RTI and annual payrolls

RTI and annual payrolls

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A reasonable number of payroll clients have "annual payrolls" with the employees - usually a director or two - being paid only once a year. In the past HMRC has marked these as annual payrolls and not chased for monthly payments of nil.

Under RTI it is important that such a system can continue as to have to file nil returns every month would be tedious, a waste of time and costly.

However HMRC seem to be deeply suspicious of these (are we absolutely sure they are only paid one a year? How do we know? etc)  and have said that each one must be investigated thoroughly. This can be done over the phone and (we are told) will take about half an hour each. Also they are only prepared to deal with 2 or 3 in any one phone call.

It is possible to apply in writing but who knows how long it will take to get a reply - and what should be done in the meantime,

Any suggestions or ideas greatfully received!

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Euan's picture
By Euan MacLennan
27th Jul 2013 16:09

We are now in Month 4 of RTI

Isn't it a bit late to be asking this question now?  What have you been doing in the first 3 months of 2013/14?

HMRC had suspended processing applications for annual schemes.  At least, it is good to know that they announced on 25 July that they have now resumed service, even if only dealing with 2 or 3 at a time.

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By frustratedwithhmrc
27th Jul 2013 22:27

Ye Gods

"However HMRC seem to be deeply suspicious of these (are we absolutely sure they are only paid one a year? How do we know? etc)  and have said that each one must be investigated thoroughly. This can be done over the phone and (we are told) will take about half an hour each. Also they are only prepared to deal with 2 or 3 in any one phone call."

What a complete and utter waste of time.

The reason most clients pay themselves only once a year is they want the maximum tax free amounts to use up their allowance, but don't want the bureaucratic hassle of operating PAYE or RTI.

Where does HMRC drag these morons up from?

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