Telling HMRC about payments with no tax or NI due

HMRC's Basic PAYE Tools asks for value of payments not subject to tax or NICs. Do we have to tell?

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In 2018/19, HMRC introduced new payment types into the HMRC Basic PAYE Tools, including "value of payments not subject to tax or NICs in pay period". Having failed to notice this until after a submission, I googled to see what it was about. I found that it was an RTI 58a field. But I couldn't see why HMRC were asking for it, and if it was mandatory to submit it – after all, I thought we were only obliged to tell HMRC information that enabled it to calculate/verify a tax liability.

Do we have to report these items? 

Replies (3)

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Tom McClelland
By TomMcClelland
04th May 2018 15:45

In certain situations HMRC can cross reference actual payments to employees with RTI submissions. If a payment includes expenses, for example, the cross referencing won't work unless the expenses are included in the RTI submission. The failure to match RTI submission with actual amount bank transferred might lead to a query.

In general the chances of this happening are probably slim however, particularly for the type of small employer processed by AW members.

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By Eavestile
05th May 2018 09:08

Basic PAYE tools last year could not cope with off payroll working payments but from April the new field provides a mechanism for doing so. HMRC guidance, however, is yet to be revised. It still says you don't need to report the payments.

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JCACE
By jcace
05th May 2018 22:15

This would be used where a company working in the public sector wishes to pay its director an amount of money that has already been taxed and NICed under IR35, but paid to the company.

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