PAYE real time information post-implementation review – working with HMRC

ICAEW Tax Faculty has written to HMRC (ICAEW Rep 15/18) offering to assist in taking forward its PAYE real time information (RTI) post-implementation review (PIR) report published on 7 December 2017 (reported in our earlier blog).  

ICAEW Tax Faculty has suggested in its letter some quick fixes that would help RTI to fulfil its potential of delivering benefits and underpinning personal and business tax accounts, rather than imposing continuing burdens on employers, intermediaries and agents – and HMRC. 

The proposed suggestions would:

  • resolve data quality issues, for example coding errors caused when individuals change jobs and starter information is filed before leaving information,
  • eliminate duplicated employments, by progressing work on payroll identifiers, and,
  • simplify the earlier year update process, by enabling employers to correct HMRC’s figures by overwriting them (rather than, as at present, having to tell HMRC by how much its figures need changing, which involves ascertaining what HMRC’s figures are, which the PIR acknowledges is not always easy). 

The Tax Faculty also suggested that ‘flags’ be introduced so that employers can notify HMRC of modified payrolls (ie where employees are expatriates) and deemed employees (within the public sector off-payroll working regime). 

How is RTI working for you? What do you think is the top improvement that should be made to RTI?  Please post your ideas below or contact