Posts Tagged ‘RTI’

RTI payment dates

Posted on: July 4th, 2013 by Mark Jones No Comments

HMRC issues a reminder that the full amount for each month must be paid on time

The due dates for paying PAYE are not changed by the new Real Time Information (RTI) rules.

Cheque payments need to be received by the 19th of the month following the end of the tax month of deduction, and cleared electronic payments by the 22nd.

Payment in full is the:

  • total amount shown on the Full Payment Submission(s) (FPS) for a tax month, including any corrections or adjustments submitted on or before the 19th of the following month
  • less the amount shown on any Employer Payment Summary (EPS), also submitted on or before the 19th of the following month.

Don’t forget that you can submit more than one FPS for a month and can continue to do so until 19th of the following month. If however you submit more than one EPS for a payroll for a month, later submissions overwrite earlier submissions for that month.

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Real Time Information and paying HMRC

Posted on: July 4th, 2013 by Mark Jones No Comments

Due dates for payment remain unchanged.

Cheque payments need to be received by the 19th of the month following the end of the tax month of deduction, and cleared electronic payments by the 22nd. This means if you pay monthly, HMRC should receive the PAYE you deducted between 6 June and 5 July 2013 by 19 or 22 July 2013 depending on your method of payment.

Payment in full is the:

– total amount shown on your Full Payment Submission(s) (FPS) for a tax month, including any corrections or adjustments submitted on or before the 19th of the following month

– less the amount shown on any Employer Payment Summary (EPS), also submitted on or before the 19th of the following month.

RTI – HMRC writes to employers not yet reporting

Posted on: July 3rd, 2013 by Mark Jones No Comments

Real Time Information (RTI) for payroll became compulsory for most employers from April 2013. HMRC is now starting to write to employers who have not yet started reporting in real time.

The letter sets out the changes and explains to employers that they have missed a PAYE reporting deadline. Whether or not they have actually missed a deadline will depend on whether they have paid anyone so far in the current tax year, and so the letter also reminds employers what they need to do in such cases or if their scheme has ceased operating. It is worth remembering that late filing penalties will not apply until 2014/15.

For help on getting started, go to hmrc.gov.uk/actnow

Real TIme Information (RTI) and annual PAYE schemes

Posted on: July 1st, 2013 by Mark Jones No Comments

If you send too many Full Payment Submissions, you may jeopardise your scheme’s annual status

If you have a PAYE scheme that pays staff/directors on an annual basis, you must only send a Full Payment Submission (FPS) for the month in which you make the annual payment. You can send as many FPSs as necessary as long as all the payment dates are within the same tax month.

If you have no return to make in the month you would normally make the annual payment, you should instead send an Employer Payment Summary (EPS) indicating no payments have been made during the period. If you send an FPS for a month, other than the agreed payment month, HMRC will change the payment month on its systems which could cause your scheme to stop being treated as ‘annual’.

HMRC has advised that it has received a number of FPSs from existing annual schemes for months in which they do not make their annual payment.

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RTI rules eased for SMEs

Posted on: June 28th, 2013 by Mark Jones No Comments

The shifting of the PAYE system to Real Time Information (RTI) is well underway, with nearly 1.4 million employers now reporting their employee PAYE information to HMRC before, or on, the date that payments are made. This translates to 83 per cent of small and medium sized enterprises (SMEs).

However, SMEs have been granted some leniency by HMRC as they make the switch to RTI. Employers with fewer than 50 employees were told in March that PAYE information could be sent to HMRC by the date of their regular payroll run – provided it is no later than the fifth of the month.

This relaxation particularly benefits businesses that pay their staff on a weekly basis, allowing them to report PAYE once a month rather than on every payday, and giving them extra time to adjust to the new requirements.

This temporary relaxation of RTI reporting rules – originally due to end on 5 October 2013 – has now been extended until April 2014. The extended deadline will avoid any confusion that may have been caused by changing reporting systems midway through the tax year.

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RTI – relaxation of reporting arrangements for small businesses

Posted on: March 22nd, 2013 by Mark Jones No Comments

HMRC has recently published details of transitional arrangements to allow a relaxation of reporting arrangements for small businesses (those with fewer than 50 employees) until 5 October 2013

HM Revenue & Customs (HMRC) recognise that some small employers who pay employees weekly, or more frequently, but only process their payroll monthly may need longer to adapt to reporting PAYE information in real time. HMRC have therefore agreed a relaxation of reporting arrangements for small businesses.

Until 5 October 2013, employers with fewer than 50 employees, who find it difficult to report every payment to employees at the time of payment, may send information to HMRC by the date of their regular payroll run but no later than the end of the tax month (5th).

HMRC will continue to work with employer representatives during the summer to assess and understand the impact of RTI on the smallest businesses and consider whether they can make improvements to real time reporting which will address their concerns without compromising the benefits of RTI or the success of the Department for Work & Pension’s Universal Credit.

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RTI – Time is running out

Posted on: September 24th, 2012 by Leighton Reed No Comments

HMRC have introduced changes within the PAYE system that will affect all employers within the next year.

RTI is the biggest change in the PAYE system for 70 years.

Employers need to ensure they are prepared to be compliant from April 2013.

RTI is being introduced to simplify the operation of the PAYE system for both HMRC and employers and in addition the information obtained will support the work of the DWP when universal credits are introduced. HMRC expect records and information to be more accurate and make administration more efficient. The system is integrated with the payroll process and this is also expected to improve the issue of in year coding notices for employees. Using RTI employers will be notifying HMRC about tax, NI and other deductions when or before payments are made rather than after the end of the tax year. There will therefore no longer be a need for P35 or P14 forms. Employees starting and leaving  processes are also expected to be easier.

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MPs Recommend Real Time Information Delay

Posted on: August 6th, 2012 by MarkJones No Comments

The All-Party Parliamentary Taxation Group has recommended that the introduction of Real Time Information be delayed until 2015. The new PAYE reporting system is due to come into effect from October 2013, but the MPs believe the later date would allow HMRC to better coordinate the deduction of PAYE and benefit entitlement.

HMRC however appear bullish about sticking to the original launch date, and are pleased with the pilot schemes currently running. There are now some 1.7m individual records from 338 PAYE Schemes involved in the pilot.

“We are also seeing external confidence in the pilot and we’ve responded to that by offering more large employers, payroll bureaux, new employers and software developers the opportunity to join the RTI pilot or to expand existing involvement in advance of the launch date in April 2013,” said HMRC’s Stephen Banyard.

Experts have warned that the MPs plea is likely to be rebuffed and employers should continue to plan for RTI.

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Improving PAYE – is it time for a spring clean?

Posted on: January 10th, 2012 by MarkJones No Comments

A move that will radically change the way that employers and HMRC handle payslips will come into effect from April 2013. From this date all employers must use the new system which will see all payslip deductions transmitted to HRMC when employees are paid, rather than once a year.

Real Time Information (RTI) will enable employers and pension providers to tell HMRC about tax, NICs and other deductions when or before the payments are made.

It is hoped that the changes will drastically simplify the 1940s PAYE model, by removing P45s and other such complicated forms.

Instead of submitting PAYE information annually after the end of the tax year, all employers will have to submit payroll data online every time that payroll is run. The details of employees pay will be passed to the Department for Work & Pensions to allow ‘real time’ monthly adjustments to be made to the amount of Universal Credits (which will replace Tax Credits from October 2013).

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