UK Payroll – RTI is on the way!
The move to reporting PAYE information online to HMRC in REAL TIME is mandatory. Most employers will have to move to operating RTI (Real Time Information) from April 2013.
From October 2012, HMRC will write to all employers telling them what they need to do to get ready for RTI, and in February 2013 they will confirm the date from which each employer should start reporting their PAYE information in real time.
How RTI will be implemented: From their given date, all employers must report payroll information to HMRC on or before every payday instead of after the end of the tax year.
These reports will be made online using payroll software, and must include all employees, so there are some things you must now consider:
Does your payroll software allow you to submit PAYE information in real time? If not, you must look at updating your payroll software as soon as possible or change to a software package that can. Alternatively you may want to consider getting a payroll bureau to do the reporting for you.
Is your employee data complete and correct? It is essential that you have accurate employee data, so before starting to use RTI you must check that the data you hold in your payroll records is complete and accurate: Full name, date of birth, National Insurance number, gender and address.
Do you pay your employees by BACS? Employers making payments to their employees by BACS, using their own service user number, will need to include a cross-reference in the RTI data submission and their BACS payment instruction. To keep up to date on any RTI developments go to www.hmrc.gov.uk/rti
If in doubt about any aspect of RTI you can contact our Payroll Team who will be happy to explain the complexities of the RTI to you. Using the services of Paycheck Plus for your UK Payroll needs leave you free to conentrate on your business while we look after your payroll. For further details of our UK Payroll service contact our Payroll Team today.