HMRC’s RTI is on the way…

calc
Real Time Information (RTI) is a new way of submitting payroll data to the Tax Office.
Instead of sending updated WORKFORCEPAYE information to HMRC at the end of the tax year, employers must submit their payroll data online every time their employees are paid. HMRC say that this will make the PAYE process simpler for employers by removing the need for year end returns (forms P35 and P14),and by reducing tax credit error and fraud, whilst also simplifying the employee joining/leaving processes – but in reality, the overarching remit of the scheme is essentially to give HMRC the opportunity to clamp down on businesses that fail to make PAYE payments on time.

All SME employers will be expected to commence RTI to submit payroll data from April 2013, unless they have agreed an alternative start date with HMRC. Otherwise, once you receive an ‘invitation’ to use RTI, you must join the system from the date directed. If you run a computerised payroll system, your payroll software should be updated to manage this change – but do check with your provider, just to be sure. If your software is not going to be upgraded, or you run a manual payroll, you can either use the free software provided by HMRC, or of course, we can process your payroll from just £25/month for up to 5 employees.

RTI submissions will require the collation of some data which is not currently required for PAYE – so you may want to consider gathering any missing records in advance to make sure you’re ready to go next Spring:

·        Hours worked per week for each employee (based on one of four bands);
·        Details of those earning less than the lower earnings limit (£107 per week);
·        Details of those employees paid irregularly;
·        Date of birth, gender, full name and address for each employee;
·        Passport numbers for employees who do not have NI numbers.
the web designer group uk
the web designer group logo

Close Button

Web Site Designed by

The Web Designer Group