HMRC has issued a statement urging employers to act now on RTI, which comes into effect in just three months’ time.
In April 2013 employers will have to start sending PAYE returns to HMRC electronically, using RTI-enabled payroll software, each time they pay their employees as part of routine payroll processes. The returns will include details of all employees’ pay, tax and deductions. This new process will replace sending a separate return at the end of the year.
Preparing for RTI
HMRC is urging employers to follow these three easy steps:
1. Visit the HMRC website for comprehensive information about RTI, including how to prepare, payroll software options and hints and tips to help avoid some common pitfalls.
2. Acquire new or updated payroll software – QuickBooks Payroll is RTI-ready.
3. Start checking and updating employee information. It’s vital that the information employers have about their employees is accurate and up to date – the RTI Wizard in QuickBooks Payroll will help you prepare for RTI by highlighting where new information is required and by allowing you to validate employee information already registered in QuickBooks.
Businesses urged to act now
Ruth Owen, HMRC’s Director General Personal Tax, said:
“To avoid a last minute rush it’s vital employers act now, if they have not already done so.
“Employers will need to send their first return – called a ‘Full Payment Submission’ or ‘FPS’ for salary or wage payments made to employees on or after 6 April – and if they have 250 or more employees they will have to send an Employer Alignment Submission before the first FPS.
“Although reporting PAYE in real time will be straightforward for most, some preparation is needed. There is more to it than simply buying or updating software – although this is key. Employers may need to add employees such as casuals or those below the Lower Earnings Limit to their payroll system and must think about their payroll practices to make sure that they work for real-time reporting.”
Get ready for RTI now
This short webinar, led by Intuit’s payroll and compliance expert, Diana Flier, explains how you can prepare for RTI now and how QuickBooks can help you. You can see the RTI Wizard in action.