Kirkpatrick & Hopes - Succession Planning Accountants

Call us on: 0118 923 5800
Email us: mail@kirkpatrickandhopes.com

Real Time Information

Real Time Information (RTI) is one of the biggest changes to reporting PAYE in modern times.

From April 2013, most employers will be legally required to report PAYE in real time. This means that when or before an employee is paid the information must be submitted to HMRC. There will be no change to the way that payroll is calculated but instead of waiting until the end of the tax year and sending an Employers Annual Return form P35, the Revenue will have to be informed on or before every payday, whether weekly, fortnightly, monthly or quarterly.

Each time you make a payment to your employees, a FPS (Full Payment Submission) is made to HMRC and must include:

  • The amount paid to each employee
  • Income tax, NICs and other deduction, such as student loans
  • Details of any starters or leavers in the month
  • Anyone who has received a payment, even if they are below the LEL (lower earning level) for National Insurance. Students, temporary and casual employees must be included

The changes are considerable and, if you have not already done so,  please have a look at the HMRC website and search RTI,  or if you use payroll software your provider should be contacting you very soon, if they have not already done so.

In November, Kirkpatrick & Hopes will be starting as a pilot for RTI, together with some of our selected clients. RTI should not make any difference to you as an employer, or to your employees; it is simply a different way of reporting to HMRC.

Changes, especially such an enormous change, rarely happen easily and there will probably be a few hiccups when the majority of employers start RTI in April. If you have not already made plans for these changes, now is the time to look at what needs to be done.  If we at K&H can be of any assistance with your RTI, please contact our Payroll Manager Jackie French.

 

Leave a Reply