HMRC have the facility to allow Payroll Departments to send details of the Payroll Number or Reference for each Employee in order to update the HMRC PAYE database. This means that when P6’s or P9’s are received, either on paper or electronically, they should include the Payroll reference number. This makes matching the incoming information far more efficient. Trouble is that some times HMRC send you back a paper listing of “Works Numbers that can not be updated on the HMRC Computer system". The main reason that HMRC are unable to update their Computer systems is the fact that the HMRC database does not have the Employee working at the PAYE reference which sent in the Works number Update. Strange, one would think that having sent in a Form P45 or Form P46, HMRC would be in a position to change their information systems such that they knew where the Individual was actually working.
The expression “Ah, If Only” springs to mind. There are many reasons for HMRC not to accept or should that be, act upon, the information supplied by Employers. This means that in very many instances, HMRC have noted the Individuals employment as being completely different to the real employment. This means that either “you didn’t send a P46 or P45(3)” or that you did and somehow it “got lost” within HMRC's’ offices?The really good bit is that HMRC send notification of those cases back to the Employer that submitted the Works Number Update.
Wait a minute, HMRC’s systems are in error, so the way to deal with the situation is to send the details to the Employer? Guess what most HMRC's staff believe?
A review of some of the Case Studies on the HMRC Website make frightening reading, as the extract below indicates:-
One of the largest payrolls managed in CMG’s Prestatyn office is a large retailer with 59,000 employee records. This means processing about 47,000 forms P6 each year.With the intricacies, nature and high staff turnover of the large retail payroll, it was decided to assess the mismatch rate before deciding whether to continue with the process.The results of this report showed an error rate of 21%. Looking at this positively, it means 79% or 42,390 records were correct.
Looking at things another way, perhaps less positively but more accurately, HMRC had 16,610 Individuals who should have been shown as being Employed by CMG, employed by another PAYE reference.
A 21% error rate is not something to be just accepted, is it?
Want to know what to do with the paper listing of “Rejections”? Send them straight back to your local HMRC Office and tell them you want the matter sorted out immediately. Have you WNU'd? Tell us about your experience.
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