HMRC have produced some guidance for employers who have been reporting payments to employees in real time that do not match with the actual date of payment or with tax periods.
Prior to RTI it was not uncommon for employers to run their payrolls on a calendar month basis and therefore treat payments say made between 1 and 5 June (ie in the ‘May tax month’) as occurring in the ‘June tax month’, which runs from 6 June to 5 July.
Some employers have also been treating payments as if they were made on the day the payroll was run, which might be in an earlier month.
Since the information submitted under RTI determines how much PAYE and NIC HMRC expect to receive from an employer for each tax month, it is now important that payrolls correctly align with tax months.
The guidance on how to move from an unaligned position to an aligned position is set out in the attached guidance and can also be found at: