As an employer you may find Payroll time consuming. It can be a headache keeping on top of the legislation and dealing with the risk of staff being absent through illness or holiday.
Next year introduces yet another potential headache for those running payroll with the introduction by HMRC of Real Time Information (RTI).
Here are some pointers for you to consider if you are not aware of the impact of RTI:
What is it?
RTI stands for Real Time Information (RTI) which is being introduced by HMRC with the aim of improving how the Pay as You Earn system works. PAYE information will be collected more regularly in fact each time employers run their payroll rather than the current system of submission at the end of the tax year.
Why is it being introduced?
RTI will enable HMRC to collect information about tax & other deductions each time employers run their payroll. Currently employers and pension providers send HMRC pay and tax information annually. This can make it difficult to keep our data up-to-date and may mean that individuals have overpaid or underpaid tax at the end of the tax year. Under PAYE RTI, employers and pension providers will send information when or before they pay their employees. The better quality, more up-to-date information will mean that, over time, more people will pay the correct tax.
RTI will also support the introduction of Universal Credit - the Government’s flagship welfare programme. Universal Credit will need up-to-date information about employment and pension income so that the Department for Work and Pensions (DWP) can adjust claimants’ welfare payments to reflect their circumstances.
When does it come into force?
It will be mandatory from October 2013 for all but exempt employers. If companies have not been part of the pilot, they will be ‘invited’ to join between April and October 2013.
Next year introduces yet another potential headache for those running payroll with the introduction by HMRC of Real Time Information (RTI).
Here are some pointers for you to consider if you are not aware of the impact of RTI:
What is it?
RTI stands for Real Time Information (RTI) which is being introduced by HMRC with the aim of improving how the Pay as You Earn system works. PAYE information will be collected more regularly in fact each time employers run their payroll rather than the current system of submission at the end of the tax year.
Why is it being introduced?
RTI will enable HMRC to collect information about tax & other deductions each time employers run their payroll. Currently employers and pension providers send HMRC pay and tax information annually. This can make it difficult to keep our data up-to-date and may mean that individuals have overpaid or underpaid tax at the end of the tax year. Under PAYE RTI, employers and pension providers will send information when or before they pay their employees. The better quality, more up-to-date information will mean that, over time, more people will pay the correct tax.
RTI will also support the introduction of Universal Credit - the Government’s flagship welfare programme. Universal Credit will need up-to-date information about employment and pension income so that the Department for Work and Pensions (DWP) can adjust claimants’ welfare payments to reflect their circumstances.
When does it come into force?
It will be mandatory from October 2013 for all but exempt employers. If companies have not been part of the pilot, they will be ‘invited’ to join between April and October 2013.