PAYE realtime from 2013
Discussion
It effectively means that the employer (or the payroll agent) will need to submit either every week or every month (depending on payroll frequency) the equivalent of the previously once a year Employer's Annual Return.
He will therefore need to be aware of ALL factors concerning the employee such as
and any changes within the week or month related to -
marital status
parental status
living with/without partner status
student loan status
other income status
benefit in kind changes
tax credits (in some cases)
benefits (in some cases)
There will be fines (weekly and monthly) for late filing, failing to notify and/or probably notifying incorrect data.
Should be fun.
I certainly will be charging my clients a lot more for administering their payrolls from April 2013.
I will be attending a course on this new system (referred to as Real Time Information or RTI) in November.
He will therefore need to be aware of ALL factors concerning the employee such as
and any changes within the week or month related to -
marital status
parental status
living with/without partner status
student loan status
other income status
benefit in kind changes
tax credits (in some cases)
benefits (in some cases)
There will be fines (weekly and monthly) for late filing, failing to notify and/or probably notifying incorrect data.
Should be fun.
I certainly will be charging my clients a lot more for administering their payrolls from April 2013.
I will be attending a course on this new system (referred to as Real Time Information or RTI) in November.
I find that frankly amazing.
This is the biggest change to PAYE since its introduction in the mid 1940s.
If you go to the HMRC website and look in the Employer's Section you will see some guidance. The scheme is already in place for those who want to voluntarilly register for RTI. It becomes compulsory for all employers on 6 April 2013.
http://www.hmrc.gov.uk/payerti/index.htm
This is the biggest change to PAYE since its introduction in the mid 1940s.
If you go to the HMRC website and look in the Employer's Section you will see some guidance. The scheme is already in place for those who want to voluntarilly register for RTI. It becomes compulsory for all employers on 6 April 2013.
http://www.hmrc.gov.uk/payerti/index.htm
HMRC are SUPPOSED to be sending out an information pack to all employers. The plan is that everyone should have got one by December 2012.
It is important that employers or their payroll agents get ready for this because it will entail -
training and courses
reading up on the new (onerous) requirements
implementing and/or upgrading payroll software to have it ready and fully finctional in 6 month's time
The DTI and the FSB and the various accounting and tax bodies have all called for a 12 month delay in the implementation of these changes. HMRC are refusing point black to delay anything.
It is important that employers or their payroll agents get ready for this because it will entail -
training and courses
reading up on the new (onerous) requirements
implementing and/or upgrading payroll software to have it ready and fully finctional in 6 month's time
The DTI and the FSB and the various accounting and tax bodies have all called for a 12 month delay in the implementation of these changes. HMRC are refusing point black to delay anything.
I have yet to receive any info from HMRC.
I use ERNIE payroll and they have been sending out the odd email which to be honest I didn't read because I didn't think it applied to me. I currently don't link the payroll program with HMRC (I do the end of year stuff manually with HMRC online) but I guess I'm going to have to now. Seems then the program will likely submit all the data at the click of a button.
All bar one of the payrolls I do have only one or two people in them.
I use ERNIE payroll and they have been sending out the odd email which to be honest I didn't read because I didn't think it applied to me. I currently don't link the payroll program with HMRC (I do the end of year stuff manually with HMRC online) but I guess I'm going to have to now. Seems then the program will likely submit all the data at the click of a button.
All bar one of the payrolls I do have only one or two people in them.
As with me.
Anyone with a regular turnover of casual staff (pubs, restaurants etc) will find this system a complete nightmare I reckon.
On the other hand, it should make employers far more dilligent in their record keeping and checking of staff.I am sure HMRC are hoping that it will cut down on such matters as employment of illegal immigrants, false or incorrect NI numbers, fake names and addresses etc.
Anyone with a regular turnover of casual staff (pubs, restaurants etc) will find this system a complete nightmare I reckon.
On the other hand, it should make employers far more dilligent in their record keeping and checking of staff.I am sure HMRC are hoping that it will cut down on such matters as employment of illegal immigrants, false or incorrect NI numbers, fake names and addresses etc.
I would bet the main aim is to be able to collect the correct tax/NI on a monthly basis.
At the moment HMRC only get an annual assessment of what is payable, but soon they will know what is payable on a monthly basis. Won't be long before they start imposing penalties on those that don't pay it promptly I bet.
At the moment HMRC only get an annual assessment of what is payable, but soon they will know what is payable on a monthly basis. Won't be long before they start imposing penalties on those that don't pay it promptly I bet.
PurpleMoonlight said:
I would bet the main aim is to be able to collect the correct tax/NI on a monthly basis.
At the moment HMRC only get an annual assessment of what is payable, but soon they will know what is payable on a monthly basis. Won't be long before they start imposing penalties on those that don't pay it promptly I bet.
Penalties will apply from the very start of the system. And the new penalties are not about paying PAYE/NI (we already hagve these in place right now). These penalties will be about failing to meet the monthly/weekly data filing deadlines or filing incorrect or misleading data.At the moment HMRC only get an annual assessment of what is payable, but soon they will know what is payable on a monthly basis. Won't be long before they start imposing penalties on those that don't pay it promptly I bet.
PurpleMoonlight said:
[quote]If you employ people on PAYE then yes it would seem so.
For your self employed earning I would say no as you are not PAYE.
Correct. If you are an employer and pay staff under the PAYE system - then it applies to your business. It does not matter whether your business is set up as a For your self employed earning I would say no as you are not PAYE.
sole trader
partnership
limited liability partnership
limited company
plc
charity
club
Even families that employ a nanny will have to comply - and have access to the relevant software to do their weekly/monthly filing.
Eric Mc said:
These penalties will be about failing to meet the monthly/weekly data filing deadlines or filing incorrect or misleading data.
So as an employer where do you stand if you take on an employee who can't provide a P45, doesn't know their NI number (or too lazy to find it) and give you generally duff info?Previously you might have paid them anyway and sorted over a couple of months in time for the annual return, but presumably now it's all got to be sorted before first payroll is done?
grumbas said:
So as an employer where do you stand if you take on an employee who can't provide a P45, doesn't know their NI number (or too lazy to find it) and give you generally duff info?
Previously you might have paid them anyway and sorted over a couple of months in time for the annual return, but presumably now it's all got to be sorted before first payroll is done?
Change of culture required.Previously you might have paid them anyway and sorted over a couple of months in time for the annual return, but presumably now it's all got to be sorted before first payroll is done?
No valid NI - no job.
No P45 - sign a P46
Whatever you do, you need to follow the rules.
You won't have the luxury anymore of sorting an employee's information over a couple of months. It must be right from the word go.
I find it hard to believe that someone running 30 payrolls is unaware of the changes, but then I've been getting bombarded with information from Sage since January so it seems like old news. We're in the trial scheme, so should be switching clients over in the next few months.
It hasn't affected our overall prices too much - there's no year-end submissions to make anymore, the software handles the monthly/weekly submissions, there's just a little bit more checking of paperwork at the start of employment. We've made very certain to put the responsibility for data accuracy on to the client, so they carry any extra fees or fines incurred.
It hasn't affected our overall prices too much - there's no year-end submissions to make anymore, the software handles the monthly/weekly submissions, there's just a little bit more checking of paperwork at the start of employment. We've made very certain to put the responsibility for data accuracy on to the client, so they carry any extra fees or fines incurred.
So, can we put in place procedural forms that require signature each week by all our staff that are paid weekly, that places the entire responsibility for "correct supply of information" on them?
It'll be a bit rum if we get fined for our employees inability to tell us what has changed correctly and in time.
It'll be a bit rum if we get fined for our employees inability to tell us what has changed correctly and in time.
Gassing Station | Business | Top of Page | What's New | My Stuff