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Are you RTI Compliant?

Posted: 25 Apr 2013 in Blog

As from April 2013, all  employers –will be have to change the way they report PAYE .

The main change is that all employers will have to submit a return on-line each time they run a payroll. Also you cannot as in the past just run a payroll once a year.

One  of the questions I get asked is whether there is any way to file these returns on paper. The answer is “no” and these must be filed electronically via the internet.

So how are you set up to submit returns online?

We hope you have already acted as the first return you will have to file will be in the next few weeks!

RTI (Real Time Information) has been now been introduced by the HMRC (Her Majesty's Revenue & Customs) and becomes mandatory for all employers as from  April 2013 If you’ve not previously submitted online you will need to register with the Government Gateway and activate the PAYE for Employers Service . To do this, visit www.hmrc.gov.uk, click Register (new users) and follow the on screen instructions. You will need your PAYE reference handy before you start.

On the HMRC web-site there are two tabs on the screen and the system won’t let you out unless you have completed both. The first page stores the Gateway User ID, Password, Company Name, Tax District/Reference and optional tick boxes, such as keeping a log of each time you submit, and automatically checking for new messages when you open the menu. (I recommend you do NOT tick that option as it means the system will be very slow to access because it checks on the Internet every time you click on the option, which can tie up the PC for ages – especially if you clicked on the option by mistake!)  

The second screen requires your personal details, such as your name and email address, so that the system can email you a confirmation when you submit data.

Warnings

One of the main consequences of RTI is that you will need to have a payroll software package in order to submit the RTI filings. The alternatives are that you will either have to to down-load and use the HMRC free software or purchase payroll software from an independent supplier. The HMRC software is free but it has some limitations. An example is that it cannot produce payslips

If you purchase payroll software you should make sure it is one of the software providers approved by the HMRC.

One of the warnings that you are given about RTI is that you will no have to have ALL employees on your payroll, including students and occasional staff.
If you want a software  system that has a full set of functionality you will have to buy such a system. There are many available and most can be down-loaded over the web.

But who offers such software and how much does it cost?

Well the big 4 are – Sage, Quick Books, Money Soft and Iris and they cost from £56 to £264 per year plus VAT for a small business licence. (Iris says it’s FREE but cannot print plain pay slips so you have to use their stationery!)

CONFUSED? BORED? NOT DONE IT YET?

Don’t worry if you are one or all three of the above. Accounting Help’s  Payroll service is here to help you even if you haven’t started and today is 25th April with a weekend ahead.

From just £20 per payroll of up to 5 employees (full and/or part time) we can have you legal and inside the penalty zone!  And you get a FREE help line as well. For the full details on our service contact us  NOW on info@accounting-help.co.uk for the full details.
 

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