Accuracy of RTI auto messaging needs to improve - CIOT

The Chartered Institute of Taxation (CIOT) says HMRC still has work to do in ensuring the accuracy of automated generic notification messages to employers used within the real time information (RTI) system of reporting PAYE details to the tax department

‘An improvement in the accuracy of the late filing, non-filing and late payment messages would not only reduce the volume of penalties issued in error by HMRC, but would also reduce the number of appeals that inevitably result from this,’ chairman of the CIOT employment taxes sub-committee, Colin Ben-Nathan said.

The institute said the announcement by HMRC - to issue penalties to employers with 50 or more staff who file their PAYE returns late from the 6th October of this year, and from 6th March 2015 for the remainder of employers - is a positive step in helping small business transition into the new PAYE reporting method.

However it added that ‘wrinkles remain in the overall system.

‘Smaller employers, in particular, need a longer period of time to adjust to PAYE and other administrative changes because they have very limited resources which are primary geared to servicing their clients and customers. It is encouraging to see that the government have recognised this point in the present circumstances.

‘Additionally, we consider that HMRC needs to do more to make speedier use of the RTI data it is receiving to improve the accuracy of PAYE deductions for employees and pensioners,’ Ben-Nathan said.

Penny Sukhraj |Content editor, Accountancy - (up to 2016)

Penny Sukhraj, former content editor and writer for Accountancy and Accountancy Live, responsible for commissioning and editing news...

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