Legislation
Mastering PAYE Payments
Date
Ongoing requirement
Summary
Paying PAYE accurately to HMRC is crucial for every payroll professional. This being said, HMRC are reporting that they often receive requests for reallocation of payments for PAYE Employers and call for all employers to make sure their payments are allocated correctly in the first place.
They offer guidance to ensure your payments are seamlessly allocated, by asking you make sure to include your 13-character Accounts Office reference. For pinpoint accuracy of allocating your payment to a particular tax period, you need to add four more numbers to the end.
These digits signal to HMRC the specific tax month or quarter your payment relates to. For instance, for the period from April 6 to May 5, 2024, your final four digits should read 2501. It’s like adding precision to your payment allocations.
Important: Be sure to check the guidance from HMRC. They are actively promoting this initiative, which suggests that they receive a substantial number of reallocation requests.
Payroll Legislation Guide
July – August 2024 | Election edition Do you know the dates of all the complex payroll legislation changes? Are you aware of what you need to do to ensure your business…