Lost temporary job due to Corona Virus lock-down - only got £18 for a MONTH of Universal Credit

NedS

calcotti said:

NedS said:  You would obviously only notice this if the AP happens to end between the two dates (payment received and payment reported dates).

Which, as I understand it, shouldn't happen because employer is not supposed to report after the payment date.

Correct, they are not supposed to but employers do still report late. Saw a somewhat extreme example this week of a sole director paying themselves through PAYE who reported 5 months earnings at the end of March, a week after making a claim for UC and then wanted to dispute the very large earnings which were taken into account for the first AP. Wasn't his fault though as he'd given all the information to his accountant who deals with this stuff. Luckily he won't be fined for late reporting as the accountant also put the pay date as 31st March. However, he was a bit miffed he couldn't then furlough himself as he didn't have any earnings before the 19th March cut off date! So no UC, no furlough and no entitlement to SIESS - this shows the importance of reporting on time and the consequences of failing to do so.

calcotti

JessicaF_2 said:

calcotti said:

NedS said:  You would obviously only notice this if the AP happens to end between the two dates (payment received and payment reported dates).

Which, as I understand it, shouldn't happen because employer is not supposed to report after the payment date.

That was the original intention and rules behind RTI and indeed still reflects the legislative position. But HMRC have introduced relaxations so it is entirely possible for an employer to pay say on Thursday and then send the submission to HMRC on Saturday (if Saturday is the contractual pay date). Also, HMRC allow submission on a Monday if the contractual date was over the weekend - no late penalty, you can just enter a code on your submission. Similarly at Christmas, often companies shut down and pay very early (a week or 10 days early) but depending on what they put in box 43 determines which UC assessment period it falls in. 

I detect a  lack of joined up thinking - what a surprise!

JessicaF_2

calcotti said:

JessicaF_2 said:

calcotti said:

NedS said:  You would obviously only notice this if the AP happens to end between the two dates (payment received and payment reported dates).

Which, as I understand it, shouldn't happen because employer is not supposed to report after the payment date.

That was the original intention and rules behind RTI and indeed still reflects the legislative position. But HMRC have introduced relaxations so it is entirely possible for an employer to pay say on Thursday and then send the submission to HMRC on Saturday (if Saturday is the contractual pay date). Also, HMRC allow submission on a Monday if the contractual date was over the weekend - no late penalty, you can just enter a code on your submission. Similarly at Christmas, often companies shut down and pay very early (a week or 10 days early) but depending on what they put in box 43 determines which UC assessment period it falls in. 

I detect a  lack of joined up thinking - what a surprise!

  To be fair to HMRC some of the relaxations were only introduced to help the UC situation and reduce the 2 pays in one assessment period problem that was caused by using actual pay dates. So if someone had an assessment period from 25th to 24th and their pay day was the 26th, in month x - they get paid on the 26th and then the following month, they get paid on the 24th because the 26th is a Sunday. If the employer entered actual payment date - they would have two pays in one assessment period. So HMRC changed the guidance to say use the contractual pay date - the 26th, so that it gets into the right assessment period (which works most of the time, except if they send the submission after 9pm on the last day of an assessment period)

calcotti

JessicaF_2 said:

  To be fair to HMRC some of the relaxations were only introduced to help the UC situation and reduce the 2 pays in one assessment period problem that was caused by using actual pay dates. So if someone had an assessment period from 25th to 24th and their pay day was the 26th, in month x - they get paid on the 26th and then the following month, they get paid on the 24th because the 26th is a Sunday. If the employer entered actual payment date - they would have two pays in one assessment period. So HMRC changed the guidance to say use the contractual pay date - the 26th, so that it gets into the right assessment period (which works most of the time, except if they send the submission after 9pm on the last day of an assessment period)

I understood that bit which was joined up thinking - I can't see the logic of allowing employers to report late though.