RTI Emp Allowance - HMRC errors, what do we do?

HMRC are processing too much Employment Allowance

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Is this a growing problem or have HMRC singled us out for special treatment?

We have had a couple of cases now where we process the client's payroll and have claimed Employment Allowance, only to have HMRC credit the client's account with too much, for example Month 1 RTI filed - Tax due £47 Employees NI due £nil, Employers NI £40. Employment allowance posted by HMRC £87 not £40. So HMRC show total due for the month as £nil

The same is repeated for Month 2.

Client paid £47 which is now shown as unmatched.

Do we spend time on the phone to HMRC to get them to sort it out, or do we carry on and hope it resolves itself before the end of the current tax year?

Replies (3)

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By SkyBlue22
25th Jun 2024 11:35

As it's only June, I would probably ring now.

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By FactChecker
25th Jun 2024 14:27

Do please let us know of any response from HMRC ... and general progress (if any).

[Wonder whether you'd get any SL deductions or SxP payments also 'refunded'?]

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By the_fishmonger
26th Jun 2024 10:17

The problem with HMRC systems is that they aren't set up to treat things as an accountant would. We allocate mth 1 to mth 1 and that is fixed for good.

The system teems and lades EA, CIS suffered & payments received as it sees fit, regardless of references that may be sent in. It even changes them later if the fancy takes.

I may be teaching granny but, look on the HMRC PAYE account for the client and:
1) check which EA is being used against which month.
2) check upcoming payments to see if HMRC have any unused or unallocated figures showing

A client paying when they shouldn't, CIS & Stat Pays can all cause the latter. We had one where HMRC even recorded receipt of the same payment 3 times.

I have seen CIS suffered for a month matched across various months over 4 years and EA switcheroo the moment you have a 'Resolution Team' interaction. There's little doubt that some at HMRC are good at what they do, but I think the programming leaves insufficient flexibility to fix things correctly.

Ultimately, it leads to much banging of head on walls and lots of phones on speaker playing that awful ditty on loop, in waves akin to the London's Burning, London's Burning that we wuz taught as kidz

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