What is Real Time Information (RTI)?
Instead of submitting pay, tax, National Insurance and other information once at the end of each tax year, you will be required to submit this data each time you make a payment to your employees. This ensures that HMRC have up to date pay information and is designed to aid in the administration of the Universal Tax Credits to be introduced in October 2013.
This means that you will no longer be required to submit P14 or P35 forms to HMRC in May each year. However, you will need to submit various other documents each time a payment is made to an employee.
When do RTI documents need to be submitted?
RTI documents need to be submitted to HMRC on or before the date you make payments to your employees. This can be on a weekly, fortnightly, 4-weekly, monthly, quarterly or annual basis depending on when you make payments to your employees.
Who will submit the RTI documents?
We will do this for you, but you must authorise us to submit the RTI documents each time a submission is required.
How do I authorise you to submit my RTI documents?
You need to check (and amend if necessary) the enclosed payroll information and return them signed and dated . They can be posted to us, scanned and emailed or faxed.
We recommend that you approve your payroll information as soon as possible and definitely before 31st March 2013.
What happens if the RTI submission is late or an error is found?
HMRC will be charging penalties for late returns or returns that contain inaccuracies, although the scale of these penalties has yet to be revealed.
What will prevent my RTI documents being submitted?
There will be two reasons why your RTI documents cannot be submitted:
- You have not authorised us to submit the returns to HMRC
- You have not provided us with sufficient payroll data
How do I ensure I have provided sufficient payroll data?
The minimum information is:
- Full forename – for example as per passport (not Bob or Steve)
- Middle names
- Full surname
- Correct date of birth
- Full address with a minimum of 2 lines and a correct Postcode
- National Insurance Number
We have previously provided by email a New Employee Form which you should complete when adding a new employee to your payroll.
If you require these documents to be resent then please contact us.
When should I provide my payroll information to you?
You should provide payroll changes to us no later than 5 working days prior to the payment date. Changes provided later than this may not be processed until the next pay run.
I pay my employees an estimated wage on a weekly basis but run a monthly payroll; what affect does RTI have on me?
You will be required to either:
- Run a weekly payroll and make a weekly RTI submission or
- Begin paying your employees once per month
Our charges for running a weekly payroll are approximately 4 times higher than for a monthly payroll so we advise to begin paying your employees on a monthly basis.
If you need any further information, please contact me.