Systemic issues found in HMRC RTI data collection

A new report has shown that there are systemic issues in HMRC’s Real Time Information data collection and customer experience.

Part of the payroll system for over 12 years, Real Time Information (RTI) is supposed to make the tax system process approachable, digital and fair.

However, a report from the Chartered Institute of Payroll Professionals (CIPP) has found that this is not the case for every employer and taxpayer, highlighting the many issues that payroll professionals are experiencing.

For example, some employers have been waiting upwards of two years for a resolution on an erroneous charge on their tax account.

As a result of its findings, the CIPP is calling for:

• Greater transparency on the backlog of RTI issues being handled by HMRC
• A review of the RTI system processes causing issues and its capacity for expansion
• Employers to have view of the RTI data held by HMRC in relation to the submissions sent by them

Mathew Akrigg, Policy and Research Officer at the CIPP, said, “Employers and taxpayers need clarity in how their issues will be resolved in a fair and timely manner. We hope this report highlights some of the issues that payroll professionals face daily and encourages HMRC to work with us on a way to move forward and improve processes.”

HMRC’s response to the report:

“HMRC welcomes the work the CIPP and its members have done to gather insight from employers and payroll providers to produce this report regarding Real Time Information. The majority of the data processed through RTI is correctly allocated, but in the small number of cases where mismatches occur, it is important HMRC and employers take action together to put things right in a timely way.

“We will continue to work with the CIPP on how we can identify necessary improvements to the RTI system, further enhance employer education, guidance and systems, and how we can improve our customer service offering when problems do arise.”

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