The potential impact of the introduction of RTI (Real Time Information) by HMRC is hugely demanding on the ‘small business’ in addition to all the other commercial issues of general business. So yesterday an announcement has been made that the introduction of RTI for ‘small businesses’ has been deferred whilst they carry out various consultations during the summer.
However it hasn’t gone away and those businesses will have until 5 October 2013 to have everything in place and then they must operate wages/payroll under this regime.
In the meantime those employers can choose to file their wage information with HMRC but if they do then it must be filed before wages are paid, certainly no later than the end of the tax month, 5th of each month.
So just when the facts were becoming clearer HMRC have muddied the waters.
Are you confused as to whether or not RTI is immediately required for you?
Where you ready in the first place and do you know what information is required to be filed? Do you know the extent of the information being placed in the hands of HMRC?
If you have answered ‘no’ to anyone of these questions or have concerns over the operation of RTI then please contact Andrew Keates on 0151 277 5353 or you can visit our website www.andrewkeates.com
Undoubtedly one of the most important changes ever to the operation of payroll/PAYE since it first commenced.
Although it has already been in operation for a few months for larger organisations the real impact for small/medium businesses really kicks in from the 6th April 2013. The ‘start date’ depends upon your PAYE reference number however that does not prevent anybody preparing to implement the new system.
Care and attention needs to be made to ensure that all the data held for employees is complete and correct for all the filing requirements laid down by HMRC. Equally important is to endure that your software, or that of your advisor, is fully compliant.
Basic information such as employee’s full names, dates of birth and NI numbers need to be full and correct, these are just some of the basic requirements and frequently this information is actually noted incorrectly.
The details are required so that everything is compliant with HMRC’s system and will also provide up to date details regarding all employees and therefore any application for the new ‘Universal Tax Credit’ system.
Information is to be provided within and by a specific date/time and failure to comply by the deadline and/or pay any liability by the due date will, in due course, result in interest/penalty charges. All the information is to be reported as well before the wages are paid, so accuracy becomes hugely important
We can’t emphasise enough the need to take proper professional advice and if you have any queries or feel we can be of assistance then please contact us on 0151 649 1545 as a matter of urgency, remember the date – 6th April 2013!!