PAYE Real Time Information RTI - New system
- Announced by HMRC on 4th April 2011.
- Live testing has been successfully in progress since May 2012.
- Implementation April 2013.
- Compulsory from October 2013.
- HMRC will notify any companies who are to impliment later than April 2013.
- Possibly in stages.
- We assume penalties for failing to implement.
- If we are doing your payroll we will be ready by March 2013.
- Your software supplier will hopefully be ready when the time comes.
- HMRC's Basic PAYE Tools will be ready February 2013.
Staff payments and deductions
- Monthly declaration to HMRC.
- Monthly Full Payment Submission FPS filed online.
- P45/P46 "...remove the need ... over time".
- For now employees:
- still get paper P45 part 1 and part 1 a when leaving a job.
- Still give the new employer paper P45 part 1 or
- if applicable, still complete P46 Employee without a Form P45 when starting with a new employer.
Preparing for Real Time Information RTI
- All employee records must include:
- Date of Birth.
- NI number.
- The temporary NI number beginning "TN" has not been valid since the year 2003 and will not be accepted.
- Actual PAYE/NI liability declared to HMRC on a monthly basis.
- Full Payment Submissions FPS.
- BACS payments:
- BACS Accredited Software Supplier or a BACS accredited bureau service:
- additional four characters entered into field 7 (spare field) for HMRC to identify your payment against the online submission.
- Bank software:
- No change.
- Presumably collection activity will be intensified.
- We would envisage early recourse to bailiff enforcement.
- If you have cash flow difficulties you will need to make formal arrangements for time to pay without delay.
- The existing penalties for late payment will automatically be enforced as part of the collection activity.
Talk to us about PAYE Real Time Information and your payroll generally