Real Time Information (RTI) went live from 6 April 2013. This is the biggest change to the HMRC PAYE/NI systems since it's introduction in 1944 and affects ALL employers.
What is RTI?
From 6 April 2013 all employers and pension providers report payroll information to HMRC on or before every payday – instead of after the end of the tax year, as was the practice up to the end of 2012/13. These reports are made online using payroll software – and you no longer have to separately report new starters and leavers, or send in certain end of year forms.
How this affects you:
RTI will affect every employer who pays an employee.
Some questions to ask yourself are:-
Payroll software – do you have RTI compliant software and the relevant support packages to run RTI?
If you run a manual payroll and submit returns online through the Government Gateway are you aware you will no longer be able to submit through the Gateway?
Do you know that information you supply to HMRC via RTI could affect any welfare benefits your employee receives from 1 October 2013 onwards when Universal Credit is introduced?
Have you registered for a PAYE scheme with HMRC even if all your employees are paid below the lower earnings limit? There will be a requirement for all employers to register for PAYE if they pay an employee, irrespective of the amount paid.
Do you have the time to cope with the extra pressures RTI will bring?
Do you know you are submitting the correct information, even the best software can run errors?
Can you answer your employee’s queries on RTI and Universal Credit?
Even the most experienced payroller will tell you that RTI and Universal Credit will be the biggest headache to ever hit employers and employees alike. Just pressing a few buttons on payroll software will not be sufficient!
All staff at HCA Accountants are fully trained in RTI and understand the impact it will have on employees and employers alike. We have the knowledge and experience to know if the information is correct, what payroll information has to be submitted and in what format.