Post by Neilson Watts, our resident payroll guru.
If you are a small business and employ people, then this has to be THE MOST IMPORTANT read for your business!
There’s something coming and most small businesses won’t even realise it before it’s too late!! “Well, what is it?” I hear you ask. Well, it’s PAYE Real Time Information, the biggest change to the PAYE system since 1944 and it affects every business in the UK that pays their employees through the PAYE system.
What is PAYE Real Time Information?
Real Time Information (or RTI for short) is an HMRC initiative to improve the accuracy of PAYE, reducing the need to send out corrections for overpayment or underpayment, and reducingthe possibility of fraud.
Under RTI employers will be required to submit information electronically via the internet to HMRC on or before they pay their employees instead of just once a year… and it is important to note this includes all temporary and casual workers and employees paid below the National Insurance Limit. Watch our video.
When will your business need to be ready for RTI?
Quite simply, any small business needs to be ready and submitting RTI returns from April 2013, and its only 2 months away!!
How will RTI impact your business?
Fundamentally the process of paying your employees remains pretty much the same as it is today the only difference is now you must submit information electronically to HMRC every time you run a payroll to pay your employees.
The great news under RTI is that you will no longer be required to submit the complex and time consuming P35 and P14 payroll year end returns. The process of taking on new employees and leavers is also streamlined, where you are no longer required to submit a P46 or P45 to HMRC, you should still however continue to provide any leavers with a paper copy of their P45 and accept a P45 from a new starter.
You will need to submit information electronically to HMRC for PAYE, NIC and student loans every time you pay your employees.
How should I best prepare my business for RTI?
Don’t leave it to the last minute. Familiarise yourself with RTI and don’t be afraid to ask your payroll provider how they are going to help ensure your compliance with RTI.
When will HMRC be telling me about RTI?
Keep an eye on your post…..you should be expecting an imminent communication in February directly from HMRC to let you know about RTI and how to prepare your business.
How will Sage One Payroll help me to be ready for RTI?
We are confident that Sage One Payroll will guarantee you a simple and straight forward RTI Compliance experience – Try it now free for 30 days – http://uk.sageone.com/payroll you will love Sage One Payroll…..I do ♥