Real Time Information is the biggest change introduced by HMRC since the introduction of PAYE, and it’s going live from April 2013.  Is your payroll ready for RTI?

Link to following:

What is Real Time Information (RTI)?

Real Time information is being introduced to improve the operation of PAYE.  It is a new system for reporting pay, tax, National Insurance, statutory payments and other details to HMRC.  At present, employers are required to submit such details to HMRC at the end for the Tax Year via P35/P14 Returns.  However, under the new system of RTI, this information will be submitted to HMRC every time a payment is made to the employee.

 

What can I do to  start getting ready for RTI now?

Most employers will be legally required to report payroll information in real time from April 2013, with all employers doing so before October 2013.  HMRC will tell you when your business needs to make this move.  In the mean time, it would be wise to start making sure that all payroll information held is complete and correct to make sure are ready for the change.  HMRC will require complete details on each submission.  It is important that the following required information is complete and up to date:

Employee Details                    Company Details

– Surname                                – District Number

– Forename                               – PAYE Reference

– Date of Birth                           – PAYE Accounts Office Reference (can be found on your paying in book)

– National Insurance Number       

– Address

To make sure you have all the required information when creating a new employee record, we would recommend creating a new starter form.  This is a form which can be completed by the employee (or employer) which contains all the statutory information needed by your business. Click Here to download an example form which you can use.

 

Will my payroll software be ready for this change?

If you use payroll software to operate your weekly or monthly payroll, it will need updating so that it can process and submit RTI data – you may need to discuss this with your software provider.  If you are currently not using any payroll software, you will need to plan ahead now so that your business will be able to submit RTI data electronically to HMRC when you are required to do so.

Are you a small employer with nine of fewer employees?

If so, some commercial software providers provide free products for employers, and you can also use the HMRC’s free Basic PAYE Tools.  HMRC will have a new version of PAYE Tools available to download once you are invited to operate PAYE in real time.

If there are any areas of RTI that concern you, please feel free to contact Rachel Radford.

 

You might also like to read our post on Child Benefit.

Cookie Control

Cookie control

We have placed cookies on your device to help make this website better.

I'm fine with this

We have placed cookies on your device to help make this website better.

You can use this tool to change your cookie settings. Otherwise, we’ll assume you’re OK to continue.

Some of the cookies we use are essential for the site to work.

We also use some non-essential cookies to collect information for making reports and to help us improve the site. The cookies collect information in an anonymous form.

To control third party cookies, you can also adjust your browser settings.

I'm fine with this
(One cookie will be set to store your preference)
(Ticking this sets a cookie to hide this popup if you then hit close. This will not store any personal information)
Information and Settings Cookie policy