RTI - Essential to be prepared - countdown begins
10th January 2013
Real Time Information, or RTI, is one of the biggest changes payroll legislation has seen. It will affect the way we submit PAYE information to HMRC.
RTI is aimed at improving the operation of PAYE. Currently, if you are an employer operating PAYE, you submit an end of year return to HMRC. Under RTI, information about PAYE, NIC and Student Loans will be submitted throughout the year as part of the payroll process rather than at the end of the year. Every time you process your payroll, your software will collate the necessary information and send it to HMRC.
Apart from a few specified exceptions, it is a legal requirement to report payroll information electronically on or before any day when you pay someone. Regular reporting under RTI should reduce end of year pressures and be more efficient. However, the risks of getting it wrong may increase.
Penalties will apply for the late filing of RTI submissions during the year and guidance is available from HMRC.
Most employers will be legally required to use RTI from April 2013, and all employers will be required to do so by October 2013. HMRC will inform you when your business needs to make the move, therefore, it is crucial to be prepared.
With less than 3 months remaining it is essential employers start to prepare for RTI now. The success of RTI and whether employers experience problems will largely depend on the quality of information submitted.
Payroll software is a must, either in the form of a computerised package for processing payroll in-house or by outsourcing to a payroll provider.
By outsourcing to a payroll provider, employers do not need the knowledge to handle this complex area.
Benefits of outsourcing are:-
- Staff paid on time with appropriate deductions made
- HMRC compliance ensured
- No costs of payroll software
- Significantly lower risk of HMRC penalties
Ask yourself - Do you have time to deal with your regular payroll? Do you understand the implications of maintaining your payroll records?
As your accountant we are keen to ensure that you are compliant well in advance of the mandatory deadline. We are here to help. Whether you require our full payroll service or would like us to provide information on request, we can meet your needs.
For further advice or to arrange a free meeting please contact Lynne Vaughan of Amber Accounting on 01382 312140 or firstname.lastname@example.org.