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Payroll software and HMRC PAYE RTI differences

  • Member
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  • 29 posts
  • # 113176

Hi, has anyone experienced any issues with HMRC reporting different numbers for PAYE compared with the payroll software number.  One of my clients used Moneysoft Payroll Manager and is compliant with his RTI however HMRC more often than not show he owes a different amount, they pay weekly and HMRC advise that there is probably a timing issue but the differences never seem to resolve themselves, in fact they have caused a lot of expense trying to sort the issues with HMRC.  Any suggestions would be gratefully received.

  • Associate
  • Practice Licence
  • 77 posts
  • # 113180

Hi,

I've never been at all confident in our Hmrc allocates payments despite payment reference numbers being used to confirm the period being paid. However, although I have clients running weekly payroll, they all pay monthly, based on the tax periods in payroll manager. Never had a problem with these clients. Because of the ability to use just monthly reference numbers, I am not sure Hmrc are geared up to weekly payments.

For another client, that I did not do the payroll for, just the bookkeeping, I have had to get them to request records from Hmrc on payments received and how they've been allocated in order to reconcile and then records were corrected. For another, it took a phone call to Hmrc.

I know this post is not a lot of help (sorry), but if and when you get it sorted, could your client move to paying for each tax period on monthly basis because I believe this may stop the differences.

Dave

  • Member
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  • 29 posts
  • # 113183

Hi Dave, sorry it wasn't clear on my post, they pay payroll weekly but the PAYE is paid monthly as per the monthly report from payroll manager.  Last November HMRC have it showing that there was more than £9000 owed for the month when it was only about £2000.  This was the most concerning difference and so for I have not been able to get to the bottom of it.  It has been going on for a couple of years and this tax year already in month 2 there are differences.  

  • Member PM.Dip
  • Practice Licence
  • 100 posts
  • # 113185

Hi

I've had the same problem for two clients. You're right the time/cost to resolve it is ridiculous.

In both cases I had to speak with HMRC to log with them that their figures were not agreeing with mine. Their response, in both cases, was that they would lodge the details with their investigations team and if at the year end they were not resolved they would be in touch.  As it is the cumulative figures that are submitted to HMRC it should rectify itself at some point. Both mine have now cleared.

You can run the HTML version of your RTI reports and check the information being submitted to make sure it agrees to what is coming through on the HMRC portal. 

Ultimately, if you have checked all your figures and you are confident that yours are correct, lodging the issues with the Investigations team will ensure that no chasing letters will be issued as they can cause further distress to the client - especially when you've told them you're sorting it out. I think this issue is more common that you'd like to think.

 

Hope that helps

Victoria

  • Member
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  • 29 posts
  • # 113186

Thanks Victoria

 

That is really helpful. I am happy their numbers are correct it is just so frustrating that HMRC take so long to deal with it, when I was dealing with them over the 2015-16 differences they told me the previous years had still to be sorted.

 

Jane

  • Associate PM.Dip
  • Practice Licence
  • 50 posts
  • # 113188

Hello

In an almost related subject, I've just finished my BA6 Exams and the earliest available date for the BA7 in my nearest assessment centre is 5 July so while I'm waiting to sit the exam I intend to study for the Level III Diploma in Payroll Management. I have been unable to find a text book on the ICB website and have contacted ICB on the phone but they have conifrmed they are now writing a text book and could not recommend an approved text book. Could anyone suggest a good text book/share their experience of payroll qualification?

  • 491 posts
  • # 113193

Have you got access to the account information at HMRC with an online login?

With the 'employers' own login (and in some cases now, your agent access) you can see the breakdown of all reported PAYE, NIC, Payments and any interest or other charges that HMRC have applied for at least 3 years back, for each and every month.

This would allow you to see where the discrepancies are in your own time, so that you know what to address HMRC with.

  • Member
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  • 29 posts
  • # 113195

Thanks Carol

 

Yes I have access and have done all the reconciliations.

  • Member PM.Dip
  • Practice Licence
  • 100 posts
  • # 113205

Same here Carol. There seems to be some kind of glitch in the system that HMRC cant resolve until the year end is complete.

It's really frustrating talking with HMRC when you have everything in front of you that has been submitted to HMRC yet their system mucks it up.

Even more annoying is their system can't help itself but allocate payments to the oldest debt irrespective of the reference you give a payment. I spent ages once on the phone reallocating payments only to be told that as soon as they send in another payment the system will rework it all again - and it did.

I've learnt now - if I'm confident my figures are right, HMRC will get there in the end, it might just take a bit of time! Lol

 

V

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  • 29 posts
  • # 113207

It is good to know I am not alone with this one.  Thanks for the replies.

 

Jane

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