Beating the system

April 15th 2015

In a world where there are penalties for everything, people can be tempted to try and beat the system. Some employers have attempted to avoid late filing penalties for PAYE RTI returns by all sorts of ruses: asking for employee hours earlier in the month; carrying overtime forward to the next month; or otherwise using approximate figures. Figures tweaked like this can lead to inaccuracies in the payroll, increased National Insurance costs and lower benefit entitlement for some lower paid workers. Remember:

 

  • It is possible to send an Earlier Period Update without incurring a penalty
  • Paying a worker for fewer hours than they actuially worked one month, and adding the hours onto the following month, could mean that the employee is paid below the Lower Earnings Limit one month and so misses out on National Insurance credits. It also means that the National Insurance cost in the following month will be higher than if earnings had been spread evenly
  • Tweaking the figures is inadvisable and can have a sting in the tail

Please contact DSC Chartered, Harrogate, if you would like to discuss this article in more depth.