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Don't let RTI worries get you down!

14th January 2013 by Heather Nunn

If you don't have an automated payroll system, consider using us as your payroll agent?  paying your staff just gets easier!

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Outsourcing your payroll might cost less than you think

4th November 2012 by Heather Nunn

Worried about what you need to do under RT!?  Do you know how little it might cost to outsource your payroll?  Just take a look at http://www.hnbusiness.co.uk/payroll.php

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Employers PAYE Update - HMRC Real Time Information (RTI)

9th October 2012 by Heather Nunn

From April 2013 most employers will have to start reporting payroll information to HM Revenue & Customs (HMRC) on or before every payday and all employers will be required to do so by October 2013.  It is the biggest change to PAYE in sixty years and is mandatory. 

Under real time reporting, employers and pension providers – or agents, payroll bureaux and other intermediaries acting on their behalf – will send HMRC information about tax, National Insurance Contributions (NICs), student loans and other deductions each time they pay their employees. HMRC hope this will enable them to keep more accurate records so that more people will pay the correct tax.

What can I expect from HMRC?

October 2012   - a letter to tell you what you need to do to get ready.

February 2013  - the date you should start reporting PAYE information in real time.

What if I currently use payroll software?

If you currently use payroll software you need to ensure it is the latest version and can report your payroll information electronically using the internet to communicate with the Government Gateway.  If your software cannot be updated you will need to either purchase new payroll software or consider using a third party payroll agent, accountant or bureau to run your payroll for you. There are some free products available; such as HMRC’s Basic PAYE Tools, available for employers who have nine or fewer employees only. More information about this and other free payroll software at www.hmrc.gov.uk/paye/intro/payroll-system.htm

What if I don’t use payroll software?

If you don’t use software at the moment you need to get software which is capable of sending PAYE information in real time. You should do this as soon as possible. Alternatively you might want to think about using a third party such as an agent, accountant or bureau to do the reporting for you.  PAYE information must be sent electronically – it can’t be done via email or by filling in a form on a web page. Payroll software that can send your PAYE reports to HMRC directly via an internet connection must be used.

What are the changes I will have to make?

*  You will need to include information in your RTI submissions about all employees

*  You will no longer submit end-of-year Employer Annual Return forms P35 and P14 (after the year end April 2013), and you won’t need to send forms P45 and P46 to HMRC; instead you will include this information with the information reported in real time

*  Employers making payments to their employees by BACS, using their own service user number, will need to include a cross-reference in the RTI data submission and their BACS  payment instruction

What will not change?

*  You will still issue leaver employees with a P45, but your information to HMRC will take place under RTI

*  You will still issue employees with an annual P60 - certificates of tax and NICs paid

*  You will still need to send annual P11D and P9Ds - expenses and benefits returns

*  The dates by which you must pay HMRC stay the same.

Payroll Alignment Process

HMRC will carry out this process for all PAYE schemes as the first step of moving to reporting PAYE information in real time. The information that they hold about your employees must match what’s in your payroll records. To check this, in the tax year that you move to real time reporting, you will need to supply to HMRC an extract of your records showing all individuals employed since the start of the tax year. This will include details of those who haven’t been paid and those who have left your employment.  HMRC will compare this extract to the records they hold and, where necessary, update their records to match the information supplied by you.

If you need help?

We will be pleased to help you with any aspect of the move to real time information.  Just contact us: 01760 440837, 07979 264047, or heather@hnbusiness.co.uk

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