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RTI inaccuracy penalties - What's the punishment?

RTI inaccuracy penalties - What's the punishment?

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Took over a client where there's wifes wages of about £4k.

There's already a PAYE scheme for another employee, so of course the wifes wages needs to be reported via RTI.

She doesn't actually have another job though, so there's no actual loss of tax.

With this being done incorrectly for the last few years - would there be any actual repercussions for the client beyond a finger-wagging from HMRC? 

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28th Nov 2016 12:26

I cannot speak for HMRC, but I doubt that their computer system would even notice if you put her correct pay YTD on the next FPS to be submitted in 2016/17.

£4k seems an odd amount to pay. Not enough to qualify for state pension, but at £75 a week, it appears that she is doing perhaps 10 hours a week (I know that NMW does not apply in this case, but it is a guide to the hourly rate) to justify the deduction from the husband's profits.

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By NYB
28th Nov 2016 13:04

Last Few Years? Sounds as though it would be a mammoth task to do and I suppose it will generate RTI notices or whatever they send. If it was me I would start it from now. As you say there is no tax lost but the effort of getting HMRC off your back could be quite time consuming

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28th Nov 2016 14:23

Thanks for the replies.

The wife is over state pension age (although doesn't receive a pension), and also receives a share of partnership profits (from a different business).

I haven't yet looked into justifying the wage yet, but will look into it.

I'll make sure she goes on the payroll going forward anyway, but just wondered if there is any cause for concern over the previous years. There doesn't seem to be though.

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28th Nov 2016 15:31

Provided that the income has been included on her Returns (which I assume she's been completing if she's a member of a partnership) then HMRC should be happy that they've had all that's due.

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