Do you pay employees - are you RTI ready?
From April 2013 HMRC will introduce a major, mandatory change in the way PAYE is reported through: Real Time Information (RTI).With April 2013 fast approaching are you ready for the biggest change to the operation of PAYE since it was introduced over 60 years ago? A recent article in The Daily Telegraph* suggests most employers are not, with 81% admitting to being unprepared for Real Time Information (RTI) and a further 46% saying they had never heard of it.
Under RTI, from 6 April 2013 an employer is required to report every payment to employees on or before the time of payment. To help small businesses with less than 50 employees who pay employees weekly or more frequently but process their payroll monthly, there is a temporary relaxation from this rule. Until 5 October 2013 smaller employers only need to file monthly when they carry out their normal monthly payroll processing. There are some limited situations where employers do not have to report "on or before" the time of payment so if you have any doubts about whether a payment need be reported Mercer & Hole can help.
Testing took place between November 2012 and March 2013 and Mercer & Hole were among a small group of accountants to pilot the new payroll software and are well-prepared to guide businesses through the transitional process. For your reference we have created a useful checklist (below) of the things you need to consider to prepare for RTI.
Although there will be strict submission deadlines, Mercer & Hole are well-placed to meet these requirements and already have the payroll software that is ready for RTI. Should you wish to clarify your position or are seeking an accountancy firm to run your payroll system, please do not hesitate to get in touch with us.
Date: 4th April, 2013
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