By Neilson Watts (Associate Product Manager, Sage One UK).
I’m sure most small businesses go through this when they start taking on employees. I need to pay them so should I do it myself or should I outsource?
With less than a month until Real Time Information (RTI) for PAYE is introduced on 6th April 2013, there’s a lot of scaremongering that running a payroll has become more complicated and that it will take you longer, therefore you need a payroll professional. To this I say poppycock!
The fundamentals of running a payroll are the same!
Yes, for most businesses in the UK you will need to start making RTI returns from April 2013 but if you take a step back, all RTI is really about is sending information to HMRC more regularly (i.e. every time you make a payment to an employee).
Under RTI you will still continue to deduct tax and national insurance as you do today. You will also continue to make the payment of any outstanding PAYE & NIC liability to HMRC by the 19th of the next calendar month (22nd if you pay electronically).
So what should I choose for my business?
For me it’s quite simple. You either tell the payroll software what you want to pay your employees, or you tell your accountant. Both will automate your payroll calculations and submissions for you. Just make sure you choose what is right for your business.
- Do it yourself with Specialist Software – If you want to save time, ensure compliance and keep control over how you pay your employees, there are some great pieces of specialist Payroll software available on the market to automate your payroll, some free and some chargeable. From 6th April you need to ensure that your Payroll software is ‘RTI-enabled’ (see Sage’s range of solutions at www.sage.co.uk/business-resources/real-time-information/rti-ready-payroll-software.html.
- Outsource – If we want to concentrate on running your day to day business tasks, simply choose to outsource your payroll needs and delegate this to a Payroll Service Provider or Accountant, just make sure you choose one that still gives you an element of control over what you want and need.
Whatever you choose for your business, ensure you get the guarantee of on-going legislative compliance and support you need.
How will Sage One Payroll help me to be ready for RTI?
Sage One Payroll is the brilliantly simple on-line payroll solution that guarantees your RTI compliance. You can run a payroll in 4 simple steps in fewer than 5 minutes from as little as £1 per employee per month.
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