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Some honesty would be a start
Like BASDA and AccountingWEB's members, we look forward to seeing a more open dialogue on the subject.
Every time that HMRC announces a postponement of penalties, they claim that it is to allow (small) employers more time to comply when, in fact, we all know that it is because HMRC needs the time to improve its computer system.
RTI and BACS hash matching
It's been quite a while since I saw any stats on the success rates of HMRC matching hash data in FPS returns with the data supplied by Voca from the Bacs submissions, but in the early days I believe there were high numbers of discrepancies. Maybe the matching rate has improved, but if not I can only think the idea of using the hash data may turn out to be:
a waste of HMRC's time/resource, oranother way of identifying errors in returns so that more penalties can be imposed, or a diversionary tactic (look, squirrel!), orpart of a cunning plan to return to HMRC's preferred data submission route for RTI returns which was via Bacs.
I dread to think of the volume of discrepancies in data entry which will arise when employers and pension payers have to manually enter the hash data in FPS returns and in the internet electronic payment records. As things stand HMRC's BPT calculator does not generate a hash string etc.
RTI hassles
The company I work for had a visit from an hmrc revenue collector recently. I had failed to keep marking the 'claiming employer NI allowance' field with each return. We had claimed the whole allowance in one month as out NI levels enabled us to do that. As there was no more to claim I stopped setting the flag in subsequent months. They removed the whole allowance and treated us as £2000 in debt. At no point did anyone just contact us to ask if we really were claiming the allowance. They sent a letter while I was on leave and a couple of days after the letter arrived along came the revenue collector. I have attempted to make a formal complaint.
EA Indicator
As far as I'm aware it's only necessary to enter the EA indicator once in an EPS. It's not necessary to repeat this in subsequent EPS returns.
Agents access to Dashboard
Clients keep giving us their demand notices from HMRC but I can't do anything with them because I don't know where HMRC are getting their figures from without access to the dashboard. When clients give me their ids/passwords then I can help but I mentioned in a phone conversation with someone in HMRC that this was happening and he said "this phone call is being recorded you know" !
Dashboard
We have applied for access to the dashboard on behalf of about 150 of our clients as we need to see the account. As far as I am concerned HMRC have put us in this situation whereby we have no choice but to take this action. you cannot even phone up and request a copy of the account anymore so what do they expect?
no help for very small concerns
A six month delay in imposing penalties is not going to change the difficulty in always getting the returns "on or before" payday for me. I usually do, but being a sole practitioner, and with cafe client(s) who pay staff weekly, variable number of hours, so I can't post in advance - am I not allowed a holiday/sickness/other?
Sorry, I know it's been said many times before on this site, but I just thought I'd day it again!
Another repeat
What do those clients pay to their variable hour staff if you are off for holiday/sickness/other? Do they have to guess the net pays? This is not an RTI problem. This is a "dealing with PAYE incorrectly in a way no longer possible because of RTI" problem.A six month delay in imposing penalties is not going to change the difficulty in always getting the returns "on or before" payday for me. I usually do, but being a sole practitioner, and with cafe client(s) who pay staff weekly, variable number of hours, so I can't post in advance - am I not allowed a holiday/sickness/other?
Sorry, I know it's been said many times before on this site, but I just thought I'd day it again!
If you haven't got cover for such a time-sensitive service, you should not be offering it. Cue accusations that I don't live in the "real world" where no-one cares about the risk of over/under paying employees if the calculations aren't done properly. (a problem that has existed as long as PAYE has)
As long as I'm somewhere that I can get a signal I can usually work round it. I am well aware that the world doesn't easily accommodate tiny technophobe businesses such as this particular client.
It would just be easier if there was a little leeway, that's all.
Filing by 19th of month following is by the best solution
It has been asked for many times as the sensible and pragmatic solution to many of the practical problems. Why don't HMRC listen and do it? If they did they would not be embarassed every 6 months when they have to delay the implication of the penalty regime (again).
I will continue to file on the 10th of the month, continue to receive (and ignore) loads of generic notifications about late delivery. All my clients are micro-entities so they are not penalised.
If HMRC help us, we can help them. But if they continue with their unhelpful attitude, I will continue with mine.
Dashboard
Rather a stupid name, but there are a number of problems with the client's online PAYE account:
it is not available to agents (you have to log on as the client).it is updated, I believe, only twice a month - whatever happened to Real Time?HMRC tends to allocate payments on a FIFO basis, not to the tax month indicated in the payment reference, so you have to work your way back through split payments to trace where any discrepancy might have arisen.some of the entries on the PAYE account are simply wrong.
Keep it Simple
Reporting: By 19th of Month
Payments: Issue a full statement
Services: Don't do payroll, let someone else have the headache.
Well done AccountingWeb and its members
Well done to Accounting Web and its members for keeping the pressure on HMRC re RTI, if its saves clients paying fines and the fall out for Accountants its well worth it, well done all :)
Employer's view
Now that RTI has been in force for a year and a half, the general ineptitude of HMRC is the reason that I am not surprised that they are still making errors on individual's records.
Several times I have received coding notices which make incorrect assumptions about the person's earnings split between two jobs, meaning that they end up overpaying tax, or even underpaying. Many people are on fairly low incomes, so it is important that their income is consistent and correct.
The RTI system should ensure that tax is levied correctly, but it doesn't.
This then forces the individual to have to contact HMRC to discuss and correct the situation, often when they don't really understand it. Goodness knows what will happen wit Universal Credit.