Real Time Information

On 14th November HMRC published the draft Regulations to establish the legal basis for submissions under the Real Time Information initiative. HMRC have asked for feedback and comments by 9^th January 2012.

Unlike the previous documents, HMRC are not asking specific questions.  They are asking for feedback as to whether the draft legislation will achieve their objectives and whether software suppliers or employers can spot any difficulties in complying with the regulations.

We have some concerns with the practical effects of some of the amendments.  We will be including these concerns in our feedback to HMRC and we would like to give you the opportunity to make comments that can be included in that feedback.  To help us formulate our response we have created a short (5 question) survey for you to complete together with a field for you to add any other comments you may have.  The survey can be found on http://www.surveymonkey.com/s/KSHK3W8

Payroll Alliance have reported an error in the current P9x and subsequent employers Helpbook E12 guidance in relation to the operation of tax codes for new starters who provide a P45.

The E12 states: Where the employee’s date of leaving on the P45 is between 6 April 2010 to 5 April 2011and they start working for you during the period 6 April to 24 May 2011; use the tax code on the P45 do not carry forward any week 1/month 1 markings and enter 1 on the P11. 

Historically this instruction included an uplift to tax codes ending in suffix L, which for 2011/12 should be 100 points.

HMRC will be amending current guidance in the E12 along with the Budget edition of the disc containing the Basic PAYE Tools.  There should also be a message in the April edition of the Employer Bulletin regarding this error.

The guidance will be amended as follows:

Employee starts working for you during the period 6 April 2011 to 24 May 2011

Use the tax code on the P45 and add 100 to any tax code ending in L, for example 647L becomes 747L, but do not carry forward any week 1/month 1 markings from the P45 and enter in box L of the P11.