Payrolling - how is it going?

How is PAYE in real time working for you/your payroll team/your clients now that the year-end is past? 

For example:

  • Are there duplicate employee records in HMRC’s database? These can occur when HMRC’s IT does not recognise an employee record so wrongly assumes that an additional employment has started. It might happen, for example, following a change in payroll software provider, or following the insertion of an employee identification number where none existed before (maybe a requirement of a pensions provider following the first employees being auto-enrolled), or sometimes the arrival of a new employee is recorded twice.
  • Are HMRC’s employer PAYE accounts showing the wrong figures or are you/your clients suffering from unwarranted requests from HMRC for payment? Are you being advised that the PAYE account is overpaid where the correct amounts have been paid to HMRC and HMRC’s employer PAYE account balance should be showing a balance of £nil?

Most real overpayments of PAYE are best recovered by offset against the following months’ liabilities, but if you/your clients are having trouble recovering a real PAYE overpayment please post a comment in our newsitem Tax repayments: how is HMRC performing in 2017?  

If you/your payroll team/your clients are experiencing problems with code numbers, please add a comment to our forum posting 2017/18 PAYE notices of coding – any problems?

Please list below your recent experiences – good and bad – of payrolling including reporting benefits-in-kind and expenses.

If you wish to send us an actual example of what has gone wrong that we can use in our ongoing discussions with HMRC to illustrate the point, please send details to Peter.Bickley@icaew.com along with the PAYE scheme name and reference number and the names and NIC numbers of affected employees.

  • If you run payroll yourself, you’ll need to report your employees’ payments and deductions to HMRC on or before each payday.

    Your payroll software will work out how much tax and National Insurance you owe, including an employer’s National Insurance contribution on each employee’s earnings above £157 a week.