PAYE RTI nightmare

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Laura8192
Laura8192 Registered Posts: 95 Epic contributor 🐘
in General accounting discussion
Hi

My very first client (I'm a new Member in Practice) has recently taken on a member of staff. So I applied for a PAYE scheme for her, and during the application and on the letter with the reference numbers on, it says that as we registered after 6th November 2012 we must start RTI now and not in April 2013.

I thought thats fair enough, and accordingly downloaded the Basic PAYE Tools for RTI, entered all the required details for employer and employees, and tried to submit the data. After several failed attempts, I phoned HMRC, and it turns out that there is no mandated date on my clients records and she should just submit P14s and a P35 at the end of the tax year and go on to RTI in April with everyone else, unless she receives another letter from HMRC in the meantime with a mandated date on it!

I am sure this will not be the first time I am fustrated by HMRC, the lack of communication and the fact that I am told one thing that turns out to be totally wrong, but I just wanted to share my fustration with you all!

Thanks
Laura :-)

Comments

  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    Laura8192 wrote: »
    I am sure this will not be the first time I am fustrated by HMRC, the lack of communication and the fact that I am told one thing that turns out to be totally wrong, but I just wanted to share my fustration with you all!

    Welcome to practice :)

    I've not had the pleasure of investigating RTI yet (job for February) - I can't wait :(
  • zara5034
    zara5034 Registered Posts: 170 Dedicated contributor 🦉
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    I could be wrong here, but I didn't think HMRC could insist that a new employer file in real time until April 2013, I am currently setting up new employers and have been given the option to file in real time now, but I have said 'no' as my software is not yet ready.although I know it will be by April 2013.
  • payrollpro
    payrollpro Registered Posts: 427 Dedicated contributor 🦉
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    Hi everyone, yes a badly worded communication here. Zara is quite right, no one can be manadated to start live RTI until week 1, April 2013. What the letter was attempting to say is that as a brand new PAYE scheme the employer must go live immediately and cannot use the leeway allowed till October 2013.

    This is ridiculous now since HMRC have done a u-turn on their promise to allow all micro and small employers till end of September 2013 to comply. We are all mandated to start in April 2013 whether we like it or not and hence Laura's new client is not being asked to do anything which does not apply to any other employer anyway. It is only large employers who will be able to escape their RTI till July at the latest simply by avoiding the pilot scheme.

    Please keep your RTI experiences coming, we need these for when we represent you all at HMRC consultative forums.

    Payrollpro
  • sloshed
    sloshed Registered Posts: 100 Dedicated contributor 🦉
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    Hi

    Hope you do not mind me tacking on to this thread. I am not actually a MIP but employed as a payroll manager.

    My problem with RTI is a bit unusual but hopefully it is something that 'Payroll Pro' can take up under the consultative forums.

    I have a client who is a partnership which has a limited company partner. For reasons of confidentially they employ the managers through the partnership and pay them bonuses through the Limited Company Partner. As they are clearly in only one employment, the NIC needs to be aggregated as detailed in the CWG2 guide.

    Historically, I have filed the P35 via the HMRC website as I was able to over ride the NIC calculation (I.E. Pay over NIC on the full amount of the bonus) With the withdrawal of this facility and no payroll software being able to deal with aggregated NIC, how do I comply with the legislation?

    Hopefully this makes sense, but please do not hesitate to send me a PM if you need any queries.

    I have tried to put this question to HMRC via there RTI workshops but they failed to grasp the problem and just got the standard response 'RTI does not change this process'

    Many thanks

    Sloshed
  • Rozzi Rainbow
    Rozzi Rainbow Registered Posts: 465 Dedicated contributor 🦉
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    sloshed wrote: »
    ... no payroll software being able to deal with aggregated NIC, how do I comply with the legislation?

    Sage Payroll has a 'Manual NI entry' option, which sounds as though it could do what you need it to. I have never used this option, so don't know about it in detail. I've seen many discussions on here that suggest there are better (for most people's needs) or cheaper software options availalble, but as I have only ever used Sage I can't advise on any others.

    Hope you can get something sorted by April.
  • Aidanger
    Aidanger Registered Posts: 3 New contributor 🐸
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    RTI pilots

    Hi Guys,

    Yes the HMRC communication is a bit inconsistent to say the least. It might be worth contacting the Payroll software companies who have participated in the pilot scheme in the pilot scheme in the first instance as I'd say they know exactly whats going on!! There are also quite a few blogs on it too. The trouble with the HMRC is that the detail is overly and unnecessarily detailed!

    Just a suggestion!

    Aidan
  • sloshed
    sloshed Registered Posts: 100 Dedicated contributor 🦉
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    Thank you for the replies - have sage payroll as well as other software will try a dummy run and will let you know how I get on.

    Thanks again

    Sloshed
  • E Storey
    E Storey Registered Posts: 32 Regular contributor ⭐
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    Any Idea how the banks are going to work this? My clients set up individual payments and no bank has a "RTI" button set up yet?

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