SolvedDMBM519020 | Debt and return pursuit: PAYE RTI: RTI overview and legislation: RTI legislation
From HM Revenue & Customs · Debt Management and Banking Manual
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RTI PAYE, NIC & CIS legislation
Due to the introduction of Real Time Information (RTI) in 2012, there was a need to amend legislation. The existing legislation had to incorporate the changes RTI had made in operation and recovery of PAYE. The table below shows the changes that have been made and a brief explanation of the regulation.
PAYE legislation
Existing legislation - The Income Tax (Pay as You Earn) Regulations 2003
Amending legislation - The Income Tax (Pay as You Earn) (Amendment) Regulations 2012 and The Income Tax (Pay as You Earn) (Amendment No. 2) Regulations 2012
| Existing tax regulation | RTI amendment | Subject | Meaning |
|---|---|---|---|
| None | 2A | An RTI employer | An employer who has been asked by or agreed with HMRC to comply with RTI regulations.From 6 October 2013 all employers. |
| None | 2B | An RTI pension payer | A pension payer who has been asked by or agreed with HMRC to comply with RTI regulations.From 6 October 2013 all pension payers. |
| None | 67B | Electronic submission of FPS | Requirement to submit an electronic RTI return. |
| None | 67CA | Reference No. to be included with electronic submission of FPS | Requirement to include reference number with return under Reg 67B. |
| None | 67D | Paper submission of FPS and due date of return | Religious objectors and care/support workers can submit paper FPS. Due date 14 days after tax period end. |
| None | 67E | Amendment to FPS | Employers must correct the information in the first FPS made after the discovery of the error. |
| None | 67F | No returns are due | Employers may advise if there is no return due. They must advise on an FPS/EPS. |
| None | 67G | Payments | Employers must pay HMRC the amount deducted for the month. If this is a negative amount they can recover this from HMRC. |
| 78 | 75A | Specifying the debt | If the employer does not submit an FPS or nil EPS HMRC can specify the debt based on previous payments/returns. |
| 78(6) | 75A(8) | When employer can request a quantification | During the seven-day specification notice period, if an employer believes they have paid the correct amount due, but HMRC disagrees, the employer can request HMRC quantify the amount due. |
| 78(8) | 75A(10) | HMRC’s right to enforce the specified amount | If the amount not paid in full within seven days, the amount becomes due in line with 67G. |
| 78(10) | 75B | Employer’s right to claim back overpayments due to paying specified amount | If, due to paying a specified amount, the employer pays more for the tax year, the employer is entitled to set-off the excess amount against any tax due for any subsequent tax period, or claim a repayment. |
| 82(6) | 82(6) | Interest | HMRC can charge interest on any late payment of the FPS tax amount due. |
NIC legislation
Existing legislation - The Social Security (Contributions) Regulations 2001
Amending legislation - The Social Security (Contributions) (Amendment No.3) Regulations 2012
| Link to existing PAYE regulation | NIC legislation | Subject | Meaning |
|---|---|---|---|
| 2A | Para1 Sch 4 Sub para 4 | An RTI employer | An employer who has been asked by or agreed with HMRC to comply with RTI regulations.From 6 October 2013 all employers. |
| 67G | Para 10 Sch 4 Sub para 2/para 3A | Payments | Employers must pay HMRC the amount deducted for the month. If this is a negative amount they can recover this from HMRC. |
| 75A | Para 15 Sch 4 Para 1B | Specifying the debt | If the employer does not submit an FPS or nil EPS HMRC can specify the debt based on previous payments/returns. |
| 67B | Para 21A Sch 4 | Electronic submission of FPS | Requirement to submit an electronic RTI return. |
| 67D | Para 21C | Paper submission of FPS and due date of return | Religious objectors and care/support workers can submit paper FPS. Due date 14 days after tax period end. |
| 67E | Para 21D | Amendment to FPS | Employers must correct the information in the first FPS made after the discovery of the error. |
| None | Para 21E | Submission of EPS | Where appropriate employers must submit, within 14 days after the end of the tax month, an EPS when the NIC specified is greater than zero. |
| None | Para 21E(5) | Amendment to EPS | Employers must correct the information in the first return made after the discovery of the error. |
| 82(6) | 82(6) | Interest | HMRC can charge interest on late payment of any FPS NIC amount. |
CIS legislation
Existing legislation - The Income Tax (Construction Industry Scheme) Regulations 2005
Amending legislation - The Income Tax (Construction Industry Scheme) (Amendment) Regulations 2012
| Link to existing PAYE regulation | RTI amendment | Subject | Meaning |
|---|---|---|---|
| None | Reg 56 para 2B | EPS: CIS deductions suffered by the qualifying subcontractor | Qualifying subcontractor must submit a return showing the deductions made. |
| None | Reg 56 para 2c | EPS: Submission within 14 days of the end of the tax period | Submission must be made within 14 days of the end of the tax period. |
| None | Reg 56 para 2d | EPS: Amendment required | The employer needs to submit an amendment in the first return made after the discovery of the error. |
Student Loans legislation
Student Loans legislation is incorporated in The Education (Student Loans) (Repayment) (Amendment) Regulations 2012.