What is RTI for?

What is RTI for?

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Just finished a frustrating call to HMRC.  I pointed out that a code number for next year was wrong because they were using a poor estimate of total income.  Because I did not have a 64-8 in place (which I am rectifying), I could not correct their estimate.

But it made me wonder whether HMRC are using the information they get from RTI.  Because if they were they would have been able to make a much better estimate of total income.

Does anyone know what happens to all the RTI information.  Is it ignored (except for chasing employers); does it just go in a big pending tray like P35s used to, or how do they process it?

Replies (8)

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By nogammonsinanundoubledgame
13th Feb 2015 15:17

It is mostly for ...

... Universal Credit purposes, which is very slowly getting rolled out.

With kind regards

Clint Westwood

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RLI
By lionofludesch
13th Feb 2015 15:22

To be fair .....

To be fair, I do get a coding notice within a couple of days of a new employee signing up.

On the other hand, I have a case where a client's employee started on 1st December, gets paid monthly, so he's only had two payments so far, and he's already had four tax codes !!

I quite like RTI.  I just think it's administered with a very heavy hand.  Or will be when penalties really kick in.

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By MzEden
13th Feb 2015 16:11

lionofludesch - You're lucky

lionofludesch - You're lucky then as I have several employee's, in different companies who have been employed for 6/7 months and STILL have not had an amended tax code. 

We HAVE to send HMRC the information by 5th of the month or we get fined but there doesn't seem to be a very swift return of info from them.

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Replying to David Gordon FCCA:
RLI
By lionofludesch
14th Feb 2015 09:26

Parity

MzEden wrote:

lionofludesch - You're lucky then as I have several employee's, in different companies who have been employed for 6/7 months and STILL have not had an amended tax code. 

We HAVE to send HMRC the information by 5th of the month or we get fined but there doesn't seem to be a very swift return of info from them.

I'm all for parity.  It'd be nice if HMRC would send you £100 every time they made a mistake.

And only fair too.

Now, where's my copy of the Universal Declaration of Human Rights ?

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By Roland195
13th Feb 2015 16:29

What is RTI for?

Officially, to ensure the information required for Universal Tax Credits is available. The ability to collect tax debts more efficiently and of course, levy fines are bonuses.

As to if they will act on or use the information they insisted on having, I doubt it. HMRC departments still don't cooperate with each other, let along rival organisations like the DWP.  

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By petersaxton
13th Feb 2015 18:00

Collecting money

HMRC could easily think up more rules and then issue penalties for any late compliance.

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By Smartie99
13th Feb 2015 20:27

I have a 40% tax payer on BR for 18 months now - she's wasn't impressed with her tax bill!

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By Behindthedoor
15th Feb 2015 17:11

Business as usual
I've had a few cases now where the P60 details have never reached the taxpayers record. (That may not be so obvious with self assessment clients because the gaps are filled in by the tax return.)

I have queried how this is possible with RTI and with the employers being large companies who presumably know what they are doing.. The Revenue response is a weak " oh yeah, we'll it shouldn't happen really"....... I don't have the time to take it any further.

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