HMRC PAYE RTI filing
Posted 04 Apr 13
Information on RTI filing on the HMRC website is focused on the employer, who has to file this information.
Not much is mentioned of the impact to the hardworking tax payers, the employees.
Tawanda Accountants are currently dealing with cases where HMRC is demanding repayment of underpaid taxes for those with multiple employments, dating back as far as five years. This is all going to change with the new RTI filing system.
Our tax expert responds to some of our client’s frequently asked questions.
Q: How does this impact me as an employee?
A: If you have just one job in a tax year, then it won’t really affect you. You will continue to be charged tax as normal. However, if you have more than one job, whereas HMRC used to have visibility to your total tax liabilities after April each year, now they will be able to see any over or underpayments on a weekly or monthly basis. You can expect HMRC to get in touch and request adjustments to your tax payments more frequently.
Q: Will HMRC report to my primary employer that I have a second job?
A: We are expecting HMRC to maintain confidentiality.
Q: Is a working under a Limited company the answer?
A: For your part-time employments, if you have the option, then this might mitigate your tax liabilities.