What happens if I don’t carry out the RTI (Real Time Information) Payroll requirements?
You will get fined from April by HMRC. For more information on RTI and how to avoid being fined, please contact us.
When will I need to start sending RTI forms?
From your first pay date on or after 6 April each year. So for example if you pay your employees weekly every Friday, your first RTI submission is due on 12 April. If you pay monthly on the last day of the month, your first RTI return is due on 30 April.
What is changing with RTI?
The way that you calculate PAYE, pay your employees and make payments to HMRC is NOT changing. The main difference will be how and when you report your payroll information to HMRC. Instead of sending your information to HMRC once a year (via a ‘P35’ and ‘P14s’) you are required to send RTI returns each time that you pay your employees, be that weekly, monthly or otherwise. Also, you will no longer be required to file starter or leaver forms (‘P45’ and ‘P46’) to HMRC as this information will be included as part of your regular RTI submission.
Why is HMRC introducing RTI?
HMRC is introducing RTI in order to modernise the Pay As You Earn (PAYE) system and keep pace with changes to modern working patterns. Nowadays, many people have more than one job, and can change jobs more frequently. This means people sometimes pay the wrong amount of tax. RTI provides HMRC with up to date information, so it should be easier to ensure deductions for tax, National Insurance and student loans are accurate.
What is RTI?
From 6 April 2013 employers will have to start reporting PAYE information to HMRC in real time, known as Real Time Information – or RTI. In practice this means that employers will have to send details to HMRC every time they pay an employee using payroll software to send the information electronically as part of their routine payroll process.
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