Employers should make sure that they are ready for the switch to the Real Time Information (RTI) from April 2013. Most employers will be affected from April 2013 and all employers by October 2013.
Essentially, RTI requires that you submit payroll data on or before the date that salaries and wages are paid to employees rather than wait until the end of the tax year to submit a P35 and associated returns.
This is the first major change to the PAYE system since 1944.
According to HMRC employers should take action on the following three steps:
- Visit HMRC website for comprehensive information about RTI, including how to prepare, payroll software options and hints and tips to help avoid some common pitfalls.
- Acquire new or updated payroll software – employers will need to talk to their payroll software provider or their payroll service-provider (if they have one) about this.
- Start checking and updating employee information. It’s vital that the information employers have about their employees is accurate and up to date.
These generalised comments hide a multitude of tasks that must be completed before 6 April 2013 when RTI commences for smaller businesses. If we provide a payroll service for your business all of these transitional tasks will be sorted for you, if you still prepare your own payroll and need help with the transfer to RTI please call. Less than two months to go…