Businesses urged to ensure they are RTI ready

POSTED: 26th February 2013
IN: Business news

HM Revenue and Customs (HMRC) has issued a statement to UK businesses to ensure they are ready for the roll out of Real Time Information (RTI).

The tax office has said those yet to prepare for the new pay-as-you-earn (PAYE) reporting system need to start today by contacting their payroll software provider to make sure they have the right technology for implementing RTI.

According to HMRC, most companies will complete the first “real time” return on the first employee payday on or after April 6th. 

Payroll software will be used to calculate PAYE and send the information to the tax office as part of a more regular payroll operation.

Rather than sending in P14 and P35 forms to the tax office at the end of the year, companies will need to send a Full Payment Submission (FPS) to HMRC on or before they pay employees.

Businesses also need to remember that FPS is not available through HMRC online, so they will have to use RTI-enabled software to submit the information.

Additionally, firms will be required to send an Employment Payment Summary each month, which details any changes to the amount they owe, as well as an Earlier Year Update to correct errors or make adjustments to earlier years.  

HMRC told business there is a range of commercial payroll software products available, including free and low cost options, to ensure companies without a payroll service provider, or the appropriate software, can comply.

For businesses with nine or fewer employees, there is also free basic software and basic PAYE tools available from the tax office, which will help to keep the cost of the changeover to a minimum.

The tax office concluded: “We want to help and support businesses to make the changes so we will therefore not be imposing any penalties for in-year late reporting until 2014.”

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