Member Since: 7th Aug 2002
Kate is a technical writer, editor and lecturer on all aspects of employing people - primarily payroll and HR matters.
Owner Kate Upcraft Consultancy Ltd
16th Nov 2017
For the simple reason already outlined here a)they have to accept there are issues in their system and b) ask for money to fix them. I’m hoping a and b might happen before I retire but as I’m only due to work for five more years I’m not holding my breath!
15th Nov 2017
Some of you will know I write about this on accounting web regularly reflecting what I hear every day from agents and employers when lecturing. I only run 4 Payrolls these days to help local charities and two have disputed charges. HMRC have recently stated in an answer to a PMQ that they receive 590m records p.a. Via RTI. We must remember that Each disputed charge is caused by taxpayer (that’s employee and pensioner) records being corrupted which now can have very significant consequences thanks to the deployment of dynamic coding in July by HMRC and the accelerated rollout of Universal Credit. With 590m records, One system relying on invalidated corrupted data is bad, two together spells meltdown for some people’s finances and the employers and agents that support them
9th Oct 2017
The Business Tax account has been upgraded - I use the term loosely - I wrote about the planned changes in my article https://www.accountingweb.co.uk/tax/hmrc-policy/business-tax-accounts-ge.... However, when I logged in to my scheme about 10 days ago I was not impressed with the layout or the fact the payment page had been removed. So, I contacted HMRC and spent last monday pm with the BTA developers and they were very receptive to all my feedback so I'm hopeful we will get all the functionality back and more (eventually!)
14th Sep 2017
Interesting that a 'technical expert' said to Rhino83 'don't rely on the figure in your business tax account'. As I wrote in my recent article https://www.accountingweb.co.uk/tax/hmrc-policy/business-tax-accounts-ge...
the BTA has had an upgrade that finished roll out this week (although the breakdown page and the DMB payments received page has now mysteriously disappeared but should remerge I'm told). The data is now called from a different part of HMRC so from now on is supposed to match RTI data exactly, so any discrepancies are real now and need to be followed up as a disputed charge. Only as part of this roll out have they admitted that for the last four years there were batch processing errors that led to the liabilities displayed not matching what they could see. As to the DMB figures I don't expect any improvements in payments recorded and allocated as ETMP still seems unpredictable and unstable!
I too like lionoffludesch entered employee numbers for People's pensions for two employees in July and one duplicated and one didn't! I'm still pushing HMRC to get round the table and discuss how they have business rules that infer second jobs from simple changes to personal data. I'll probably retire before we start to see RTI working as HMRC's 'customers' need it to but at least I will have tried!!
12th Dec 2016
HMRC have recently confirmed in answer to a parliamentary question that there were 3.49m P800s for 14/15. For 2013/14 when RTI was introduced it went up from 3.6m to 3.95m. Of course PAYE is not an exact science so there will always be under and overpayments but clearly RTI has not improved matters. Underpayments are half the level of overpayments at 1.48m for 13/14 and 1.56 for 14/15. They have also said in 15/16 that nearly 41,000 PAYE schemes disputed their liabilities and each scheme of course can cover thousands of employers. So you can see why many of us are so concerned about the state of taxpayer data and the damage that does to employees and agents as well as the taxpayer
17th Nov 2016
Yes Euan is right, very odd that first quarter penalties due in early July went out over two months late and equally because the data cannot be relief upon they now all have to be risk assessed not automated so very few are being issued. In the MTD proposals the new PAYE penalty regime is outlined that will probably be from April 2018, but will need a wholesale improvement in data quality if it is going to happen. It does feel inappropriate as outlined in comments above that those who play fast and loose with the system have be really negligent before they are penalised
5th Sep 2016
I agree with all the comments here, the £100k income limit has been in place for years and anyone with this level of income who is ignorant of the operation of the U.K. tax system does need an accountant. The employer has no idea of someone's total income and even if the income from this one job exceeds £100k the employer could do no more than tell the employee to talk to HMRC. The comment about RTI data does need some explaining. Only from April 2017, four years after the implementation of RTI, do HMRC plan to use multiple income sources to amend tax codes in-year and nudge employees to check their validity via their personal tax account. Let's hope the data accuracy improves at their end and employees become engaged enough to check their tax account before they open their payslip and get a shock if their code is incorrect
30th Oct 2015
I think it's worth stepping in to clarify a few points on payrolling benefits given the registration tool has just been launched by hmrc for the roll out of voluntary payrolling (but on a formal basis) in April 2016 as more clients may well see this treatment on their payslip. When a BIK is payrolled a notional value (the CEV minus any made good /number of pay periods left in the year) is added to gross taxable pay. This achieves the tax payment and no money is actually paid so no corresponding deduction is made. The notional amount is not added to ni'able pay as class 1a is due at year end, so there is no class 1 NICs paid by employee or employer. I wrote about payrolling registration in my recent article for accounting web
18th Jun 2015
Gary is absolutely right we will stop reporting hours soon (!) when tax credit claimants have all moved to UC
2nd Jan 2015
since October you can set nil activity for 12 months
HMRC changed the validation on the EPS in October 2014 so you can do up to 12 months of 'nil activity' months in one go (previously six) so just do that at the start of the year and send the FPS in month 12 and remember to set the 'final declaration marker' - the questions have been abolished now for 2014/15 so that's one less job to do. If you pay the one month's salary ahead of month 12 you must still remember to do a final declaration via the EPS after 6th March