Employers get warning call over RTI

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The introduction of real time information, including a new electronic messaging system for communicating with HMRC, may strain relations between employers and payroll providers, a credit management company has said.

Penalties for late PAYE returns start from April 2014. Although employers will pay any penalties it will be up to payroll departments or payroll suppliers to ensure that payroll information in compliance with new rules.

“The sheer scale of RTI and the scope for automated penalties in what is a very complex real-time reporting infrastructure leaves the payroll provider highly exposed for all issues that arise,” said CreDec, a company which provides credit management services to SMEs.

Time spent helping customers comply with RTI rules, including providing customers with information to challenge HMRC penalties, could squeeze profit margins for payroll providers, CreDec added...

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About Nick Huber

Nick Huber profile image

I’m a specialist business journalist and have a particular interest in tax and technology. 

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04th Nov 2013 12:58

HMRC Messaging late returns

If the Messging is as accurate as the business dashboard then we could all be in a lot of trouble. I have been told already to ignore the figures on the dashboard by HMRC as they are incorrect. Ive also been told we owe money on one of the submissions when the figures they have are different from the copy of my submission and the fully reconciled payments.

Before they start to do this they should get their house in order and ensure their system is working properly, they already waste a huge amount of Companies time

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04th Nov 2013 13:25

Electronic messaging

Sounds good - but what form will these messages take? http://www.hmrc.gov.uk/news/electronic-notifications.htm states how they will be communicated to employers. I guess many employers will use payroll agents. Will agents be aware that a message has been sent and if so, how will it be dealt with? HMRC's page admits some commercial software might not be able to receive the messages. Do we know which products?

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05th Nov 2013 08:43

Sent via DPS

These messages are sent via the Data Provisioning Service (DPS), which is the same service that sends the electronic tax code and student loan messages, so you would pick the new messages up in the same way, assuming your payroll software supports the new message type.

Sage Payroll supports these messages and you can see them within the Secure Mailbox option.

Regards

Gary

Sage (UK) Ltd 

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