Payroll Law Changes - Real Time Information: Its Impact on Universal Credit and How It Will Be Submitted


Ken Davies, Director of Mitchell Charlesworth's Outsourced Payroll Department examines the updates to Real Time Information (RTI) that have been released in recent days:

Money Question Mark There have been a few articles in recent days that talk about RTI's impact on Universal Credit and how RTI data will be submitted.

While the current proposal is that RTI is submitted to HMRC via the Government Gateway the original idea was that all employers would have to submit RTI data within the BACS payment instruction to the bank.

The latest articles are interesting because they support what I have heard in discussion groups; HMRC's long term aim is that RTI is submitted via BACS. This would do away with the separate RTI submission and hash referenced BACS submissions.

Without having future control on how employers make payments to staff, HMRC may find that politely requesting all employers to submit RTI via BACS to be a Sisyphean task.

Further information regarding these changes can be found here:

http://bacs.wareanthonyrust.co.uk/2012/ecomms/feb_ecomms/_down/RTI_FAQs.pdf

http://www.guardian.co.uk/government-computing-network/2012/mar/06/rti-hmrc-real-time-information?newsfeed=true

There is also a little more flesh on hash referencing that suggests employers who pay via telephone, cash etc may have to include the reference within RTI at some point in the future, probably as part of the "interim solution" that will commence in April 2013.

If you have any questions about how Real Time Information for Payroll may affect your business, or to discuss outsourcing your payroll requirements to Mitchell Charlesworth, contact Ken Davies today on tel: 0151 423 7500 or email: ken.davies@mitchellcharlesworth.co.uk.

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