Get ready for RTI ASAP!
Back in March we highlighted the planned introduction of RTI (Real Time Information) for PAYE. Have you acted yet?
RTI is being introduced by HMRC to simplify PAYE, reduce fraud and help with the accuracy of Universal Credit payments. For business it essentially means that payroll related information will have to be electronically collected and passed to HMRC on each payroll run.
Preparations are moving forwards at a pace and start-up businesses will have adopt RTI practices from November 2012. The majority of established businesses will need to report PAYE information in real time by April 2013 (just over 6 months away).
Electronic submission of information
Probably the key requirement of RTI is that your information is submitted electronically using payroll software. If you don’t currently use payroll software then there a number of options for you to take including: commercial packages (such as Sage), payroll bureaux (where suppliers offer a complete payroll service) or HMRC’s own Basic PAYE Tools. If you do use payroll software or a bureau service then it is important to check that they can meet HMRC’s data requirements.
Even if your system or bureau service is compatible with the new regime we strongly recommend that you undertake a full audit of all of the staff information that you hold such as date of birth or National Insurance number. This is because mismatches between your information and HMRC’s could result in the wrong tax payments or compliance checks.
The need to provide and maintain accurate data means that it is in your interests to look at your business processes to make sure that you deal with starters, leavers and end of year reporting correctly.
How we can help
If you are concerned about any aspect of RTI then Lewis Smith & Co. has a number of ways to help you.
We run a payroll bureau which is fully compliant with HMRC’s requirements and could be the right solution if you want to take away the hassle of administering your own system. If you want your own package then we are agents for both Sage and Xero and we could get you up and running very quickly. Alternatively if you just need somebody to discuss what RTI means to you and the way you operate then we have the expertise to provide sound advice.
To find out more simply call Lewis Smith & Co. on 01384 235549 or email us on info@lewissmith.com to set up a no-obligation meeting today.
Lewis Smith & Co. – Thinking about moving accountants? Check us out first
