Non Compliance

Non Compliance

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So far in general chit chat with people there is total ignoring of RTI in some quarters. I myself am doing a two day casual job next week where I receive cash in hand. There never is a payroll for when I do these odd days. Also had a word in passing with a coffee shop owner who said he never puts students/casuals through the payroll - only his few permanents. Said he had no intention of so doing an "no one puts students through - they are only students."

Question: How is RTI going to be monitored? Coffee Shop owner will be pretty unlucky to be caught.

When on an HMRC Webinar someone posed the question as to HOW did HMRC KNOW when wages were paid (on or before) there was a deathly hush until HMRC rep hrrmphd that on an inspection it could be seen as  evasion. Evasion of what? Correct tax/NI will have been paid over - just the submission date v wages payment date may be incorrect.

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By petersaxton
23rd Apr 2013 12:57

Forms

If the correct forms have not been completed and details submitted online then tax should be calculated, deducted and paid.

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By Ian McTernan CTA
23rd Apr 2013 13:11

MLR etc, reporting requirements...

You need to be careful about the conversations you have as you might create an obligation to report suspected tax evasion/money laundering.

Some enterprising HMRC employee is now looking for coffee shops near where you live with a view to starting an enquiry!!

You are also doing cash in hand work which needs to be declared, etc.

Having said the above, RTI is a bad joke thrown at us by HMRC where they seem to think we all have the time to waste doing it when most of us are busy trying to run our businesses, and payroll runs tend to happen haphazardly once a month or so.  We don't have payroll departments doing it for us, nor can we afford to pay for software or a bureau (quoted from a friend of mine who runs a small business).

All RTI will achieve is more cash in hand payments as a lot of people don't understand it and just won't use it.

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Replying to johngroganjga:
David Winch
By David Winch
01st May 2013 07:33

MLR reporting (not)

Ian McTernan CTA wrote:

You need to be careful about the conversations you have as you might create an obligation to report suspected tax evasion/money laundering.

Some enterprising HMRC employee is now looking for coffee shops near where you live with a view to starting an enquiry!!

You are also doing cash in hand work which needs to be declared, etc.

Just to point out that information picked up in a coffee shop (whilst not working) is not reportable by the coffee swigging OP because it is not information which "came to him in the course of a business in the regulated sector" reportable under MLR 2007 / s330 PoCA 2002.

If however the OP himself has income (from cash in hand) which he is not declaring for tax then he (just like any other citizen in the UK) is obliged to report himself to SOCA otherwise he is at risk of committing a money laundering offence himself under s329 PoCA 2002.

David

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By Maslins
23rd Apr 2013 17:44

I agree that RTI is a pain for very small owner managed companies who realistically don't have any kind of formal payroll run on a fixed date.  However, I do think it's well intentioned, and for all but these OMBs (of which I appreciate there are many) it should simply be a couple of extra clicks.

I too have no idea how HMRC would know when you physically made payments.  In particular, say a client always paid their salaries on the 15th but only got round to submitting the RTI return at the end of the month, could they really be punished?  HMRC would get monthly submissions, so I doubt it would raise any red flags.  Even if they did enquire, the right amount of tax could well have been paid, so it'd be pretty harsh to penalise.

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