Payroll reporting is changing - operating PAYE in real time - Forum

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 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.

The links below give more information on how you are affected as an employer, and what you need to do.

Getting ready to operate PAYE in real time A guide for employers and pension providers on the steps to take in preparation for reporting PAYE in real time

PAYE in real time: an overview of what's changed Information for employers about reporting PAYE in real time - what's changing and why

Operating PAYE in real time Guidance for employers to help you deal with PAYE, National Insurance, expenses and benefits in real time

Improving your payroll data Information to help you make sure your payroll data is correct for reporting PAYE in real time

Starting to report PAYE in real time in 2012-13 Information about reporting in 2012-13 for large businesses, new employers and those who would like to join the RTI pilot

Payroll professionals and employers FAQs Frequently asked questions for those experienced in operating payroll, or who operate a 'non-standard' or specialist PAYE scheme

Software developers Support for software developers who are creating software products

PAYE real time news Keep up to date with the latest HMRC announcements on reporting PAYE in real time. Follow us on Twitter, YouTube and online presentations

Pilot employer updates Monthly updates giving the latest information on operating PAYE in real time for employers and agents in the pilot.

Pure coincidence, but this just arrived in my Inbox from our Accountants:

"Now that the “employer alignment submission” has been made under the new “real time information” system (RTI) all future pay runs, including the November payroll, will be under the RTI system which requires a slight change in the payroll procedures.

From now on a monthly return must be submitted to HMRC. There will be no need to do the end of year employers return (Form P35). Consequently it is important that, before we make the monthly submissions, the payroll is checked and approved.

It is important to ensure that the monthly submissions are made on or before the day on which you actually pay your employees. If the submission is made after your employees have been paid you may be liable to penalties from HMRC.

Each month we will email the payroll to you for approval. Please ensure that you check it and reply either confirming it is correct or notifying us of any changes. We will then update the payroll and make the required submission before informing you of the amount of PAYE/NIC that you are required to pay to HMRC for that month.

Under the new RTI system we will not be able to process an employee’s pay without first having all their personal details; it is therefore important that when taking on a new employee you provide us, as soon as possible, with all the information that we will need to add them to the payroll system. I am attaching a new employee form which sets out the information we will need; please complete this and return it to us for all new employees.

Please note that whilst we are getting to grips with the new RTI system there may be occasions when we need to request additional information from you."

Ah...the price of progress......:-)

Replies

PRO

Gary RK November 14, 2012 at 4:56pm

We go live with RTI next pay month as our Accountants are part of the pilot scheme.

We have had to verify all our guys details down to spellings and how the name appears on other official documents, confirmation of NI number and address.

Apart for that we see little change as our Accountants are responsible for the software, updates and resolving issues :-)

I am glad we do not pay manually or run our own payroll system....all the hassle is lifted from my shoulders enabling to spend the time on the business and/or generating revenue..yippee

One point we have been advised off is that becomes impractical to provide employee advances as under RTI you can not give an employee 'pay' in advance of 'paye' being paid.....mmhhhhh!

The current system has been so open to abuse, with unscrupulous employers not paying PAYE/NI at all or delaying until end of year when P35 gets done (HMRC have no 'visibility of PAYE/NI due - it has to believe what is told....until now....;-)

Will keep you posted on any issues we find
PRO

Gary RK November 14, 2012 at 5:27pm

Pure coincidence, but this just arrived in my Inbox from our Accountants:

"Now that the “employer alignment submission” has been made under the new “real time information” system (RTI) all future pay runs, including the November payroll, will be under the RTI system which requires a slight change in the payroll procedures.

From now on a monthly return must be submitted to HMRC. There will be no need to do the end of year employers return (Form P35). Consequently it is important that, before we make the monthly submissions, the payroll is checked and approved.

It is important to ensure that the monthly submissions are made on or before the day on which you actually pay your employees. If the submission is made after your employees have been paid you may be liable to penalties from HMRC.

Each month we will email the payroll to you for approval. Please ensure that you check it and reply either confirming it is correct or notifying us of any changes. We will then update the payroll and make the required submission before informing you of the amount of PAYE/NIC that you are required to pay to HMRC for that month.

Under the new RTI system we will not be able to process an employee’s pay without first having all their personal details; it is therefore important that when taking on a new employee you provide us, as soon as possible, with all the information that we will need to add them to the payroll system. I am attaching a new employee form which sets out the information we will need; please complete this and return it to us for all new employees.

Please note that whilst we are getting to grips with the new RTI system there may be occasions when we need to request additional information from you."

Ah...the price of progress......:-)