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HMRC retrospectively rejects CIS payrolls from RTI pilot

October 18, 2012


HMRC has confirmed that some Construction Industry Scheme (CIS) payrolls put forward by commercial software developers for the Real Time Information (RTI) pilot have been rejected retrospectively by HMRC.

The status of non-standard PAYE schemes and whether or not they are eligible for the RTI pilot has become unclear over recent.

HMRC uses software developers and other third parties to propose volunteer employers willing to participate in its RTI pilot, which HMRC itself confirms as suitable. In some instances HMRC has accepted CIS payrolls onto the pilot only to reject them.

Payroll World which reported this development discovered it following comments made on Learn Payroll’s payroll-help forum by an unidentified user.

The user was reported as saying: “After applying for all our clients to go into the RTI pilot from November and being accepted we (and our clients) have started receiving phone calls since Friday from HMRC apologising but saying certain clients have now been rejected!

“To say I am furious is an understatement as this affects a large proportion of our 300 clients we thought were on the trial. If I had known this before we may well not have joined the pilot at all.”

Payroll World reported an HMRC spokesman as saying: “The RTI pilot is software developer-led with volunteer software providers nominating their customers to participate. We asked developers to nominate employers operating Standard PAYE schemes.

“When we have been completing our final checks for the next pilot stage, we have identified that some developers have nominated employers operating non-standard schemes – particularly CIS schemes.

“We will be piloting some CIS schemes, to test these scenarios in a controlled manner, but are unable to accept all the CIS schemes nominated. We are therefore contacting those employers who are unable to join the RTI pilot to advise them that they should continue operating current PAYE until April 2013.”

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