Cummins Mellor are ready to report PAYE in real time -

Cummins Mellor are ready to report PAYE in real time

In April 2013, employers must start sending PAYE information to HMRC in real time. This means sending PAYE details every time you pay an employee, at the time you pay them. This information must be sent electronically as part of the routine payroll process.

By providing this information in real time, HMRC will have up to date records on exactly how much you should be paying them each month, and help avoid late payments and penalties due to errors.

Cummins Mellor have ensured all our payroll software and our Bacs payment system have been updated, and our payroll staff fully trained. We are ready to start submitting Real Time Information (RTI) from 6th April.

Some changes may be required to the way you run your payroll. Some of the changes that will need reporting are:

  • Providing new information on your payroll records, such approximate number of hours your employees normally work in a week;
  • Completing employee information for temporary and casual workers, as well as employees paid below the National Insurance Lower Earnings limit;
  • Letting HMRC know whenever you change a payroll ID – otherwise, HMRC will treat the change as a new employment, which will result in duplicate employment and incorrect tax codes;
  • Letting HMRC know if an employee takes unpaid leave, so they don’t assume the employee has left your employment;
  • Telling HMRC about starters and leavers – this information will automatically be sent to HMRC when you run your payroll.

You will need to ensure your payroll provider uses RTI ready software, as you won’t be able to use HMRC’s PAYE portal for this.

BACS Payments

If you pay your employees directly into their bank accounts via the Bacs system, you will need to ensure this has been updated to include the RTI information cross-reference field. This reference is needed so that HMRC can match payments employees receive with the payroll data you report each week.

What information will be reported to HMRC?

Each time you pay an employee, you already keep payroll information. Previously, this was submitted at the end of each year on forms P35 and P14.

From April 2013, this will now be submitted every time you pay the employee.

  •  You will be informing HMRC of:
  • The amount you paid your employee(s)
  • Deductions, such as Income Tax and National Insurance
  • Starter and leaver dates

You will still raise P45’s to hand to leavers, however, you will no longer submit these electronically, the information will be sent automatically when you submit your payroll information.

Getting your employee records ready

It is important that you ensure all your employee records are totally accurate (details such as full name, home address, date of birth, NI Number and gender) before the new PAYE real time is introduced.

By ensuring this information is correct, you will

  • Ensure employees pay the correct Income Tax and NICs
  • Make it easier to match the information you send with HMRC’s record of your employee
  • Reduce the number of employee queries you receive from HMRC

What will NOT change?

  •  PAYE – this remains the same, it is only the reporting that changes
  • Coding Notices – employers will still be able to choose how they receive coding notices, as they do now
  • Reporting changes to HMRC (e.g. updating an employee’s new name or address – a real time submission will not update HMRC records. It remains the responsibility of the individual employee to notify HMRC of change of name etc.
  • Payment dates – payment dates to HMRC will remain the same
  • Forms P60 – P60’s will remain the same
  • Expenses and benefits – RTI reporting will not change how expenses and benefits are reported. Employers will continue to complete and file forms P9D, P11D and P11D(b)

 

Source: www.hmrc.gov.uk/rti

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