PAYE payment reported late - after UC month. What happens

seatbeltnoob

hello

I am self employed, ltd co director and PAYE is done by myself, my company pays me.

People are going to ask so I'll tell you how this happened. For month of July, PAYE has to be paid by 5th August. It has to be filed with HMRC by 19th August. HMRC server was down for maintenance and PAYE was not sent to HMRC by my accounting software. I forgot to come back to it and resubmit and in my mind ticked it off as job done.

So my UC period is 13th to 12th. I file everything as normal on the 13th August. And notice the award is much higher than normal. I inspect it an notice my PAYE wages aren't in the pay calculation. I log into my accounting sofrware and discover it hasn't been filed.

I file away and the software does it, telling HMRC that employee [me] was paid on 31st July.

I have contacted universal credit and informed them of this. They have got back to me saying they will get info from HMRC soon and update accordingly.

My question is will everything be done correctly. I submitted the PAYE RTI on 13th August, which tells them employee [me] was paid on 31st July.

Will UC correctly assign my wages to the correct period spanning 13th july to 12th august. Or will it be based on the date of RTI filling which will roll it over to the next UC month?

Thanks in advance.

tomtom256

Do they know you are self-employed, as you should also be declaring the businesses income and expenses at the end of every assessment period.

I am guessing not as this would have flagged the wages not feeding through.

seatbeltnoob

tomtom256 said:

Do they know you are self-employed, as you should also be declaring the businesses income and expenses at the end of every assessment period.

I am guessing not as this would have flagged the wages not feeding through.

yes, they know. and yes I am submitting the income and expenses properly.

Newcad

As you are wearing 2 hats here, both employer and employee,  then you have to seperate which government department each hat is dealing with.

You say yourself that you didn't file it with HMRC as an employer until the 13th, the day after your July/August AP had ended.
 In which case I'd expect that as an employee it will be treated in UC as no wage paid in your July/August AP, and so you will have 2 wages in your August/September AP (provided you file with HMRC on time this month).

Of course UC can do some surprising things, particularly where self employment is involved.
Plus there have also been concerns in the past about employers reporting wages late making the RTI inaccurate and I think UC implemented something about that?
I guess that you will find out when you get paid UC on Friday.

seatbeltnoob

i heard back from UC. the PAYE filing states employee was paid on 31st July, So UC will retrospectively amend the 13th July to 12th August UC payment.

It will raise an overpayment for the difference between what was granted to me and I should have been paid. I will just have to pay the overpayment back.

UC staff via journal qery said they will get updated payroll data from HMRC in due time.

seatbeltnoob

Newcad said:

 In which case I'd expect that as an employee it will be treated in UC as no wage paid in your July/August AP, and so you will have 2 wages in your August/September AP (provided you file with HMRC on time this month).

The RTI includes date of PAY with the PAYE I think it will be fine. I will update this thread.

Whether the put my PAYE earnings in each month or do 0 in 1 month and 2x in the other month. In the end it will all work out fine. (overpayment 1st month, and underpayment the next month).

seatbeltnoob

Update as promised. Everything was handled as I have posted above^^

After one additional payment cycle, the issue was retrospectively fixed. 

The missing PAYE earnings was attributed to the correct period in which it was supposed to be paid and didn't get rolled off to the next period.

They just add a journal entry with an overpayment letter to ask to repay the amounts back.

I have the option to make full/voluntary payments or have the money deducted from future UC payments.