RTI for Payroll - MC's Payroll Service Urges Firms to Prepare for These Impending Major Changes to Payroll Law


Real Time Information is being introduced by HMRC in April 2013 to improve the operation of Pay As You Earn. In the latest development HMRC has published a consultation document on the penalty system for non-compliance - opening businesses up to large fines.

Mitchell Charlesworth's outsourced Payroll Bureau Managers are reminding businesses that it is vital to start preparing for RTI now.

More Detailed RTI for Payroll Information can be found by clicking here.

Payroll Dept - Ken & Jo

Mitchell Charlesworth's payroll manager Joanne Nieman warns:

"The new RTI system is due to come into effect next year and if firms are not careful it could be a nasty banana skin. Our strong advice is that firms give themselves enough time to prepare. Our main concern is that leaving this too late could prove time consuming, costly and disruptive especially for small to medium sized firms. It is important to note that the transition to RTI will be mandatory for all employers and failure to comply will result in fines.

We are looking to support employers so they understand their new responsibilities and take the right action to prepare for the change.

Mrs Nieman said the current system allows employers to issue PAYE information at Payroll Year End using electronic versions of P35 and P60 forms. However she said the new RTI system will require firms to send this payroll data, via the Government Gateway, on or before the date each employee is paid.

The latest proposals from HMRC could see a minimum penalty of £100 per week for each late or non-submission per 50 employees. Penalties will increase depending on employee numbers and the duration of a late submission.

Mrs Nieman said the RTI proposals are constantly being updated and is advising employers to address four key areas.

Mrs Nieman continued: "Businesses can prepare for RTI in a number of ways. Firstly, they can submit employee data to HMRC before RTI is live to help correct any inaccurate or incomplete data. Secondly, they can improve and maintain their existing data ensuring they have dates of births, full names and addresses of employees on the payroll. Another vital step is contacting the payroll software supplier, or payroll provider, to ensure they can deliver on RTI. Finally, employers must consider banking and whether they need to upgrade their BACS facility to accommodate RTI."

HMRC is currently trialling RTI with hundreds of employers. New employers will be able to join the RTI trial from November, to avoid starting a new scheme in April 2013.

For more information about RTI and how Mitchell Charlesworth can take the burden away from your firm, contact Payroll Director Ken Davies or Manager Joanne Nieman on tel: 0151 423 7500 or email: ken.davies@mitchellcharlesworth.co.uk

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