Real Time Information (PAYE)

Under the new RTI payroll system employers will send information about the tax and national insurance that they deduct from employees’ wages to HMRC at the time when they are deducted – rather than at the end

of the tax year in April-May, as happens now. So instead of submitting this data once a year to HMRC, online submissions will be made weekly, fortnightly, four weekly or monthly, depending on the frequency at which their employees are paid. Employers will still calculate Tax & NIC (using their payroll software) in the normal way.
All accredited Payroll software is being updated with all of the relevant functions and features to allow you to send your RTI returns efficiently and on time. These features will be added as part of the normal updating process, so there will be no additional software costs in order for you to be able to operate RTI.

Presently the penalties are unknown for non-compliance.The new Universal Credit is due for introduction next year for Tax Credits / Welfare Payments/ Housing Benefits etc. This system is supposed to complement the implementation of the latter.The payroll department of all businesses will be rather busy places in 2013. More HMRC admin then…lets see how it all goes.

Basically HMRC are passing on all the compliance and admin issues to us employers. Which means they will have access to all the businesses payroll details to audit ‘in real time’ and then question immediately. Employers will certify the figures monthly rather than yearly as per Form P35. Big Brother? No get out for the self employed either if they are subject to the new Universal Credit. Income & expense claims for Tax Credits have to be in monthly too. That’s flagged up already! CIS which is part of PAYE will largely remain unchanged. But that’s a mess anyway!

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