In April 2013, how you tell HMRC about the salary payments and deductions you have made is changing. Real Time information (RTI) is a new system that is being introduced by HMRC to improve the pay as you earn (PAYE) system.
The stressful year end process of P35 and P14 submission is going away, and will be replaced with a submission each time you pay your staff.
This is called Real Time Information, or RTI, and it will mean some changes to how you process your payroll.
Why Introduce RTI?
RTI will allow HMRC to improve the accuracy of PAYE, respond faster to any errors and reduce the possibility of fraud.
How will it affect you?
Instead of sending PAYE information once a year at the yearend in April, you will need to submit information electronically to HMRC for PAYE, NIC, etc every time you pay your staff whether that’s weekly or monthly.
What doesn’t change under RTI?
PAYE stays the same – using tax codes, deducting tax and National Insurance and calculating pay all works in the same way it does now. How you tell HMRC is changing, not what you are telling them about.
Coding notices, messages from HMRC, when you pay HMRC, P60s and P11s all work in the same way they do now, as does reporting a change to HMRC (such as a change in name or address).
What do I need to do to prepare for RTI?
Before you make your first submission to HMRC, you will need to check the information you hold about your employees.
Why not download our Guide to RTI here
When will RTI come into effect?
The RTI pilot has just started http://www.hsjaccountants.co.uk/news-item/hmrcs-real-time-information-rti-pilot-launched. It will be phased in from April 2013 and will become mandatory for all employers from October 2013.
How can HSJ help you prepare for RTI?
HSJ offer a fully managed and complete payroll service that will be compliant with all RTI requirements. We can help you with:
- Starters and leavers
- Code number changes
- Customised and generic payslips
- Student loan recovery
- SMP, SPP, SSP, and SAP
- Child maintenance orders
- Pay in lieu of notice redundancy
- Advice on tax and NIC payable
- Processing payments through BACS
- Dealing with employee enquiries
- Standard payroll reports
- Production of year-end P60s
Are you worried by this additional payroll compliance? Why not get a free quote and let HSJ’s Payroll team run and manage all of your payroll compliance. Please call 0845 365 1000