HMRC have published a number of updates in relation to RTI including guidance on the importance of recording the number of hours worked by an employee under real time reporting and their “top tips” for employers who are preparing their first Employer Alignment Submission and Full Payment Submission. Also published is a note dealing with how to report ‘harvest’ casuals in real time as a result of some difficulties being experienced. HMRC is also now processing requests for annual schemes.

Employers are reminded that it is important to record the correct number of hours worked by an employee to help ensure that they receive the right amount of benefits and tax credits they are entitled to. In particular, an employer should only select ‘D other’ if their employee does not have a regular pattern of employment or the payment relates to an occupational pension or annuity. Otherwise, the employer should record the hours worked in accordance with the guidance note.

If an employer incorrectly selected ‘D other’ in earlier submissions it is not necessary to resubmit an earlier Full Payment Submission (FPS). Instead, the correct hours should be reported on the next FPS.

Employers of harvest casuals who pay someone for more than one day but less than two weeks should note that they can report payments to a particular employee on a weekly basis provided that:

• Each individual payment is below the Lower Earning Limit (LEL) of £109. Employers should report any payments above the LEL separately.
• The weekly Full Payment Submission (FPS) report is made within the seven day period allowed for the earliest payment (the seven day period begins on the day after the day on which the earliest payment is made).
• For reporting purposes, the harvest casual is treated as starting on the date of the first payment and treated as leaving on the date of the last payment covered by the FPS.

HMRC have updated the harvest casuals and casual beaters guidance accordingly.

HMRC have also issued a notice clarifying that where no occupational pension is being paid the Annual Amount of Occupation field on the Full Payment Submission (FPS) should be left blank. Entering 0.00 in this field indicates that an occupational pension is paid and although the payment is nil this could have a knock-on effect as it prompts an automated notification to the Student Loan Company advising that an occupational pension being paid.

HMRC intends to correct those cases affected and plans to enhance IT systems to prevent this occurring in the future. According to the notice, employers affected do not need to contact HMRC in the meantime.