Payroll changed in 2013…
… It became a big headache.
In April 2013 HM Revenue and Customs introduced the new Real Time Information (RTI) reporting requirements for employers.
So what is RTI?
In a nutshell, it’s a new way of reporting for employers that replaced the year-end P35 and P14 forms. Instead of reporting changes and figures at the end of the tax year, you are required to report on or before every single payday.
You must make sure your payroll systems and software is approved by HM Revenue and Customs and fully RTI-compliant. Here’s a quick checklist of things you need to ensure:
- Do you use RTI-compliant software?
- Is your agent accountant signed up as your agent so they can report RTI on your behalf?
- Is your broadband capability of sufficient strength and speed to handle the additional submissions due on the same date?
- Do you have an RTI expert you can talk to – someone fully conversant with the legislation and who can help with any queries?
- Does your provider have sufficient Professional Indemnity (PI) insurance cover to protect both your business and theirs from potential claims?
Payroll is so much hassle since RTI was introduced in 2013. And Auto Enrolment makes it even worse.
The penalties for incorrect reporting are severe.
For example, the late filing penalties typically range from £100 to £400 (depending on the number of employees). That’s every month. So over a year penalties for late filing could amount to as much as £4,800. Additionally there is a penalty of 5% of tax and NIC that should have been reported if you are more than 3 months late.
But don’t worry… we can take away this hassle and ensure you avoid penalties.
- Leaving us to deal with your payroll takes away all the headaches and frees up your time to focus on running your business.
- You can sleep at night knowing you are complying with the RTI legislation.
- You will know your payroll is submitted on time. And that means you don’t need to worry about the severe penalties of up to £400 per month.
- Professional payroll advice is just a phone call away.
- Less stress as we take care of the complicated bits.
- No internal payroll software and reduced IT costs.
- Real time information to support business decisions.
- Maximum 48-hour turns around, within an agreed payroll timetable and subject to Enhanced data confidentiality.
- Improved record retention provision of full payroll information.