The HR Dept is RTI (Real Time Information) ready
Following recent announcements that the payroll system will see its biggest overhaul since its inception in the 1940s, The HR Dept is advising businesses of any size to prepare now. From April 2013, when HMRC will implement a new method of reporting PAYE, employers’ payroll administration will be put to the test. The current method of reporting a workforce’s PAYE is manually, once a year. From April 2013 employers must send HMRC PAYE information when or before their workers are paid. This will depend on the employer’s payment frequency, thus reporting could be required on a weekly basis.
The HR Dept payroll service is however at the forefront of these changes, having taken part in HMRC’s pilot scheme. Clients who outsource their payroll to The HR Dept will benefit from a payroll company that is well practised in RTI and will ensure their PAYE scheme is meeting the new HMRC requirements in 2013.
The HR Dept comments “The new method of reporting PAYE is undoubtedly going to increase administration and costs if done in-house. New approved electronic software will have to be implemented, employee data will need to be continually updated, not to mention the weekly or monthly reporting to HMRC when employees are paid. We are really pleased that our clients are able to benefit from a payroll service that is RTI ready and we would like to put a word of caution to businesses that have not yet prepared themselves that there will be a penalty regime operated to ensure compliance.”
Real Time Information will eventually offer a simpler and more accurate method of reporting tax and national insurance, to combat the problems HMRC faced in 2011 when it had to make payments to those who had overpaid on tax and request payments for those who had underpaid. Contact The HR Dept for help and guidance on RTI and our up to date payroll service.
The HR Dept specialises in advising small and medium sized business on all employment issues. Please contact us for more information.