RTI Update: Reconciling PAYE

 

Reconciliation of PAYE is causing concerns.  Underpayment notices are being issued when no fault has arisen.  HMRC have recently published a message on their website:

 

‘We have received feedback that some PAYE schemes have experienced difficulties in reconciling the difference between:

 

– the tax we say is due, and

 

– the tax they think is due

 

We have set up a dedicated team to identify the cause of these discrepancies. The team is working with a number of PAYE schemes to work through their examples to examine what is causing these discrepancies, and then to resolve them.

 

This will also enable us to understand the issue in greater depth, and take the steps necessary to prevent them arising in the first place

 

Each time we identify a root cause we will update our guidance, where appropriate, as soon as possible. We have already updated the section of our guidance for employers using HMRC’s PAYE Online, to make it clearer when we update this information, and what information will be available at any given time.’

 

It seems that HMRC are having problems settling RTI in.  In some circumstance employers are being hounded for payments and threatened with fines and penalties even though this first year, employers were assured, no penalty situation should arise.

 

Margaret Merrifield

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