RTI Has Fundamental Problems

Oh dear, despite HMRC insisting that everything in the garden (wrt RTI) is rosy not everyone agrees.

Step forward the ICAEW, which has stated that RTI is "badly designed" with "fundamental problems".

Peter Bickley of the ICAEW is quoted by This is Money:

"It is not going as smoothly as the Revenue would have you believe. It has been badly designed from the beginning and there are fundamental problems.

There are problems of duplicate entries, items not being processed, information which employers should be able to see on their screen not showing, employees put on the wrong tax code, and the Revenue’s debt management and banking arm pursuing underpayments based on incorrect information. This is causing a lot of anxiety.

The Revenue is saying “you have filed late” or “you have not filed something” in cases where the employer has filed late because they are allowed to under relaxations, or filed early and it was not recorded."

As an aside, I am rather amused to see that he is still calling HMRC "the Revenue". However, the point he makes is valid.

The ICAEW met with HMRC's Ruth Owen, who is in charge of RTI, to urge HMRC to fix its IT problems and relax its efforts to chase underpayments.

Bickley said:

"We suggested they adjust their tone and make sure they are not sticking the boot in. A lot of employers’ time is being wasted and costs are running up. We are pressing Ministers for the Revenue to be given funding to make RTI work."

The ICAEW is hosting comments from members about RTI on a blog post "RTI – are you swimming or sinking?"

So folks, how's it going for you then?

Tax does have to be taxing.

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