RTI (Real Time Information) Frequently Asked Questions

 

Q: What will RTI (Real Time Information) do?

A: RTI will tell HMRC how much an employee has earned and the amounts that they have been paid. It will report all payments and deduction as well as statutory amounts to HMRC electronically.

RTI will make payroll processing straight forward as forms P35 and P11 will no longer be required at year end. P45 & P46 information will be communicated electronically too.

Any PAYE errors will be picked up and rectified sooner using RTI

HMRC will be able to chase payments sooner as they will know what is overdue on a more regular basis

Universal Credits will be underpinned by Payroll Processing under RTI as a result errors and fraud will be reduced.

Employers and pension providers will  have to send this information to HMRC online for payments made to all their employees including those paid below the Lower Earning Limit for NI.

Q: How does the RTI changes support the payment of Universal Credits?
A: By providing the Department for Work and Pensions (DWP) payroll information dirctly. This will allow them to calculate any benefits due immediately.

Q: Why change the Payroll system?
A: To improve the overall operation of PAYE by making information available to HMRC immediately

Q: How will RTI lighten the load on small businesses?
A: As part of our payroll service RTI will become an integral part of payroll processing. There will be some additional transitional costs but as we become famiiar with the payroll routine our payroll serices will become more efficient. The normal year end process will become less of a burden as reporting is done when the payroll service is completed.

Q: What does RTI mean for Revenue & Customs?
A: Put simply, less work reconciling tax codes discrepancies at payroll year end

Q: Does RTI only apply to employees?
A: Yes - it is for the operation of payroll services only

What changes will be made to the operation of PAYE using RTI?

Q: Will employers electronically communicate all payments as part of their normal payroll processing?
A: Yes, if an employer is registered for PAYE then all payments must be report when they are paid.

Q: Will a form P46 be required when taking on a new employee if they don't have a P45?
A: Employers will need to provide all of the information normally contained within a P46 but a P46 is not required as the information will no longer be sent to HMRC in this format. Instead the information will be communicated electronically when the first payment is made..

Q: What will employers have to do at the end of the tax year if P35 and P11's are not required?
A: Employers will tell HMRC when the last payment in the tax year is made. They will then produce P60's for the employees and make any P11D returns in respect of benefits in kind.

Timetable for the introduction of RTI

Q: When will RTI be introduced?
A: Payroll services for SME's under RTI commence in the period April 2013. Larger employers have until October 2013. 

Q: How will Payroll Services operate under RTI ?

A; There is much more to payroll processing under RTI than we can explain within this article. Our staff have been trained and have operated a pilot scheme since November 2012. Even if you purchase RTI compliant software processing payroll can becomplicated. Our staff are trained to deal with numerous scenarios and spot issues before they become issues. If you want peace of mind from a payroll company that specialise in small and medium business then please contact us on 0800 7566980.

 

 

Joomla SEF URLs by Artio