More than just a tax issue

Victoria Todd and Sharron West highlight the impact which real time reporting of PAYE information can have on employees receiving universal credit

Real time reporting of PAYE information has been with us now since 2013. According to the RTI post implementation review report published in December 2017, HMRC’s view is that: ‘RTI is performing well with HMRC processing real time information for more than 40 million employees and occupational pensioners to support PAYE and universal credit.’ However, the report acknowledged that ‘a proportionately small number of data quality issues and mismatches between HMRC and employer records continue to create discrepancies’. But even a small proportion of 40 million records means that many thousands of taxpayers are likely to be affected.