Payroll Reporting is Changing – Are You Ready?
HMRC is introducing a new way of reporting PAYE - called Real Time Information, or RTI. From April 2013, employers will be legally required to report PAYE in real time. This means that information about all wages and PAYE payments needs to be submitted to HMRC online each time a payment is made as part of the payroll process, rather than at the end of the year as they are now.
How will this affect you?
If you calculate your payroll manually your options are to purchase RTI enabled software, use HMRC’s free basic PAYE Tools (if you have 9 or fewer employees), or use a payroll bureau, such as ourselves to process your payroll for you.
If you currently use payroll software you need to ensure with your supplier that it is RTI compliant. If you use HMRC’s basic PAYE Tools, this will be updated for RTI in February 2013.
Every employer will need to check they have up to date, correct details for each and every one of their employees, including full name, address, date of birth and National Insurance number. Abbreviations such as ‘Stephen’ to ‘Steve’ will not be permitted and must be changed. This information is needed for anyone you pay, even casual part time staff earning below the National Insurance Lower Earnings Limit.
How can we help?
At Beeley Hawley & Co we already use software which has been RTI enabled. Our service to existing payroll clients should be seamless throughout this change, subject to information checks. If you believe your own software can cope with the change but think you may need a helping hand please feel free to call us. If you have never operated payroll software we will happily talk you through the options or alternatively discuss the possibility of using our bureau service.
A useful list of frequently asked questions has been provided by HMRC and can be accessed via the following link -
If you have any question please speak to Richard Shaw for more information.