More RTI pain
The introduction of real time information (RTI) is creating new ways to fall foul of HMRC’s views on how payrolls should operate.
For example, it’s important to report the actual date that employees are paid, and not to use the date the payroll is run, which could be earlier or later. If the payroll date is used, the PAYE deductions shown as due to HMRC could fall into a different tax month to that for which they ought to be paid. Such a mismatch leads to the deductions on the Full Payment Submission (FPS) becoming misaligned with the amounts reported on the Employer Payment Summary (EPS).
For example, where employees are paid on 8 July but the payroll was calculated on 4 July, the FPS should show the payment date as 8 July and the tax month as 6 July to 5 August, not payment date as 4 July in the tax month 6 June to 5 July.
If you believe you have fallen into this trap, we can help you out – give us a call.