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HMRC internal manual

Debt Management and Banking Manual

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HM Revenue & Customs
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Debt and return pursuit: PAYE RTI: RTI overview and legislation: RTI legislation

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.