TT198: Real Time Headache
The introduction of Real Time Information (RTI) was probably the biggest change in the PAYE system since the introduction of the system itself in 1944.
For those who are not familiar with RTI, the new system requires all UK employers to notify HMRC electronically of their liability to PAYE on or before they make payment to their employees by the on-line filing of ‘Full Payment Submissions’ (FPS) and in some cases Employer Payment Summary (EPS).
There is no longer a requirement to prepare the end of year forms P35 and P14 under RTI but there is an RTI equivalent declaration that needs to be submitted with the final FPS for the tax year which should be made by 5 April. The declaration has the same questions as the P35 used to have!
When sending the last FPS or EPS for the tax year, you will need to indicate this is the final submission for the year and will be asked to complete the ‘P35 like’ declaration described above.
If you have already submitted the last FPS/EPS for the tax year but you have not indicated this is the last submission, fear not, all is not lost! You can correct the situation by submitting an EPS by 19th April and indicating this is your final submission for the tax year. However a word of warning, you must submit the last EPS on or before the 19th April otherwise HMRC’s system will block the submission of the EPS and you will have to submit an earlier year update (EYU) by 19 May to avoid a possible penalty.
If you require any further information please contact your Barnes Roffe partner.Talk to Barnes Roffe today