Archive for September, 2012

From April 2013 employers will be required to report PAYE in real time.

Under the present PAYE system, employers are required to tell HMRC what deductions they have made from employees’ pay after the end of the tax year. From April 2013 employers will, however, be required to report PAYE in real time, that is every time a payment is made. The new system is known as Real Time Information (RTI).

Employers will also be required to use payroll software to send the details electronically to HMRC and send the details as part of their normal payroll process unless they have nine or less employees when they will have the option to use HMRC’s basic PAYE Tools package to send their information instead.

Most employers will be required to begin reporting PAYE in real time from April 2013, with all being required to do so by October 2013.

HMRC are advising businesses to start preparing for RTI now by talking to their payroll software provider or payroll service provider about how they are developing appropriate payroll software. HMRC also advises employers to check that information about their employees is accurate and up to date, that is that each employee’s surname, forename, gender, address, date of birth and National Insurance Number is correct and in the right format.

Read Full Post »