Using RTI payroll software to avoid penalties

Real Time Information (RTI) has been in place since April 2013 but the final penalties will only come into force for businesses with 50 employees or fewer in March and April 2015.

To avoid any fines, you’ll need to ensure you’re filing the right information and making payments on time. But don’t worry, Sage One can help.

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What RTI penalties affect small businesses?

There are a number of RTI penalties that small businesses need to be aware of:

  • Penalties for inaccurate returns

These apply to in-year returns and the final Full Payment Submissions (FPS).

  • Late payment penalties

Employers need to ensure they’re paying PAYE and NI on time, whether this is monthly or quarterly. From April 2015, HMRC will apply automatic in-year penalties for late payments.

  • Penalties for being late sending Full Payment Submissions (FPS)

Employers must submit an FPS on or before the date they pay an employee. Failure to do so can result in fines.

How RTI payroll software can help you to avoid fines

There are a number of steps that you can take as an employer to avoid fines. Sage One Payroll software is designed to make these easy, so you can be sure that you’re managing RTI and avoiding any unnecessary costs.

Send the right information to HMRC

As an employer you’re responsible for keeping accurate records about your employees and your payroll. You’ll need to ensure all the data is up to date and that you submit the right information to HMRC. Any mistakes can lead to penalties. Having trusted payroll software reduces the risks of any errors.

Sage One Payroll makes it easy to keep the right data by alerting you to missing information, automatically calculating your PAYE and NI and ensuring your RTI records are well maintained. The software will also automatically create your FPS and EPS, so you don’t need to worry about that either.

96% of Sage One Payroll users described making RTI submissions to HMRC via our software as ‘really easy’.

Make submissions on time

Sending your FPS and EPS submissions on time is essential. You’ll need to send your FPS on or before the day you make payment to your employees. An EPS should be sent if you don’t pay any employees in the period or you need to reclaim statutory payments, Construction Industry Scheme (CIS) deductions or claim NIC Holidays for previous tax years.

We know small businesses often don’t have loads of time to manage their payroll. That’s why Sage One Payroll makes it easy. You can pay 5 employees in 5 minutes or less and RTI submissions to HMRC are made with a single click. That way, you can easily fit your payroll into your schedule, ensuring that you never miss a submission.

“You would think complying with the new RTI requirements would be a lot of hassle. However, in Sage One Payroll you simply run your pay run and then press complete and it sorts out all the RTI submissions to HMRC behind the scenes.”
Jon Petrie

Pay HMRC on time

You must ensure all payments to HMRC are made on time. The late payment penalties can add up quickly, so you need to ensure you’re paying the right amount at the right time. While Sage One Payroll can’t make the payments for you, it does give you information about the amount you owe. This makes it easier for you to manage the payments and ensure you avoid late payment penalties.

Understand your liability

Remember, if you outsource your payroll to your accountant, bookkeeper or a payroll bureau, it’s still your business which is liable for any fines or penalties. This means you’ll need to spend time checking that your provider has submitted the right data at the right time. Given the impact that any penalties could have on your business, you may actually find it easier to manage your payroll yourself. Sage One Payroll makes this easy.

Rather than spending time collating information and passing on timesheets, you can simply manage it yourself with an easy four-stage process. The software makes all the calculations for you and it’s simple to customise it to your needs.

And it costs from £3.33 a month for up to 5 employees – that’s just 66p per employee.

“Sage One Payroll was so easy to set up and get started and takes no time to run each month, saving me money on paying a bureau but not taking up too much of my time.”
Helen Barden