Yet more RTI clarificatio

Posted on 25 Mar 2020
Share Blog Post

A clarification on completing Employer Alignment Submissions and Full Payment Submissions has been issued by HMRC say Northampton chartered accountants Harris & Co.

It says issues affecting an employee’s tax code arise where an employer:

has submitted only part of their employee payroll on their Employer Alignment Submission (EAS) and subsequently includes the remainder of their employees on a subsequent Full Payment Submission (FPS), or

submits their EAS in parts, but does not indicate on the first EAS that they will be submitting in parts, HMRC treats the first part as the full alignment submission, or

uses their first FPS to align (rather than an EAS) and does not include all employments on that first FPS

Once alignment is complete, any live employments not included by the employer will be ceased with a date of leaving of 5 April 2013.

HMRC have identified that when an employer sends a subsequent FPS, HMRC will create a new employment. That new employment record will not contain any benefits from the individual employee"s tax code. Therefore, the tax code that is issued for the new employment will be incorrect.

Employers should not operate the incorrect codes and should continue to use the previous code in such instances.

If an employer or an employee receives a tax code where the benefits have been removed, they should get in touch with HMRC to get the benefits re-instated and the code corrected.

More details are available from HMRC.

View more blog posts

SME lending increases
Posted on 19 Jun 2024
SME lending increases
read more
More tax awaits us
Posted on 12 Jun 2024
More tax awaits us
read more
High tax Britain
Posted on 05 Jun 2024
High tax Britain
read more
Biggest tax freeze in history
Posted on 29 May 2024
Biggest tax freeze in history
read more
Back To Top
01604 660661