DMBM519020 - Debt and return pursuit: PAYE RTI: RTI overview and legislation: RTI legislation

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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.