PAYE advice as A N Other causes confusion

HMRC has issued advice to employers when it comes to filling out PAYE paperwork, as unusual names and test data cause confusion.

According to the taxman, more than 500 returns incorrectly claimed to employ A N Other in 2009/10, while 128 staff were entered as Mr, Ms or Mrs Dummy.

Such entries can cause problems for the employee, and can also take up valuable time to correct.

Commenting, Jim Harra, HMRC’s director of customer operations, said:

“Most employers get their PAYE returns right. The few who don’t can cause problems for their employees, for example, incorrect deductions of tax. Around 80 per cent of errors in employee data are due to an incorrect name, date of birth or national insurance number – straightforward information that can be collected and checked quite easily.

“So, whether you are employing ‘Mr or Mrs J Smith’ – or even ‘Mr or Mrs A N Other’, please use the full and official name on your PAYE paperwork. First names are very important, especially for common surnames.
“We really want employers to check that they are sending us the right details for all their employees, to make life easier for them, HMRC and their employees.”

Please contact us to find out how we can help with your PAYE paperwork.