12 Mar Get Ready for Huge Changes to Payroll
The HMRC are introducing the largest change since the second world war to the way in which employers report their payroll with the introduction of RTI (Real Time Information) starting on the 6th April 2013
“As an employer, each time you pay an employee, you already keep payroll information. After 6 April 2013 you will still operate PAYE in the same way but you must submit the payroll information you already keep to HMRC on or before the day you pay your employees.
You use a Full Payment Submission (FPS) to do this.
Your payroll software will generate the new reports you need and submit payroll information online. These will include details of:
the amount you paid your employee(s)
deductions, such as Income Tax and National Insurance contributions (NICs)
starter and leaver dates if applicable
You need to include the details of all employees you pay, including those who earn below the NICs Lower Earnings Limit (LEL), for example students.
You no longer submit end-of-year forms P35 and P14 and the starter and leaver process is simplified. You continue to give your employee a form P45 (employee parts) when they leave but you no longer send forms P45 (part 1) or P46 to HMRC. Instead you must report all starter and leaver information via your payroll software each time you pay someone.”
Sourced from the HMRC Website 12th March 2013
If you employ staff, regardless of your size of business, you will be required to report your staff salaries and their deductions to the HMRC in ‘real time’ on or before you pay your staff. It is essential to ensure that you have all the correct information about your staff such as their correct date of birth and national insurance number as any deviations will cause huge issues after the introduction of RTi.
Hughes Accountancy has fully compliant RTI payroll software and is happy to advise on any aspect of your payroll. Please leave your queries and contact details on our contact us page and we will reply with a no obligation response.