3472786 - PY-GB - Negative PBIK Values in RTI Table causing FPSA Negative Value Error

Scenario

For tax year 2022 -2023 an employee is in receipt of a company car. In April 2023 the payroll team are notified that the employee no longer has the vehicle from 10^th March and no new car is being assigned. Payroll update IT0442 is ready for April’s payroll.

March 2023 – Period 12

CARCO2 and RTI table reflect the employee is in receipt of the car for the full tax year.

April 2023

The end date of the car is processed and payroll retros back to March 2023.

March in April

The annual car benefit is recalculated to £2412.00. This was originally calculated as £3370.00 so the employee has been taxed on £958.00 car benefit too much.

The values in RT are updated with the revised PBIK value and /5T1 for the taxable pay adjustment is created to be carried forward to the current period. Also, as this is a retro over the tax year /A72 is created to identify an amount of money relating to a different tax year.

April in April

/5T1 is carried forward and added to the RT table as /5T2. This is then used to reduce the employee's taxable pay for the current period.

/A72 is carried forward as /Z72 to adjust the Car Benefit so that you are able to identify the adjustment amounts that have been carried forward from a previous tax year.

Table RTI is updated to reflect the adjustment to Payrolled Benefits but as the employee is not in receipt of any other benefit this period, it reflects a negative amount.

When the FPS is created for April 2023 it does not report the adjustment to the Payrolled Benefit YTD value and only includes the period value.

May – March 2024

Payroll is run successfully for the rest of the year and the employee still does not have any car benefit. This means the RTI table for period 12 still holds the negative values.

In May 2024 the payroll team need to adjust the employee's NIC figures for tax year 2023/24 via an FPSA. When they process the adjustments they receive an error.

FPSA, 'Value of benefits taxed via payroll year to date cannot have a negative value', negative value, error, PBIK, RTI table , KBA , PY-GB , United Kingdom , Problem