If you’re an employer (including of yourself!), there’s been a recent change to payroll that will have big implications for how you report to HMRC. So take note and get Real Time!
From April HMRC are introducing a new regime for the receipt and processing of payroll information called Real Time Information (or RTI). RTI is being introduced to make sure the payroll and tax information held on every employee of every company in the nation is as up-to-date as possible.
Instead of submitting tax forms at the end of every year, employers will be required to send HMRC payroll information on or before every single payday, meaning the figures held by HMRC are always as up-to-date as possible.
It may sound simple, but RTI has been described as the biggest shakeup to the payroll sector since the introduction of PAYE. The stakes are high, too – any company not meeting their RTI requirements will face monthly fines from HMRC!
RTI is such a shift that many payroll packages that are now essentially useless are being scrapped (such as Sage’s TAS Payroll), to be replaced by packages rebuilt from the ground up to support the new rules.
If you and your business have not begun to prepare for RTI, the time is now! Those using larger accountancy packages should be receiving updates to their software that makes them RTI-compliant, while those using online accountancy packages should see the RTI updates come into effect seamlessly.
If you have any questions about these changes, HUB member Andy Paterson from Crunch Accounting is happy to talk them through with you. Give him a call on 0844 500 8000 or email: [email protected]