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HMRC sends out missing RTI deadline letters

5th Sep 2013
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Around 167,000 employers who have missed one or more deadlines for reporting PAYE information in real time will receive a letter from HMRC this month.

HMRC has warned employers who have failed to follow the new real time information (RTI) process to “act now” and start reporting in real time.

Earlier this summer, HMRC reported that 300,000 schemes that should be on the RTI scheme had yet to come out of the woodwork.

If employers have not reported because they don’t pay anyone, the PAYE scheme has closed or it is no longer operating, they still need to let HMRC know by calling our Employer Helpline.

It added that employers or agents, acting on behalf of their clients, who have set up unused PAYE schemes, should also contact HMRC to close them.

HMRC’s director general for personal tax, Ruth Owen, said: “Over 85 per cent of employers are now reporting PAYE in real time but our records show that 167,000 employers have yet to send us a PAYE submission. Reporting PAYE in real time makes it easier for employers to pay HMRC the right amount and avoid late payments and penalties.

“If agents have set up, on behalf of their clients, PAYE schemes that have never been used - or their clients’ PAYE schemes have now ceased - they should call HMRC to close the scheme.”

HMRC said employers should either submit a nil Employer Payment Summary (EPS) each month or contact them to change the scheme to annual and then send us a nil EPS once a year.

HMRC is not writing to employers who have registered their PAYE scheme as an annual scheme.

So far 1.6 million employer PAYE schemes, covering more than 40 million individual records, are now reporting under RTI since the launch in April.

PAYE information reported in real time is already being used by the Department for Work and Pensions (DWP) to calculate Universal Credit amounts paid to people in its pathfinder pilot in the north west of England, ensuring the amount of benefit accurately reflects their level of income.

Employers who have already missed a deadline for reporting PAYE information received a letter in June. HMRC also wrote to all employers in October 2012, and again in February 2013, to let them know how to prepare.

Have you received a letter from HMRC for missing an RTI deadline?

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Replies (13)

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Chris M
By mr. mischief
05th Sep 2013 19:49

Ha! Pull the other one!

I have two clients for whom HMRC are refusing to accept RTI submissions.  The reason is they say the schemes were closed.  If true, it is nothing that either the client or myself asked HMRC to do - both box standard schemes with just one or two directors on them.

The news that Universal Credit looks like being one big abortion is making me especially upset - all this RTI hassle for nowt.

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By TaxTeddy
06th Sep 2013 07:34

A siver lining for HMRC

Fair point but I doubt if HMRC agreed so readily to RTI just to facilitate the Universal Credit. It's all about information and, as we know, information is POWER.

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By taxhound
06th Sep 2013 08:40

If RTI is so great

Then how are HMRC STILL managing to credit paye payments to the wrong period and get in a total mess over what is owed.  One client recently had a demand that was all wrong due to misallocation of payments, which they should be able to sort themselves now....

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Replying to Kenny1002:
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By ringi
09th Sep 2013 15:37

Give them time

taxhound wrote:

Then how are HMRC STILL managing to credit paye payments to the wrong period and get in a total mess over what is owed.  One client recently had a demand that was all wrong due to misallocation of payments, which they should be able to sort themselves now....

 

You are being a little unfair; it will take at least a year until HMRC can assume that all employers will use TRI.   

HMRC cannot really risk updating all their other systems to depend on RTI until they know that they are getting TRI data for most employers/employees.   Then the updates will have to be fitted in with other work, so I don’t expect we will see the RTI information being used by most of HMRC until next year.  

Before then, HMRC can start to put in reports that tell them when anther systems have data that does not much RTI.

I expect in 5 years time, we will not understand how a benefit system could have worked without the RTI system, but there is always pain before the gain.

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Replying to Kenny1002:
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By maxsteel
13th Sep 2013 14:40

Misallocation of payments

Payment misallocations tend to occur if the reference number used when making the payment is incorrect. The PAYE reference should total 13 characters followed by the year then month the payment should go to. eg 123PP001234561401 is a payment for 2014 month 1.

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Should Be Working ... not playing with the car
By should_be_working
09th Sep 2013 11:36

Survey

I see HMRC are also sending out survey requests to employers/agents to see how we're managing with RTI.

No doubt this will feed into the decision of whether to make the temporary arrangements for small employers permanent. Our response (truthfully completed, of course) suggests that this would be a sensible option.

 

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By taxinfo
09th Sep 2013 11:54

Quote......

"HMRC said employers should either submit a nil Employer Payment Summary (EPS) each month or contact them to change the scheme to annual and then send us a nil EPS once a year.

HMRC is not writing to employers who have registered their PAYE scheme as an annual scheme."

 

Can someone tell me how to register our small one-person schemes as "annual" to avoid the NIL monthly EPS submissions?

I thought the Revenue were putting "annual" schemes on the back burner and not setting any up at the moment.

Or has that now changed?

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By nadinepiper
09th Sep 2013 13:36

I thought it was too good to be true!

After the fiasco of the paye coding a few years ago (with many people supposedly owing money to HMRC from wrong tax code), I have put my faith totally in RTI (well, not quite); but have to say I am not surprised to hear of the current upsets.  Everytime I make an FPS I ask "what will happen if I miss a submission on/or before the staff is paid"? I have so far trained my clients to give me the information "on or before" but I can see disaster looming. Does anyone know what really will happen?

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By Jon Darlington
09th Sep 2013 14:04

RTI was not for Universal Credit

The requirement for RTI has been sold to us as a necessity due to the introduction of the Universal Credit so it is understandable that Mr Mischief and a lot of us think it is hassle for nowt.  But RTI is a means of control that was planned to be introduced anyway. It was developed by HMRC before the Universal Credit was first announced at the 2010 Conservative Autumn Conference. The consultation document "Improving the operation of PAYE" issued on 27 July 2010 introduces RTI thus:

"HMRC has developed an option – Real Time Information – to obtain the information on deductions from employers on a real time basis. This would enable the PAYE system to cope much better with the work patterns of today which involve many more changes of jobs and rates of pay than in the past. It would also reduce the number of people needing an adjustment to their tax position at the end of the year." (my emphasis on "has developed")

  

 

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By Kate Upcraft
09th Sep 2013 14:08

annual schemes

yes these can be set up now but of course only with effect from April 2014 so for the rest of 203/14 you need to do advance 'nil activity' EPSs and then in the one month the director is due to be paid send in the FPS, then get them on to annual for next year 

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By adagen
09th Sep 2013 16:07

>>>HMRC is not writing to

>>>HMRC is not writing to employers who have registered their PAYE scheme as an annual scheme. <<<<

Being on the third attempt to stop HMRC claiming there are missing returns and missing payments on a scheme which was registered as annual well before the first letter was received, I find this statement rather lacking in credibility.

That also suggests that the 167,000 figure may well be an overestimate, since those records would be derived from a process which is not working properly.

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By chrisrei
09th Sep 2013 23:56

“If agents have set up, on

“If agents have set up, on behalf of their clients, PAYE schemes that have never been used - or their clients’ PAYE schemes have now ceased - they should call HMRC to close the scheme.”

After 7:30 pm weekdays and on Saturdays you can get through

What's happened to the 1,000 extra staff they were hiring to man the phones?

http://www.taxation.co.uk/taxation/Articles/2012/08/13/45161/taxman-hires-1000-extra-call-centre-workers

Hanging on the telephone

 

 

 

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By pippa
10th Sep 2013 16:37

annual scheme

I was told my annual scheme was being ended - but I have never had an annual scheme and I have always paid quarterly, a few days later I was told I owed PAYE for the first month and the last quarter of last year, one of which was not due and the other of which were paid!  So, not quite the marvel they were expecting!

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