Employment tax updates: August 2016

David Heaton FCA CTA, David Heaton Tax Ltd on RTI systems rejecting the latest national insurance number codes, revised guidance on contractor loans, Basic PAYE Tools, student loan start notices, changes to the proposed legislation on the apprenticeship levy

RTI system rejects latest NINO codes in update fail

HMRC has begun to issue a new series of national insurance numbers (NINOs) beginning with the letters ‘KC’ to those reaching the age of 16 and to new arrivals in the UK. However, it seems that the real time information (RTI) system rejects any submissions using the new numbers as the software validation processes have not been updated.

It has been confirmed that ‘KC’ is a valid NINO prefix, so employees with a KC NINO do not need to request a new one. HMRC’s advice for employers experiencing issues trying to submit RTI data for an employee with a new KC NINO is to leave the field blank, but make sure that the employee name, address and date of birth fields are correctly completed. HMRC’s system will then allocate the PAYE data to the correct record. This will solve the problem of rejected submissions, but only in the short term, and not for all purposes.

HMRC’

Your free features:

  • Breaking news and expert analysis
  • Customisable daily newsletters
  • Six free CPD learning modules each year
  • Personalised CPD tracker
  • Top 75 Firms league tables
  • Regulatory changes
  • Hardman’s Tax Data

Sign up to Business & Accountancy Daily

Related Articles
Subscribe