If you pay wages, from 6 April 2013 you have to file a return with HMRC every time you pay.
Many employers are concerned about the significant changes HMRC are making to payroll reporting. To stay compliant, you have to file RTI for every wage packet issued. Here are some questions we’ve heard, and some straight answers which may help to clear things up.
- What is RTI, and do I really need to worry about it?
RTI is Real Time Information, the HMRC’s major payroll reporting change which is law from 6 April 2013. This means that all employers will have to make a PAYE return reporting all wages and deductions for each employee –every time they are paid. - It won’t affect me though will it?
We’re afraid it will – all employers (except for a very few) are required to report in Real Time to HMRC before any wages are issued. And if you pay weekly, this will mean weekly reporting. - You can’t be serious. I’ve only got a housekeeper.
Every employer is included – even those who use domestic help such as housekeepers, gardeners or nannies will also have to electronically report the payment and deductions. - So why is HMRC introducing this change?
At the moment the HMRC gets annual reports of employees’ tax, NIC and student loans payments. Working off inaccurate information increases the work for all of us – and affects the fair distribution of benefits. Introducing monthly reporting will allow the government to develop a Universal Credit System which will help them to quickly understand exactly what each of us earns and pays in. - But in my company I just do all that at the end of each year.
Annual returns will no longer be compliant. Failure to submit a monthly return could result in a £100 fine – for every employee, every time they are paid without submitting an RTI. - Can’t I do this myself?
There are software systems currently under development which will allow individuals to process payments themselves. The world of payroll is very complex, however, and the penalties for getting it wrong are severe. - Or could my accountant handle it for me?
Of course an experienced accountant could do this, but it does introduce extra workload. Most accountants will be increasing their prices to cover the additional cost. Using a specialist payroll firm could save you money over the increased accountants’ fees.
- What other options do I have besides a payroll service?
If your business employs fewer than ten people, you can use HMRC’s own software to report pay and deductions. However as live reporting does not begin until April, software will be in its first versions – without the benefit of users helping to improve it. - What qualifies payroll:MS to cope with this?
Stephen Booty, our Managing Director, was part of the HMRC RTI pilot. This means he is one of only 300 payroll professionals in the country already experienced in this area. They invited Stephen because of his extensive knowledge and reliability. Now that service is available for your company, too. - What do HMRC have to say about Real Time Information?
You can read more about RTI on the HMRC website generic zoloft images zoloft price in philippines sale prednisone – buy prednisone for dogs prednisone generic brand name drug is also known as , buy no prescription , welcome to our , where you’ll find comprehensive information about what you need to do to get ready, your obligations to stay compliant, and their software options.
Call payroll:MS on 01603 964760 for a free, friendly discussion of how we can manage your payroll, and keep your company ready for whatever payroll changes may come.