Latest update covers: signing up for employer updates, penalties for late paid PAYE, and telephone problems
HMRC has issued its latest informal update for agents and employers – the full text is set out below.
As regular readers will know, HMRC is sending these updates on a weekly basis to representative bodies such as the Tax Faculty, so that we can pass the information on to our members.
The latest update covers:
- Employer mailings – employers are strongly recommended to sign up with HMRC to get email alerts when new information comes out, eg a new issue of the Employer Bulletin (which is no longer being posted out in hard copy).
- Penalties for late paid PAYE – these will apply to all employers from April 2010, although HMRC will not assess the penalties until after the tax year has ended. The update explains when HMRC will charge penalties and how to avoid them.
- Telephoning HMRC about NPS (the new PAYE computer system) – the lines have been busy and there have been problems in getting through to HMRC – it is doing its best to improve things.
The Tax Faculty reminds agents that they may prefer to use the Agent Dedicated Line for PAYE queries.
The full text of HMRC’s 23 July 2010 informal update is as follows:
Employer Mailings and Email Alerts
“Although we have withdrawn the paper version of the [Employer] Bulletin, we want to make sure that employers don’t miss out on receiving important employer information. We have therefore introduced a facility where you can register to receive email alerts letting you know when future editions of the Bulletin and the downloadable version of the Employer CD-ROM are available. Not only this but, if you sign up, you will also receive alerts about other important information from HMRC.
“We strongly recommend that you register; receiving alerts by email will ensure you get important information to help you run your payroll. Registering is straightforward, provided you know your Employer PAYE reference number. As well as that, we’ll need the following pieces of information:
· Employer name
· Email address
· Telephone number and contact name.
“Doing things this way means we can reduce the number of paper packs we send out, bring down costs and, like everyone else, try our best to reduce our carbon footprint. There was information about email alerts in issue 35 of the Bulletin and, clearly, they are going to be one of our major communication channels in future, so please pass on this news to employer colleagues to register as soon as possible.
Penalties for late payment of PAYE
“The payments to which these penalties will apply are those you’re required to send us by the 19th of each month – or the 22nd if you pay electronically. They will apply to all employers and contractors. Prior to 6 April [2010], there was a late payment surcharge – called the ‘Mandatory Electronic Payment’ surcharge – which applied only to large employers, those with 250 or more employees. From April this year, the new penalties apply to employers of all sizes.
“The calculation and assessment of any late payment penalties due will be carried out only once the tax year has ended; that way it is possible to review the position over 12 months and get a better picture of an employer’s behaviour over the tax year. As to the penalties themselves, their size will depend upon how many payments are late – and by how long. Obviously the more payments missed, the bigger the penalty will be.
When we will charge penalties
“We will not be in a position to calculate any penalties due until we review an employer’s ‘payment performance’ once the tax year has ended. At that time, we may, if appropriate, need to consider charging a penalty. Prior to that, we will often write to employers on the first occasion that they fail to pay on time. That letter will explain that payment is late and, should it be late again, advise that the employer could be charged a penalty. However, we do not expect to write to every employer each time a payment is late. More guidance about these new penalties can be found at the following web address:
www.hmrc.gov.uk/paye/problems-inspections/late-payments.htm
How to avoid them
“The reality is that we don’t want to impose penalties. The vast majority of businesses pay on time, but these measures are designed to act as a deterrent for those who don’t or won’t comply with their obligations. That’s the approach you tell us you want us to take. Our intention is to try and create a level playing field so that those employers who consistently pay late do not gain a commercial advantage over those who play by the rules. Over and above that, we will not seek to penalise anyone who has a reasonable excuse for non/late payment. In practical terms, it will help employers to avoid penalties by paying electronically; it’s safer, quicker and more efficient. The Businesslink website (www.businesslink.gov.uk) provides tools to help you pay on time when payment is due. For those employers who may have difficulty in making payment, it’s best to speak as early as possible to our Business Payment Support Service before the payment in question becomes due.
NPS and customer contact
“As you know, the new PAYE system (NPS) creates a single record for each customer allowing us, for the first time, to link together multiple employments and pensions. All PAYE callers are now routed to one pool of advisers across our network of contact centres, providing a better service as calls will always be routed to the next available adviser wherever they are located; matching available resources to customer demand.
“Recently, our phone lines have been busier than usual. We understand that this will have been frustrating for our customers including employers and pension providers whose employees and pension annuitants often call them first, or instead of, HMRC. We are doing all we can to maintain good customer service during this busy time. We have been working on a range of other measures that will improve the effectiveness of our contact centres such as developing automated messages to provide answers to many customer queries without the need to speak to an adviser, reducing the need for customers to contact us by improving our processes and the forms we issue and improving our website to make it easier for customers to find the answers to general enquiries.”