Information on the number of applicants to the EU Settlement Scheme for whom HMRC holds tax credit records and not PAYE data is not held by HMRC. Producing estimates based on full administrative data would require setting up data sharing arrangements between the Home Office and HMRC which could only be achieved at disproportionate cost.

Information filed by employers through RTI is applied equally to all relevant customer records. HM Revenue & Customs (HMRC) do not make a distinction between low and high earners when applying rules within tax calculations.

Employers who pay all of their employees under the Lower Earnings Limit for National Insurance Contributions (NICs) and have no tax deducted are not required to register with HMRC. The employer is not required to report information to HMRC until there is a tax or NICs deduction payable to HMRC.

There are no plans to mandate employers who pay small amounts of wages to all of their employees to register with HMRC.

During the period 17 June 2018 to 16 June 2019 there were 77,952 RTI calculations disputed by claimants, of which around a fifth were upheld. 42,715 (55%) were as a result of late RTI data from employers.

The Department continues to work with HMRC to reduce the impact of late RTI on Universal Credit payments. We monitor RTI data, and where expected earnings are not reported, HMRC will contact the employer to investigate, with the intention of all earnings being reported before the end date of a claimant’s Universal Credit Assessment Period.

The Department has been working closely with HMRC since Universal Credit went live in 2013 to support and inform employers who report earnings to emphasise the importance of timely reporting via the Real Time Information (RTI) system.

HMRC have updated their guidance to reiterate to employers the importance of reporting accurate dates and the impact on payment cycles; the Financial Secretary to the Treasury is also working closely with HMRC and employers to do this.

RTI concerns, questions and complaints data is not centrally collated and could only be supplied at disproportionate to the Department.

The Department received over 31 million RTI notifications from employers for Universal Credit claimants in the last 12 months (17 June 2018 to 16 June 2019). These records were used to produce over 18.5 million individual earnings calculations and 77,952 of those calculations were disputed by claimants, of which around a fifth were upheld.

The Department has been working closely with HMRC since Universal Credit went live in 2013 to support and inform employers who report earnings to emphasise the importance of timely reporting via the Real Time Information (RTI) system.

HMRC have updated their guidance to reiterate to employers the importance of reporting accurate dates and the impact on payment cycles; the Financial Secretary to the Treasury is also working closely with HMRC and employers to do this.

RTI concerns, questions and complaints data is not centrally collated and could only be supplied at disproportionate to the Department.

The Department received over 31 million RTI notifications from employers for Universal Credit claimants in the last 12 months (17 June 2018 to 16 June 2019). These records were used to produce over 18.5 million individual earnings calculations and 77,952 of those calculations were disputed by claimants, of which around a fifth were upheld.

Late filed returns may be subject to penalties under Schedule 55 Finance Act 2009.

The Basic PAYE Tool (BPT) is a downloadable tool which HMRC has made available, at no cost to the customer, to enable small employers to run their payrolls in compliance with the PAYE legislation. Information on the number of employers who use the BPT is not readily accessible and could only be provided at disproportionate cost.

HM Revenue and Customs (HMRC) publishes information on income and tax by percentile groupings in Table 2.4 of their Income Tax statistics and distributions publication, available here: https://www.gov.uk/government/statistics/shares-of-total-income-before-and-after-tax-and-income-tax-for-percentile-groups.

HMRC also releases a publication containing quarterly statistics about pay earnings derived from Real Time Information. These statistics are relatively new and their content is under development.

HMRC currently enables employers to pay their PAYE/NIC liability by Direct Debit. Guidance on how to do this can be found on the gov.uk website at https://www.gov.uk/pay-paye-tax/direct-debit.

Employers can currently only make single Direct Debit payments, meaning they must set up a payment each time they pay. This is because the amount owed can include elements which do not have to be reported to HMRC until too close to the payment deadline to allow us to automatically collect by Direct Debit.

HMRC recognises the benefits of payment by Direct Debit and will continue to look at how to enable customers to set up ongoing Direct Debit arrangements.

The Department does not hold the information requested. The BACS hash is not passed to the Department from HMRC. The Department assist HMRC with Real Time Information disputes, and a manual intervention can be made to correct the Universal Credit award when validated against a claimant’s pay slips.

The BACS hash information feed that HMRC receives to support the validation of Real Time Information (RTI) submitted by customers contains the date that earnings are credited to an employee’s bank account. The availability of this information is restricted to that automated process.

The BACS hash information feed that HMRC receives to support the validation of Real Time Information (RTI) submitted by customers contains the date that earnings are credited to an employee’s bank account. The availability of this information is restricted to that automated process.

HMRC’s assessment of timely filing of Real Time Information (RTI) is based on the pay date provided by employers and pension providers.

HMRC began the phased introduction of Real Time Information (RTI) in 2012. Under RTI, information about tax and other deductions under the PAYE system is transmitted to HMRC by the employer every time an employee is paid.

Since April 2014 all employers have been required to report in real time with 1.9 million schemes covering 48 million employees now reporting through RTI.

HMRC’s analysis of PAYE data, submitted through RTI, for the first 12 months since April 2017 indicates the reform to the off-payroll working rules (often known as IR35) in the public sector has raised an additional £550 million in income tax and NICs in its first year.

RTI is a proven and effective tool for the monitoring of PAYE data including those public sector engagements to which the off-payroll working rules apply.

HMRC does not hold an overall assessment of the level of incorrect RTI. Whilst incorrect data is sometimes submitted by employers, HMRC systems have been designed to use different mixes of that data to match records correctly where possible. The timeliness of RTI has consistently improved, with 95.5% of all RTI submissions being on time in the last closed tax year.

The vast majority of Universal Credit claimants’ (around 98%) claims are administered in real time and accurately. In cases that are affected by inaccurate RTI data, a manual intervention can be made to ensure that claimants receive their Universal Credit award, validated against their wage slips.