From 6 April 2013, employers will have to report payroll information to HMRC in real time every time payroll is run. This will replace the current system of reporting at year-end.
This new system is known as Real Time Information (RTI).
What is RTI?
RTI is a new system for reporting tax, National Insurance Contributions and other details to HMRC. As an employer, you are responsible for all tax deductions and calculations but
instead of submitting this data once a year to HMRC, you will be required to return year to date figures at the same time as payment is made to your employees.
Will I be affected by RTI?
All companies (with a few exceptions) with up to 5,000 employees will need to start making RTI submissions from 6 April 2013. Larger employers have until October 2013 to comply with the new rules.
Why is RTI being put in place?
It is being introduced to keep pace with modern working patterns and to provide HMRC with more up to date information ensuring deductions for tax, National Insurance and student loans are more accurate.
What do I need to do?
The most important step is to make sure your payroll provider can comply with RTI as this will most likely affect you from April 2013.
Top 5 Tips
- Ensure all your employee information (name, address, gender, date of birth, national insurance number…) as well as your PAYE reference and Accounts Office reference are correct
- No more annual payroll returns. The system of reporting information by tax year-end will stop.
- RTI means less paperwork when you have joiners & leavers.
- You will have to submit a Full Payment Submission on or before each payday. Larger employers will have to submit an Employee Alignment Submission.
- Harper Morris can help with fully compliant RTI payroll services tailored to your needs.