This page lists some of the questions raised following the publication of the RTI technical pack. For ease of reference 'box numbers' have been used to formulate these responses as software developers are familiar with them, but it is not intended that these will remain a permanent reference point.
The answers provided reflect HM Revenue & Customs (HMRC) current thinking and further information will be published as RTI is developed.
On this page:
Q1.1: How do I deliver the interim solution if I don't have access to employee bank details?
A: A key feature of RTI is to link RTI data and payment information together where employees are paid by direct Bacs. This will reduce errors and improve accuracy, particularly when Universal Credits is introduced. Employers need to use employee bank details to generate the hash cross reference. HMRC appreciate that this may result in a change to business processes for some employers.
Q1.2: I only produce the payroll - the employer produces the standard 18 file - how will RTI affect us?
A: Employers will be required to include the hash cross references in RTI submissions where employees are paid by direct Bacs. This means the payroll producer will need details of the entries to be included in specified fields of the standard 18 payment instruction.
Q1.3: Will the interim solution accept multiple submissions for different employer PAYE scheme references?
A: Multiple submissions will not be accepted through the Government Gateway from April 2012, but HMRC is investigating whether it will be possible to facilitate multiple submissions in a later release. However they will be accepted through EDI as at present.
Q1.4: Why must we submit the hash with RTI data where earnings are paid by direct Bacs?
A: The hash provides HMRC with the facility to validate RTI data by cross referencing with hashes generated by VocaLink once the Bacs payment has been made.
Q1.5: An employee has his net pay paid via Direct Bacs into two accounts. How should I report this for the hash to work?
A: The matching process will take place against the largest value payment. The Bacs payment instruction for the largest amount should contain the 4 character string in Field 7, and the data used for this payment should be used to construct the 64 character hash that is reported on the FPS.
Consider this example to see how the FPS should be completed: Suppose the employee is paid £850; £600 into account A and £250 into account B.
Step one is to total all the payments other than the largest and add this to any figure already in box 58B.
Box 59 less box 58B plus Box 58A should equal the largest payment.
So the total payment, before it is proportioned between recipient accounts, is the figure in box 59, box 58B reflects the value of the payment to account B. HMRC will use the amount 59 - 58B - 60 + 58A i.e. £600 (where 60 and 58A are 0) to match against the largest payment.
Q1.6: What should an employer do where a payment covers more than one tax year?
A: If the payment consists of two or more net amounts for two or more tax years, then the amounts for all but the latest tax year should be totalled and added to any amounts in box 58A (the net amount for previous years are not subject to tax or NIC in the current year).
Q1.7: Will HMRC be providing the code for the hashing algorithm?
A: No. The hash should be generated using the Secure Hash Algorithm SHA-256, details of which are published by the National Institute of Standards and Technology (NIST).
As there are many implementations of SHA-256 available across multiple technologies HMRC cannot recommend which one to use, but you should be looking at using proven and reliable sources. In addition there are also many documents publicly available providing test vectors with the expected results for proving SHA-256.
The data used to generate the hash should be ASCII characters.
Q1.8: Will VocaLink process the hash immediately they receive the file from the employer, or will they process it at the payment date (which could be in the future)?
A: VocaLink will process the hashes once payment has been made.
Q1.9: Could an employer recall a Bacs transfer?
Q1.10: Is the “/” in field 7 of the Std 18 file going to be part of the PAYE regulations?
A: The appropriate field 7 entry will be required where an employer sends a payment instruction to Bacs that relates to a relevant payment, within the meaning given by the PAYE Regulations.
Please note that the solidus has a hex value of “2F” under the ASCII character codes.
Q1.11: An employee receives part of his net pay via Direct Bacs, and part of it by another means, eg cheque. How should I report this for the hash to work?
A: The matching process will take place against the Bacs payment amount. The Bacs payment instruction should contain the 4 character string in Field 7, and the data used for this payment should be used to construct the 64 character hash that is reported on the FPS.
Consider this example to see how the FPS should be completed: Suppose the employee is paid £850, of which £600 in a cheque and £250 into account B via Bacs.
Step one is to total all the payments being paid other than by Bacs and this should be added to any figure already in box 58B.
Box 59 less box 58B plus Box 58A should equal the Bacs payment.
So the total payment, before it is proportioned between recipient accounts is the figure in box 59, box 58B includes the value of the payment by cheque. HMRC will use the amount 59 - 58B - 60 + 58A ie £250 (where 60 and 58A are 0) to match against the largest payment.
Q1.12: How will the software be able to determine whether to include the hash if it doesn't know if the employer is paying by Bacs?
A: The employer will need to be able to indicate this in the software.
Q1.13: Will HMRC be publishing what happens where the hash does not match the one created by Vocalink?
A: It will feed into HMRC and DWP risk assessment procedures used to target education and compliance activities.
Q1.14: What is the submission 'window' between making a Bacs payment and making an RTI submission?
A: RTI submissions should be made on or before the time of payment. Where the payment is made by Bacs, the payment will be for a given settlement date and the RTI submission should be submitted by that date.
Q1.15: Can employers still pay HMRC on a quarterly basis?
A: Yes, if they meet the relevant criteria. But if your payroll is run weekly then FPSs will be required on a weekly basis. The fact that an employer is a 'quarterly payer' does not change the requirement to send in an FPS when payments are made.
Q1.16 How should I report payments made to an employee with multiple employments across two or more PAYE schemes, when they are paid with a single payment? For example, an employee has job A and job B in scheme 1, and job C in scheme 2, and is paid for all three jobs together in one Bacs payment.
A: At the point the employer aggregates the results of the calculation into a single payment he must attach the hash relating to the single payment to each line of RTI which are then returned separately. The RTI data for jobs A and B in scheme 1 are aggregated so one box
59 is completed covering jobs A and B. The details relating to job C are returned separately under scheme 2. The same hash is returned with each piece of RTI.
Aggregation of RTI data must only be done within each PAYE reference
Q2.1: Can the internet channel handle the increased volume?
A: Yes, HMRC is confident that the Gateway will be able to accommodate RTI volumes.
Q2.2: How will HMRC know which software is used?
A: Most software providers already indicate the product used for submission of data. This will be a requirement for RTI.
Q2.3: How will HMRC know if data is incorrect?
A: HMRC will be undertaking a series of compliance checks, particularly identifying trends and inconsistencies. In addition, HMRC will be analysing employer data - such as which software has been used - and will be introducing an employer dashboard to work with employers to improve data quality.
Q2.4: Will there be a Test-in-live (TIL) function for RTI?
A: Yes for each message class.
Q2.5: What is the lead-in time for introducing the strategic solution?
A: The timetable has not been finalised. HMRC will publish plans in due course.
Q2.6: If the benefits of using the Bacs strategic solution are resilience and security, why are HMRC continuing to support the Gateway and EDI channels?
A: The feedback from the software industry was that reuse of the EDI channel would facilitate the introduction of RTI and HMRC have listened to that. Longer term, HMRC's preference remains for a single integrated process.
Q2.7: Is it possible to split a large submission into smaller file sizes to improve submission times and reduce the risk of exceeding the Government Gateway size limit?
A: Yes, it is possible to partition a large submission into smaller file sizes for the purposes of online filing.
Q3.1: Which employers need to make an EAS submission? When and how will they be informed of this?
A: Employers will receive an invitation to join RTI which will advise the date upon which the employer needs to submit an EAS or their First FPS. The employer will need to correctly determine, from the information supplied on the invitation, whether an EAS or a First FPS is required for the purposes of Payroll Alignment.
During 2012/13 the first RTI submission (irrespective of whether that is EAS or First FPS) made for a PAYE scheme will need to include all CY employees on that scheme (including employees who have left at the point the first submission is sent) to facilitate Alignment. Part EAS submissions cannot be accommodated until 2013/14 (see Q 3.3)
Q3.2: Can an employer submit an EAS irrespective of size and will HMRC accommodate this?
A: An EAS will be requested from employers in the following circumstances:
In most other cases HMRC will use the data provided in the employer's First FPS to undertake Employer Alignment. However, employers who do not fall within the above categories, where an EAS will be required, may still send an EAS for the purposes of alignment if they prefer to do so.
Q3.3: What is the definition of a 'split scheme' for the pilot? Can multiple/split EAS submissions be made from April 2012?
A: A split PAYE Scheme for the purposes of employer alignment is the situation where it is impossible or impracticable for an employer to consolidate the full PAYE Scheme into a single submission for alignment. Acceptable scenarios include:
Please also note that that the data control items required for split scheme management will not be added into the EAS form until April 2013, so part scheme EAS submissions cannot be accepted for alignment before then.
Q3.4: Will employees not on the EAS, or the First FPS where no EAS is required, be 'ceased'?
A: Yes. That is why it is essential that the EAS and First FPS where no EAS is required, contains every current year (CY) employee - even those that have left or have not yet received a payment in the relevant period.
Note: Year To Date (YTD) figures for employees who have left will also be needed in a First FPS, even where an EAS has been sent, to enable their pay and deductions records to be updated on HMRC's NPS system.
Q3.5: Why is an EAS needed? Could the employer send in a full FPS instead?
A: An EAS is required for large schemes to allow HMRC to separate the alignment processing from the RTI processing, due to the higher volume of employment records to be aligned and the greater risk of alignment issues arising.
An EAS is also required for split schemes so that HMRC can present the whole consolidated scheme for alignment. It should be noted, however, that the data control items required for split scheme management will not be added into the EAS form until April 2013, so part EAS submissions cannot be accepted until April 2013.
Q3.6: Can an 'uninvited' employer make an EAS submission? If not, what is the reason for this?
A: Any RTI submissions sent by 'uninvited' employers will be rejected, because the system will not recognise their scheme reference. The invitation will be an indication to the employer that they are now able to join RTI and will advise (i) on-boarding date and (ii) scenarios for EAS.
The criteria for EAS submissions will be stated clearly on the invitation. Employers that meet these criteria must send an EAS for Alignment. However, as explained above, employers who do not meet those criteria may still use an EAS for alignment if they prefer to do so.
Q3.7: How will HMRC know when all EAS submissions have been received in order to start payroll alignment?
A: After April 2013, the EAS Schema will be amended to allow the employer to advise how many parts will be sent and to uniquely identify each part. These new fields should only be used by employers with circumstances that allow them to submit 'Split Schemes' (see Q3.3).
Q3.8: If an employer submits a further EAS containing identical employees; changes to submitted employees; additional employees etc, will these impact the quality of the alignment process?
A: Only the first EAS submission from an employer will be processed. There will be no facility for an employer to make amendments to an EAS that they have sent. Therefore it is essential that the information on the EAS is complete and correct. If any employees are not included on an EAS, HMRC will consider them to have left, and those employments will be ceased.
Q3.9: How soon after the EAS will the employer be permitted to send in their first RTI submission?
A: Once the EAS has been successfully submitted, the employer is considered to have joined RTI. Therefore they can start sending FPS submissions immediately.
In some circumstances, the EAS may subsequently fail checks for data quality. If it does, HMRC will contact the employer and ask them to check the data and resend an EAS - correct at the time of the new submission. Any FPSs that have been sent in the intervening period will not need to be resent. HMRC will explain when they contact the employer, if any other data is needed.
Q3.10: Who should be included in the first FPS?
(a) If an EAS will not be submitted
The first FPS should include details of all individuals employed or receiving income subject to PAYE, including those paid below the National Insurance Lower Earnings Limit (LEL), on one single FPS. The first FPS should be submitted on or before the first payment date that you join RTI. This should include details of employees that:
(b) If an EAS has been submitted
The first FPS should include details of any individuals paid income subject to PAYE, including those paid below the National Insurance Lower Earnings Limit (LEL). This should include employees that:
Employers can submit an FPS for each 'part' of their payroll, for example, one first FPS for weekly pay, one for monthly and a separate FPS for leavers, if they prefer to do so.
Q3.11: What is included in the mandatory fields (pay date, frequency, hours worked etc) for employees within the First FPS who are not receiving a payment during the period?
|Data item||Data entry requirement|
|Forename and/or initials||Correct forename and/or initials|
|Address (if NINO not known)||Correct address|
|Date of birth||Correct DOB|
|Data items||Data requirement|
|Taxable pay to date in this employment||YTD figure (or 0.00 if not yet received a payment in tax year)|
|Total tax to date in this employment||YTD figure (or 0.00 if not yet received a payment in tax year)|
|Value of tax deducted or refunded from this payment||0.00|
|Total of employer NI contributions in this period||0.00|
|Total of employer NI contributions year to date||YTD figure (or 0.00 if not yet received a payment in tax year)|
|Employees contributions due on all earnings in this pay period||0.00|
|Employees contributions due on all earnings year to date||YTD figure (or 0.00 if not yet received a payment in tax year)|
|Data items||Data requirement|
|Pay frequency||W1, W2, W4, M1, IR, etc - this should be whichever applies to the individual at the time the FPS is submitted|
|Payment date||Where there is a YTD figure use the date the latest payment included in YTD was made. If YTD is 0.00 use 6/4 or start date, whichever is most recent.|
|Tax week number or Tax month number||Where there is a YTD figure use the tax week or tax month the latest payment included in YTD was made. If YTD is 0.00 use the tax week or tax month to which this First FPS relates|
|Number of earnings period(s) covered by payment||1|
|Number of normal hours worked||Whichever of the four bandings is most appropriate to the individual|
|Tax code operated||Tax code held by employer|
Q3.12: Will an employer need to do a Works Number Update (WNU) run before an EAS or will the EAS amend the works number?
A: No. Any Payroll ID supplied on the EAS will overwrite any works number held by HMRC. After the EAS, the FPS has data items to allow the employer to indicate that the Payroll ID has changed.
Q3.13: The employer may not be able to action the results of the EAS immediately. How long after making the EAS do they have before migrating to RTI?
A: Once the employer has sent the EAS they are considered to have joined RTI and should start sending RTI submissions as they make payments.
Existing movements processing (P45/P46) should be ceased as soon as the EAS/First FPS has been sent.
Q3.14: What is the electronic output resulting from the EAS submission(s)? Are there any new electronic messages required?
A: In Session Messages for the EAS will be as defined in the tech pack. There are no 'out of session' notifications that have been defined specifically for the EAS. Some NINO notifications or coding notices may be issued to the employer as a result of the Alignment.
Q3.15: Will the free HMRC 'PAYE Desktop Viewer' (PDV) software support retrieval of any notifications generated from the EAS procedures, regardless of employer size?
Q3.16: Will a new employer need to do an EAS?
Q3.17: Can employers in the pilot make an EAS before April 2012?
A: No, the IT functionality will not be available to make the submission before April 2012.
Q3.18: Can HMRC provide a timetable of when employers will be required to make an EAS prior to joining to RTI?
A: The full migration timetable has not been finalised. HMRC will write to pilot employers to let them know when to make their EAS, or First FPS, once the timetable is finalised.
Q3.19: Are there any changes to the EAS process planned from April 2013?
A: Yes. New data items will be included on the EAS Schema and new message responses will be introduced for the EAS. Further guidance will be provided around these changes.
Q3.20: Is there a 'paper' option for responses generated from the EAS procedures?
A: There are no 'out of session' notifications that have been defined specifically for the EAS. Some NINO notifications or coding notices may be issued to the employer as a result of the Alignment. The paper option for coding notices continues, NINO notifications will be sent via the channel used for the submission.
Q4.1: Data items 36 and 37 refer to State Pension details?
A: You can ignore these data items. They will only be used for submissions being made by DWP.
Q4.2: Will the P45 be discontinued when RTI is introduced?
Under RTI, employers will continue to give P45s to the employees
when they leave their employment, to take to their next employer.
However P45s should not be sent to HMRC. Starter and leaver
information will be reported to HMRC by employers as part of
their normal RTI submissions.
Employers will be required to ask all new employees a series of questions, similar to the P46 questions, whether or not the employee has a P45 from their previous job, to establish the correct tax code to apply. Where the employee does supply a P45, the employer should use the tax code and previous pay and tax details from the P45 to calculate the tax to be deducted. The code from the P46 should be included on the FPS, with the answers to the P46 questions, but the pay and tax from the previous employer should not be included. (Updated 2 May 2012)
Q4.3: Will the P46(Expat) be discontinued when RTI is introduced?
A: Yes, for employers operating PAYE under RTI.
Q4.4: Will the employer still have to complete a P11? Will the P11 be in the new regulations? Will the P11 be redesigned for RTI?
A: The P11 is not covered by PAYE Regulations. The current PAYE Regulations define a 'deduction working sheet' as any form of record, in which are kept the matters required in connection with an employee's relevant payments and tax. We don’t expect employers operating PAYE in real time to complete paper P11s. The reporting of PAYE information in real time will become an integral part of an employer’s payroll process and the software used will calculate the tax, National Insurance contributions, Student Loan repayments, etc, due and send the information required to HMRC.
Q4.5: What is an 'irregular payment'? Will an amendment be classed as an irregular payment?
A: Irregular payments are those made to employees who have an irregular working pattern. HMRC will check if employees have not been paid for a specific period of time and will treat them as having left that employment. To avoid that happening for employees who do not get paid regularly, HMRC will ask employers to use the irregular payment indicator. An amendment will not be classed as an irregular payment.
Q4.6: What will happen if an amendment is processed before the original?
A: In-year amendments should be made by adjusting the Year to Date figures in the next RTI submission. HMRC will process RTI submissions based on date of payment to the employee and date of receipt by HMRC, ie where more than one RTI submission is received for a particular date of payment, HMRC will assume that the last submission received represents the most up to date figures.
Q4.7: Will the entire submission be rejected if one file fails the validation?
A: The submission will be rejected at scheme level if there are one or more validation errors
Q4.8: Can an employer still choose to receive coding notices by paper as at present?
A: Yes, there are no immediate changes to coding notice outputs. Employers can still choose how they receive coding notices.
Q4.9: What should an employer do if their final FPS is incorrect? How do they make amendments?
A: Guidance on how to make amendments to the final FPS for a tax year will be given in due course.
Q4.10: Can new starter details be sent to HMRC without any payment details?
A: Under RTI the details of a new starter should only be submitted to HMRC at the time of the first payment. You can set up the employee on the payroll ahead of this but there is no need for a separate early notification of the new employment. There is no longer a separate process to notify the new employment and therefore no need to send in new starter details other than with the first payment.
Q4.11: Should the employer use the starter details on a P45 for the RTI submission?
A: The employer should use all the information on a P45 on their payroll records to ensure the correct tax deductions. The pay and tax details from the P45 should not be entered on the RTI submission, but if the code is operated from the P45 then this should be included in the RTI. (Updated 2 May 2012)
Q4.12: Can developers have some guidance on the use of the Aggregated Earnings indicator? When should it be supplied?
A: It should be supplied in the following circumstances when earnings from all jobs have been aggregated to assess National Insurance contributions:
Booklet CWG2 the 'Further Guide to PAYE and NICs', has guidance on aggregating earnings from more than one job in Chapter 3 National Insurance only procedures.
Q4.13: Can developers have some guidance on the completion of the 'Number of hours worked' data item (number 54) especially around zero hours contracts, university lecturers and pensioners.
A: You should use whichever of the four bandings is most appropriate to the individual. Enter one of the following, according to the number of hours you expect them to normally work in a week;
If your employee is on paid leave, for example annual leave or sick leave, please report the normal hours worked. If you consider a, b or c are not appropriate then enter d.
Q4.14: Will form P38A be needed under RTI?
A: No, one of the main features of RTI is for employers to send details on all payments made through the payroll irrespective of the amount of pay. So an end of year return (P35 and P14) or P38A supplementary return will not be needed as employers will tell HMRC about all payments made during the tax year each time their payroll is run.
Q4.15: Will an employee's new name or address on a RTI submission update the HMRC records?
A: No. It is the responsibility of the individual employee to notify HMRC of change of name, address, etc.
Q4.16: Will an employer have to make a RTI submission even if they haven't paid anyone?
A: If no payments are made within a pay period, an EPS should be submitted to indicate 'No payment due as no employees or subcontractors paid in this pay period' - Data Item 87Ba.
Q4.17: Currently where an item has failed a rule, such as a missing gender or date of birth, it requires the data to be fixed and submission to be regenerated before it would be accepted. Will this be happening with the RTI file?
A: Validation rules are clearly laid out in the technical pack. Submissions that don't meet the validation rules will be rejected, as is the case for all online filing.
Q4.18: Where it states 'Directors NIC', what is meant by Table and Percentage? Should it be annual or alternative?
A: Yes, it should be annual or alternative. HMRC is investigating whether it will be possible to update this wording at the next release.
Q4.19: Where it states 'WkMonthNoAPpt' - what information should be entered?
A: It should be the tax week, not tax month, which the director was appointed. HMRC is investigating whether it will be possible to update this wording at the next release.
Q4.20: Where it states 'Hours worked' why are the enumerated values 'Up to 15.99' etc.?
A: The four different bands need to be categorised to help the employer enter 'Up to 15.99', '16-29.99', '30 hrs or more' or 'Other'.
Q4.21: Data item 54 asks about Normal Hours Worked. What details should be entered here when we do not have information relating to hours worked, for example salary paid staff?
A: The hours worked should be based on the number of hours a person expects to normally work in a week. The word 'normally' should be given its ordinary everyday meaning of regularly, usually, typically.
Q4.22: What does the entry 'PayAfterStatDedns' mean?
A: It is the net pay after deductions for tax, National Insurance and Student Loans (but excluding payments entered at 'Value of payments not subject to tax or NICs in pay period' and deductions entered at 'Value of deductions from net pay in pay period'). Business scenarios 7 and 8 refer.
Q4.23: Data item 58A asks for the value of payments not subject to tax or NICs in pay period. What type of information does HMRC want included?
A: These would be items neither subject to tax nor NICs, for example, household expenses when working at home - up to £3 per week - and certain travel and subsistence costs. But a Christmas bonus would be liable to tax and NICs and would not be shown here.
Q4.24: Data item 58B asks for the value of deductions from net pay in pay period. On our pensioner payroll system a typical example could be a post-tax deduction relating to BUPA or a subscription of some sort. Is this the type of information you are looking to be included in this field?
A: Yes. Another example would be Trade Union subscriptions.
Q4.25: Page 66 states an irregular employment indicator is required; definition is required for this. It shows where not monthly, weekly etc so is it referring to ad-hoc payments, such as casuals?
A: Yes, for example, agency workers where you expect them to work for you again in the future.
Q4.26: Is the National Insurance number verification request part of the proposed new National Insurance number verification tool for employers or a validation test that just ensures the format of the National Insurance number is correct?
A: This is the proposed new National Insurance number verification tool for employers.
Q4.27 Is there a requirement for the XML file to be validated against the XSD definition (as currently happens with the in-year and end of year submissions)?
Q4.28: How will messages be sent by HMRC to employers?
A: HMRC will continue to use the Data Provisioning Service (DPS) and EDI outbound message services.
Q4.29: National Insurance number validation - the response to the National Insurance number request goes back through the DPS system. Will HMRC still be providing the PDV for these responses?
Q4.30: Please can we see a worked example to help us understand how we should report a situation involving differing tax and NICs treatments?
|Basic pay||£2,000||Payment to employee|
|Medical Insurance||£225||Payment to insurer by employer, payrolled, Class 1A, no class 1|
|Home allowance||£13||£4 per week for regular home working no tax or NI|
|Pension contribution||£200||Paid under net pay arrangements|
|Child Care Vouchers||£243||Under the limit, no tax or NI, paid to childcare provider|
|Share incentive payment||£100||Relieved from tax and NI by share scheme legislative|
|Trade union subscriptions||£20||Taken after tax and NI have been calculated|
No tax allowances, no NI bands
Calculations rounded down in taxpayer’s favour
|Data item||Amounts||Amount to be paid|
|Gross cash pay||£2,013||£2,013|
|Adjusted gross pay||£1,913||£1,913|
|Less Home allowance||-£13|
|Plus Retail vouchers||+£95|
|Pay for Class 1 NI||£1,995|
|Less Pension contributions||-£200||£1,713|
|Plus Private Medical Insurance||+£225|
|Payment after statutory deductions||£1,377||£1,070|
|Adjust for non-cash and non-taxable/NICable items||-£307||£1,070|
|Trade Union Subs||-£20|
|Payment to be made||£1,050||£1,050|
|Gross cash pay||£2,013|
|Trade Union Subs||£20|
|Payment to be made||£1,050|
|Box 41A||+£2020 increment taxable pay to date inc payrolled BiK|
|Box 41B||+£404 increment tax paid to date|
|Box 58||£2,020 taxable pay this payment|
|Box 58A||£13 (Home allowance £13) payment subject to neither tax nor class 1 NI|
|Box 58B||£20 - trade union subscriptions|
|Box 59||£1,377 Amount after statutory deductions|
|Box 60||£320 (£225 PMI, £95 retail vouchers) - payrolled benefits|
|Box 60A||£95 (retail vouchers) - benefits subject to class 1|
|Box 60B||£225 (PMI) - payrolled benefits not subject to class 1|
|Box 61||£200 - pension under net pay arrangements|
|Box 68||£404 (tax on payment)|
|Box 79B||£1,995 (gross pay for class 1 NI)|
|Boxes 82 - 84||£1,995 allocated as appropriate to increment values|
|Box 86B||£239 (Class 1 NI)|
Bank payment = 59 + 58A - 58B - 60 (£1,377 + £13 - £20 - £320 = £1,050)
59 + 86B + 68 = taxable pay (£1,377 + £239 + £404 = £2,020)
68 correctly calculated given: 41A, 41B, 44, 45, 55, 56, 58
Taxable pay + Box 61 - Box 60B = Pay for purpose of class 1 NIC
86B correctly calculated given 48, 49, 79, 82-84B, 86Ba
67 correctly calculated given 27, 41 and pay for purpose of class 1 NIC
Share Incentive Payment, a deduction from gross pay and subject to neither tax nor NIC doesn't feature neither do the child care vouchers which are within limits
Q5.1: What feedback will there be from the pilot?
A: HMRC will be providing regular feedback on progress both to pilot members and, where appropriate, more generally.
Q5.2: Is the National Insurance number verification request part of the pilot?
Q5.3: When will it be decided which employers should join RTI in April 2013 as previous information suggests small and medium first, with large to follow up until October 2013?
A: HMRC currently envisage that all employers that haven't joined the RTI system during 2012-13 will be required to do so from April 2013. All employers will be notified about their obligations in due course.