How to handle RTI IDs when changing software provider

Solution Properties

Solution ID:

200427112556826

Last Modified Date:

Tue Dec 17 08:54:54 UTC 2024

Taxonomy Path:

Case category//How do I...//processing

Author:

[email protected]

How to handle RTI IDs when changing software provider

Description

When moving software providers, or recreating a payroll, you need to handle employees' RTI IDs correctly.

The RTI ID is a unique reference for each employee that your software includes on the Full Payment Submission (FPS). HMRC's systems recognise an RTI ID as an employment.

You need to either enter the original RTI ID for each employee, or use the 'unknown' flag. If you don't do this correctly, employees' liability becomes duplicated with HMRC, as their systems recognise a new RTI ID as a new employment.

Cause

Resolution

If you have the original RTI IDs, enter them when you create each employee's record.

Use the unknown ID option for any employees whose original RTI ID is unavailable. You can't use the unknown option for directors.

Click the relevant option below to see your next steps.

▼ I have the correct RTI IDs

We recommend you reprocess rather than enter year to date (YTD) values. Your software can only calculate the employment allowance, and if applicable the apprenticeship levy, if you reprocess.

Reprocess the payroll

Click Employee, then Quick Employee and enter the employee's details.
Next to RTI Payroll ID, click Edit.
Enter their original RTI Payroll ID.
Click the Old Payroll ID drop-down and select As above, then click OK.
Repeat Steps 1 to 4 until you've set up all employees.
Reprocess the payroll for each period and submit a dummy fps for the last period HMRC received any liability values.
Process the payroll for the next period and submit a live FPS as normal.

CAUTION: The dummy FPS prevents you re-submitting liability for the whole tax year to HMRC. If you've already submitted liability for the whole tax year, contact HMRC for advice.

Enter YTD values

Click Employee, then Quick Employee and enter the employee's details.
Next to RTI Payroll ID, click Edit.
Enter their original RTI Payroll ID.
Click the Old Payroll ID drop-down and select As above, then click OK.
Enter the employee's Year To Date values.
Repeat Steps 1 to 5 until you've set up all employees.
Set the process date to the period after HMRC last received a liability submission.
Process and update the payroll.
Submit an FPS.

▼ I don't have the correct RTI IDs

If you need to reprocess payroll:

If possible, for example where you have access to your old software, get the original IDs and follow the I have the correct IDs section. Follow the section below if you can't obtain the original RTI IDs.

Unknown flag

Follow the steps below to set up employees where you don't have the original RTI ID.

NOTE: Only use the steps below for employees, not directors.

Click Employee, then Quick Employee and enter the employee's details.
Next to RTI Payroll ID, click Edit, then select Unknown from the Old Payroll ID drop-down.
Enter the employee's Year To Date values.
Repeat Steps 1 to 3 until you've set up all employees.
Set the process date to the period after HMRC last received a liability submission.
Process and update the payroll.
Submit the FPS.

▼ Directors

It's not possible to enter YTD values for Directors, so you must enter the original RTI ID and reprocess.

Before you reprocess

If you use a different RTI Pay ID than the original, it can cause duplication with HMRC. Check your old software for the RTI ID, or if this isn't possible, contact HMRC to ask for the IDs.

Reprocess the payroll

Click Employee, then Quick Employee and enter the director's details.
Next to RTI Payroll ID, click Edit.
Enter their original RTI Payroll ID.
Click the Old Payroll ID drop-down and select As above, then click OK.
Repeat Steps 1 to 4 until you've set up all employees.
Reprocess the payroll for each period and submit a dummy fps for the last period HMRC received any liability values.
Process the payroll for the next period and submit a live FPS as normal.

You can now process the payroll for your next pay period and submit the FPS as normal.

HMRC can't merge the records

If you've already set up employees and submitted an FPS without accounting for the RTI ID as above, HMRC may hold duplicated liability. This is because each employee now has two RTI IDs on HMRC's systems instead of one.

If you're not sure whether HMRC have two RTI IDs per employee, contact HMRC to check before you follow the steps below.

To resolve this, follow the steps below to remove the duplicated liability and mark these new RTI IDs as leavers on HMRC's system.

Only follow these steps for the current tax year and if HMRC has been unable to provide any other advice to correct the issue.

Rollback to remove the processing history.
TIP: For help with using rollback, visit our correct a previous payroll run guide.
Set the employees' tax code to 0T wk/m1.
Process and Update zero pay for the last period submitted.
Mark all the employees as leavers.
Submit an FPS Adjustment.
Follow the steps in either of the sections above.

You've now removed the incorrect values and RTI IDs from HMRC's systems. Return to the beginning of the Resolution section in this guide to set these employees up correctly.

Steps to duplicate