Payroll Transcript

If you employ anyone under a company PAYE reference, you will be required to submit their payroll information from this April 2013 under the new Real Time Information requirements.

Real Time Information is a new way of reporting the details of all employee wage and salary payment, PAYE and National Insurance deductions to the Inland Revenue in a more timely manner, via a report known as Full Payment Submission (FPS), on or before the date the payment is made. The current system of submitting a return at the end of the tax year can result in individuals overpaying or underpaying tax so with the new system, discrepancies can be resolved immediately. RTI will also support the introduction of the Government’s new Universal Credit welfare programme to allow the Department of Work and Pension to adjust a claimant’s welfare payments to reflect their current circumstances.

Hallidays own Payroll Bureau started to prepare for RTI some time ago both for us, and our many payroll clients. Hallidays have around 60 employees, mostly paid on a monthly basis, and each time a payment is made, we are responsible for submitting the Full Payment Submission report I mentioned earlier.

If you run your own Payroll, you will need to check that your software and employee information meets the new requirements. If any of the data required is incorrect or missing, for example, names not shown as on the birth certificate and initials not shown as full names, this will need correcting. If your payroll software is not RTI ready, you need to make arrangements to upgrade this or if you process your payroll manually, purchase a new RTI ready payroll software program. Alternatively you might prefer to let someone else worry about this and outsource your payroll. If you have a low number of employees, you can submit your information via the HMRC basic PAYE toolkit on their website, so check this out so you are prepared for what’s required. The latest information from HMRC is that in the first year while you are getting used to the system, penalties will not be incurred for any late submissions. However, penalties may be incurred if the information provided to HMRC via the RTI system is incorrect.

Nothing should really change from your employees point of view they should receive their payslip each pay period, but should you have a week or month where no employees are paid then you must submit an Employer Payment Summary and tick that no employees have been paid in this period. If you have 5,000 employees or more different rules apply so please consult the HMRC website

To summarize we would advise that you check your employee details are all correct and up to date now before this important April deadline, check your payroll software is RTI ready or alternatively contact a Payroll Bureau and let them worry about the new legislation. If you would like more information or to talk with a member of the Hallidays Payroll Team about your new responsibilities please contact Nicola on 0161 476 8276 .

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