Real Time Information (RTI)
Below is a quick summary of the new legislation and how it will work, but for more information you can visit the HMRC website [click here]. And for your free 'Quick Guide to Real Time Information' [click here]
What is RTI
Real Time Information (RTI) is the biggest change to PAYE since its inception in 1944 and is being introduced to improve the operation of PAYE by providing HMRC with up to date information on employees. It will also help support the introduction of Universal Credits.
RTI will affect all employers who operate a UK payroll. Although the fundamentals of PAYE are unchanged, i.e. use of codes, employers deducting tax and National Insurance. RTI will change how and when the employer reports payroll information to HMRC. Employers will be required to submit information about PAYE payments throughout the year (whenever a payment is made) as part of the payroll process, rather than at the end of the year as is done now.
Most employers will be legally required to report payroll information in ‘real time’ as from April 2013, with all employers required to do so by October 2013.
How will RTI affect my payroll
RTI requires employers to tell HMRC about PAYE payments at the time they are made as part of their payroll process by electronically submitting a Full Payment Submission (FPS) every time they pay their employees. The list of information required from HMRC is extensive and includes details of employees addresses, dates of birth, national insurance number, pay, tax and NI….the list goes on in total there are over 100 values which must be submitted per employee. Also included within the required information is a cross-reference value which must be quoted within each payments bacs file, so HMRC will know that the amount that has been declared is the same amount that has been paid.
What do I need to do
Your company must ensure that your payroll software is able to process and submit RTI data - you may need to discuss this with your software provider or payroll company – sooner rather than later.
You will also need to ensure your employee’s key information, as listed below, is accurate and complete:
• Full names – both forename(s) and surname
• Current address
• Date of Birth – in dd/mm/yyyy format
• National insurance number
• Pay details (hours, rates, etc)
Without the above, a payroll submission will not be accepted
For more information on Real Time Information please visit the HMRC site here http://www.hmrc.gov.uk/rti/employerfaqs.htm
Importantly, how we can help
Using our payroll service will take away this hugely bureaucratic burden, saving businesses, like yourself, unnecessary costs on staff training and IT costs such as software upgrades, etc.
As a payroll bureau we already submit data to HMRC on behalf of our clients, and RTI submissions will become part of our standard payroll service. So, not only will we take care of your payroll for you, but we also ensure that your company is fully compliant under the new Real Time Information regulations.
It’s peace of mind for you, and your staff, knowing that your payroll will be done efficiently and on time, every time.