Real Time Information (RTI) is a fundamental change in the way payroll information is processed and reported to HMRC. A trial commenced in 2012/13 and it will be mandatory for employers to operate in real time in 2013/14.
Under RTI, the P35 Employer’s End of Year Return will no longer be made. Instead, a “Full Payment Submission” must be made on or before the employees are paid, regardless if this is daily, weekly, fortnightly, 4 weekly or monthly. The payroll data must be sent electronically to HMRC every time you pay your employees, whether they are full-time, part-time or casual workers. All employees must be included on the payroll, as the supplementary return form P38A will no longer exist.
What is apparent is the need for high quality data, both for the underlying employee details and also for the payroll processing to be correct first time. Before making your first submission, you may need to make an Employer Alignment Submission, to ensure that your existing payroll data matches that held by HMRC. This submission will include your employees’ full names, national insurance numbers, dates of birth, gender and number of hours they work.
All employers will need to have access to the internet and use up to date and RTI compliant software or if they have less than 9 employees, they can use the HMRC’s Basic Tools. Alternatively, Milsted Langdon’s payroll service could relieve you of the headache of RTI by processing your payroll and attending to the necessary submissions on your behalf.
If you need assistance or guidance, please contact us.