HMRC have issued a reminder on their website of the procedures and some hints employers should follow when moving pensioners to a new PAYE scheme reference. The reminder has been issued as a result of errors made that have led to the issue of incorrect codes and forms.

The first Full Payment Submission (FPS) from the new PAYE scheme reference must be submitted after the last FPS from the old reference has been sent. If this is not done, HMRC will set up the new pension source as a secondary employment and may issue incorrect codes.

It is also important to ensure that the start date of the first FPS relates to the date that the pensioner joined the new scheme reference. If the start date used is the date that the pensioner started at the old scheme reference this will wrongly create employments for earlier years at the new scheme reference.

HMRC have also published details of a consultation proposing legislative changes to Real Time Information, with comments due by 24 January 2014. These changes include the changes to be made to the PAYE Regulations for direct collection schemes and employers exempt from online filing; it also covers the provisions needed in the PAYE, the NICs and the CIS Regulations to complete the legislation for late filing and late payment penalties, including a consequential amendment to switch off the current late filing penalty, and a small change to terminology.