From 6th April 2013 most employers will be required to go online and provide HMRC with data for every employee each time they are paid. The transfer of data will be part of the payroll process and the information will include full names, dates of birth, hours worked, payments made and details of deductions made.
As it will not be possible to file the payroll without a starter’s date of birth, gender, address and NI number and this information will be required before payments can be made.
Employees who previously have not been included on the PAYE End of Year records because they were paid under the Lower Earnings Limit will have to be put on to the payroll under RTI.
Small employers with nine or fewer employees will be able to use the free HMRC Basic PAYE Tools package to calculate the PAYE and file the information each week or month. Alternatively, commercial payroll software or a payroll bureau can be used. We are able to provide a full payroll service, if you would like further information please speak to your usual Alexander & Co contact.
HMRC will be informing employers when they are required to start the new process. It is expected that all employers will be using the RTI service by October 2013.
Before RTI starts employers will have to verify that they are providing HMRC with the correct information for each employee and that it matches the HMRC records. This means that the employee records should be checked to ensure the correct National Insurance number and full name (not abbreviated or initials) are shown together with the date of birth, gender and full address. This information should then be given to your payroll provider together with details of the weekly hours worked by each employee.
Once RTI is up and running HMRC will know what PAYE payments are due each month and will be in a position to issue PAYE penalty notices for late monthly payments as soon as the penalty is incurred.
If you have any questions about RTI, please ring Jenny or Anne on 0161 832 4841.