other responses, which are probably OK pragmatically, I'm not sure why you'd chance your arm (or rather your client's arm) with regard to late payment penalties - merely for the sake of a £1k/qtr temporary improvement to cashflow.

There is no data item within RTI to inform HMRC that you've decided to change the frequency of payment to them - which no doubt is why the recommendation is to 'phone them (more as a notification in advance than a 'request').
Otherwise, by default, your FPS & EPS filings will be 'feeding the meter' of what is owed to HMRC ... and a lack of the expected monthly payments will trigger automated warnings and then penalties.


Depends how much time you have on your hands and want to wait for up to an hour waiting for the Employers Helpline to answer the phone.

The rules are quite clear. You pay monthly unless and employer, over the course of a tax year, expect their average monthly payment to be less than £1,500 (£18,000) for the full year) when you can pay quarterly. you don't have to notify HMRC at all as the computer system will identify it. Never had a problem with erroneous interest and penalty charges.

Thanks (1)
Replying to Hugo Fair:
avatar
By rmillaree
03rd Aug 2021 14:02

Hugo Fair
"Otherwise, by default, your FPS & EPS filings will be 'feeding the meter' of what is owed to HMRC ... and a lack of the expected monthly payments will trigger automated warnings and then penalties."

Is this a known fact or a presumption of yours?

Thanks (0)
Replying to rmillaree:
avatar
By Hugo Fair
03rd Aug 2021 14:32

The first part (the feeding the meter process) is a known fact.
Whereas the automated trigger is a bit of a hybrid (i.e. the existence of the trigger for the automated generation of penalties is a known fact, but the need for it to be switched off somehow is more of a presumption).
The unknown is what the word 'somehow' represents. I took at face value the guidance that calling HMRC would do it (which suggests they then manually set a flag), but other responses seem to suggest the software is 'intelligent' enough to set the flag without direct human intervention.
They may well be right, although my willingness to rely on HMRC software's ability to intuit when to perform actions is exceedingly light!

Thanks (2)
Replying to Hugo Fair:
avatar
By rmillaree
03rd Aug 2021 17:09

"but other responses seem to suggest the software is 'intelligent' enough to set the flag without direct human intervention.
They may well be right, although my willingness to rely on HMRC software's ability to intuit when to perform actions is exceedingly light!"

My recollection was always that the software should be able to cope and only defaults to monthly calcs ref demanding payment where there is evidence payments are over the monthly limit. Even then i think they normally do specific letter warning bods they must pay monthly too.

I ain't checked in a while though and as you say if hmrc are asking bods to check it would suggest there is a reason why they are saying that - albeit i suspect it may simply be for historical reasons that they have never twigged it may not need to be done now - anyway i like others seem to be presuming too much so i will hide back under my pile of paperwork.

Thanks (0)
Share this content