I am currently going through an HMRC investigation for a client who was questioned about when payroll records were submitted to HMRC by the client. Unfortunately, several pay submissions were made due to errors in calculations which were subsequently corrected through reverting payruns and resubmitting them.
I have been told by Xero that "Once a pay run is reverted, the associated submission for that pay run is deleted from Xero permanently." This means that there are no records to prove that payruns are submitted on time to HMRC and then corrected at a later date. This is an unacceptable audit trail in Xero as it exposes customers to potential penalties from HMRC who, apparently, also do not keep such records. Come on Xero - audit trails are a simple requirement of accountancy packages. Surely, you do not want your clients to be exposed to potential penalties through no fault of their own?
I am currently going through an HMRC investigation for a client who was questioned about when payroll records were submitted to HMRC by the client. Unfortunately, several pay submissions were made due to errors in calculations which were subsequently corrected through reverting payruns and resubmitting them.
I have been told by Xero that "Once a pay run is reverted, the associated submission for that pay run is deleted from Xero permanently." This means that there are no records to prove that payruns are submitted on time to HMRC and then corrected at a later date. This is an unacceptable audit trail in Xero as it exposes customers to potential penalties from HMRC who, apparently, also do not keep such records. Come on Xero - audit trails are a simple requirement of accountancy packages. Surely, you do not want your clients to be exposed to potential penalties through no fault of their own?