In short an employer has to send details to HMRC on line every time a payment is made, when it is made. It represents the largest change to PAYE since its introduction in 1944, where previously employers paid PAYE due to HMRC on account but only declared and reported their PAYE at the year end, with a P35 return.
From April 2013 all employers will be mandated by law into PAYE RTI requiring them to submit their RTI return on line every time employees are paid as part of payroll arrangements. The return will include details of all employee’s pay, tax and deductions.
The Government’s commitment to the introduction of Universal Credit in October 2013 requires PAYE RTI to support this reform of welfare. PAYE RTI provides employee earnings data to HMRC to allow the Department for Work and Pensions to assess Universal Credit claims with timely and accurate earnings data for employees.
All employers will need to either upgrade to RTI compliant payroll software or use an accountant, bookkeeper or payroll bureau. Employers with nine or less employees can use free HMRC basic tools software.
Employee details must be checked to ensure that all PAYE RTI details are accurate and up to date. We can help you for as little as £25 per week, get in touch now with Club Insure on 0844 4889205.
- Starts April 2013
- All UK employers are affected
- Requires RTI compliant payroll software or use of HMRC’s Basic PAYE Tools
- Exposure to Government Gateway and government IT infrastructure
- Penalties apply for failure to submit returns
- Penalties issued automatically for ‘late’ submission via Government Gateway
- RTI returns need to reconcile with employee payments