If you use the business tax dashboard and are an employer, then you will know that you can view your PAYE balance online. This should provide an accurate picture of your account. However, since the dashboard is not updated daily, it may provide an inaccurate picture.
HMRC have confirmed that at present, for real time submissions, updates will only be made twice a month, after the 6th and 19th for the tax month just ended. This means that larger employers may find it difficult to review their PAYE record and discrepancies may have arisen due to the time in which it takes HMRC to process the RTI data.
There have been a number of problems reported with employers being chased for underpayments and some being advised to reduce the next payment for overpaid PAYE.
For the system to work correctly, employers must also ensure that the correct payment references are used when making PAYE payments. More information about using the correct numbers can be found here.
HMRC has admitted that it is having some problems and as a result has set up a dedicated team to look why some PAYE schemes have experienced ongoing problems in reconciling what HMRC say is due and what has been paid.
If we run your payroll scheme, then contact us for advice. If not, then review your business tax dashboard to see if you can reconcile the submissions and the payments made, and certainly make contact with HMRC if you believe HMRC to be wrong.
If you employ a large number of staff this may prove difficult under the current circumstances, meaning you may need to wait for the dedicated team to review your account.
