Error 1046: Authentication Error

IRIS Keytime Payroll

Sender ID / Password are incorrect for the Tax District Number and Reference you are submitting.

An Error 1046 is an indication that the HMRC Government Gateway is experiencing issues. If you have worked through the troubleshooting, wait a few hours and try again. If you are still receiving the error, wait another few hours.
If support are unable to provide more information, than go through the troubleshooting below.

Incorrect credentials

When filing online using your IRIS Payroll product your Gateway User ID, Password and PAYE-Reference (tax district and reference number) are checked against the records held on the HMRC systems. If one or more of these do not match you receive an Error 1046.

Incorrect User ID & Password

This is the most common reason for receiving an Error 1046. A good way to check the user ID and password is to go to the HMRC login website and try to log in by copying and pasting the User ID and password.

When entering the password into the HMRC website, only the first 12 digits are accepted. When entering them into the software, it recognises all digits so would deem anything after the first 12 as being incorrect causing the Error 1046. If your password is longer than 12 digits, only use the first 12 within the payroll software.

If you are unable to log in to the online services website please call the HMRC Online Services Helpdesk on 0300 200 3600.

A security feature employed by HMRC means if you enter the wrong User ID or password three times or more when trying to log on to the HMRC website, your account will be locked and you won't be able to use HMRC Online Services for the next two hours. You will be able to try again after the 2 hour period has expired.

Incorrect PAYE-Reference (If you are filing for your own company)

  1. Log on to the HMRC website using your User ID and Password.

  2. Select Your Services.

  3. Check the companies Tax District and Reference are registered and activated for you to file RTI submissions online.

  4. The Tax District field should contain 3 numbers (example : 123). The Tax Reference field should contain the other details (example : AB45678). You should not enter a forward slash in to the fields. This will cause the submission to fail.

Incorrect District Name

We have had instances of the submission failing due to an incorrect tax district name.

Check the district name with HMRC to make sure the correct details are used in your IRIS Payroll product.

Not Registered / activated for the service

Not registered for the service

If PAYE for Employers is not listed under Your Services you need to register for this before you are able to file online.

Not activated for the service

After registering for a service you should receive an activation code. The activation code is issued within seven days - use it once then throw it away. It expires if you don't use it within 28 days of the date on the letter, you have to request a new one.

You arenot able to file online unless you have registered for PAYE for Employers and activated this service.

Agent not registered the PAYE reference of the company

For an agent to submit RTI returns and receive PAYE message from HMRC on behalf of a client the agent needs to be authorised by either:

• Completing paper form FBI 2- this only gives you authority to act for your clients online

• Online authorisation process - which allows HMRC to deal with you online, by phone or in writing about each of your clients’ PAYE or CISmatters

To submit an online authorisation request for your client you’ll need:

• To have registered for HMRC Online Services and enrolled for the PAYE/CIS for Agents service

• Your client’s employer PAYE reference and Accounts Office reference

• The authorisation code HMRC will send to your client by post - the code with ‘PE’ for PAYE and ‘CS’ for CIS

The authorisation code can take up to 7 days to arrive. You need to enter the code before the client appears on your client list, so ideally you need to do this well in advance of a filing deadline. You must enter the code within 30 days from the date on the letter, otherwise it will expire.

Auto complete active on web browser

This advice has been supplied to us from the HMRC Online Service Helpdesk. If you are unsure on how to change the settings please contact your IT support.

If you have completed the previous steps but are still receiving the 1046 Error then you can try and disable "auto complete" on your internet web browser. Information entered when trying to log into the Government gateway or HMRC Online Services website may be stopping your IRIS Payroll product from authenticating successfully.