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• # 113730
• Sat 03 Sep 2016 12:27 PM

Hi,

I am really struggling with the ICB pension solution with Aviva.

I have one client with just 3 employees so it is a huge amount of work for just this. My client staged last month. I entered all the pension details on Payroll Manager, the software I use. One question was about tax relief and I checked the net pay arrangement box. I could not find any details as to what is was. I then submitted the return to HMRC as usual.

In the smallest of print on and e-mail from Aviva I have now found that it should be 'Relief at Source' that I checked. When I alter it on the payroll software it changes the tax that should be paid by the employees and their net pay and the pension contribution. It also changed the tax for the month that has been submitted (August)

What should I do?

Am I now correct that the tax relief is 'at Source' ?

Do I try to resend the payroll details to HMRC? (not easy with payroll manager, and HMRC don't like it)

What do I do about the now incorrect Aviva contributions? I enter these manually as I just could not use the CVS file - it just won't upload and for 3 people it was quicker to do it manually.

Talking to my client and adjusting the pay is probably the easy bit - he knows I have had difficulty and is just thankful I have been able to come up with a pension plan for him.

Any help on this would be appreciated.

Thank you

Gillian

•   Macclesfielod
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• # 113741
• Sun 04 Sep 2016 08:11 PM

Hi Gillian

I can't answer your questions directly about Aviva, as I've not chosen this path with any of my clients as yet so don't know what you need to do there - however, I really think you should give LEBC a call and I'm sure they'll help you through this - thats what they're supposed to be there for.

With regards to re-submitting the RTI to HMRC - this is very easy, and although you're right that HMRC try to encourage people not to do this, as you're still within the 'tax month' - it would be better to do this sooner rather than later if you're going to do it, and it wont cause any problem at HMRC. In Payroll Manager - you go to Tools / Online Filing / IDs & Passwords and just tick the 'Temporarily Allow Submission to be Resent', then you can resend them after correcting everything.

It should indeed be 'relief at source' and this will change your employees tax, because basically - for every £10 of contribution, on the relief at source, the employee will only pay £8 and the Government will contribute the other 20%  - £2 - to make it up to the £10. If they're not on relief at source, they would have to pay the full £10. So their payroll is being afected by paying tax on £10 instead of on £8 of their earnings.

Carol

• Carol Saunders
  Lady of Ledger Book Keeping
  Telford, Shropshire

  
  

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• # 113749
• Mon 05 Sep 2016 10:12 AM

Hi Carol,

Thank you so much for your help.

I have tried a number of times to contact LEBC about this and either get a voice message or no reply. I eventually phoned the switchboard and they put me through to another extension - guess what? still no reply.

As this is urgent and I am now sure that the pension should be 'Relief at source' I have rerun the payrol and resubmitted it to HMRC. As you said, that was easy. I followed your instructions and it resent easily with the reason given as correction to earlier submission.

Gillian

•   Macclesfielod
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• # 113766
• Wed 07 Sep 2016 08:56 PM

Hi Gillian

Any more luck from LEBC yet???

• Carol Saunders
  Lady of Ledger Book Keeping
  Telford, Shropshire

  
  

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• # 113807
• Fri 16 Sep 2016 10:22 AM

Yes, thank you. I finally spoke to them today. (Part of the urgency, and late response here is we were going on holiday and I had to get the payroll done before we went) 

It is definitely a Relief at Source scheme. They have told me what to do with the payments on the Aviva site too. Since too much will have been taken for the August payroll I deduct the difference from this month's payroll and post that on the Aviva site. The total for the two months will then be correct.

Thanks for your help, it was invaluable. At least the payroll and pension are now correct.

Gillian

•   Macclesfielod
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