HMRC have admitted that there are problems with the flagship RTI project, specifically there are tax reconciliation errors between what HMRC say is due and what some PAYE schemes say is due.
I thought RTI was meant to eliminate reconciliation errors?
"We have received feedback that some PAYE schemes have experienced difficulties in reconciling the difference between:I would be grateful to hear about the progress that the corrective action team making.
We have set up a dedicated team to identify the cause of these discrepancies.
- the tax we say is due, and
- the tax they think is due
The team is working with a number of PAYE schemes to work through their examples to examine what is causing these discrepancies, and then to resolve them.
This will also enable us to:
Each time we identify a root cause we will update our guidance, where appropriate, as soon as possible. We have already updated the View your current PAYE payment and submission position section of our guidance for employers using HMRC's PAYE Online, to make it clearer when we update this information, and what information will be available at any given."
- understand the issue in greater depth, and
- take the steps necessary to prevent them arising in the first place
Tax does have to be taxing.
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