Nearly two years after mass implementation, RTI systems are still causing employers and us (payroll agents) problems:

  • Duplicated records continue to affect roughly 10% of employers within the system, with up to 75,000 entries inflating liabilities for employers’ contributions and often triggering actions collection by agents working on behalf of HMRC’s Debt Management and Banking (DMB) team.
  • Late filing notices continue to be issued, even though the adviser has electronic acknowledgements from HMRC
  • Reconciliation problems
  • CLP: Tax codes and YE information by HMRC which doesn’t agree with the actual payroll deductions. Car benefits missed odd months payments to HMRC somewhere in the ether.
  • Scheme closures – will this measure unintentionally affect annual schemes, and will HMRC notify the scheme operators beforehand?

At that time HMRC’s director of personal tax Ruth Owen, told AccountingWeb, RTI was working well: “Our most recent figures show that over 96.9% of PAYE schemes are successfully reporting RTI which represents 99.7% of the PAYE population and 70% say that RTI is easy.”

Automated penalties themselves are a sure way to infuriate us, accountants and  payroll agents. The roll-back of this regime is widely welcomed, but each time HMRC announces another change of stance on the automated penalties, the more likely it seems that all is not well with its RTI processing systems.

Still uncertain about the underlying reasons and explanations surrounding the new penalty announcements? Feel free to contact us on

Have a lovely weekend