Real Time Information (RTI) came into force in April 2013 and affects every employer in the country. This was the biggest change to the PAYE system in 70 years – so it is not surprising that there were a few teething problems.
How big was this change?
In the year to March 2014 HMRC received 31 million Full Payment Submissions (FPS) covering 663 million payments to individuals. Data quality was high with over 99% of individual records matching a valid national insurance number. This information was then used to issue tax code notices and feed into the Universal Credit System.
Getting it right, before paying the price
The biggest concerns raised by employers were the ‘reporting on or before rules’, which particularly pained those with weekly and cash based payrolls, such as restaurants. HMRC relaxed the rules but from April 2014 they are back in place for employers with more than 10 employees.
HMRC also staggered the introduction of RTI penalties, which will be issued for late filing or errors, however these are also expected to be back in place this year (possibly from October 2014).
Are you an employer struggling to cope?
Whilst there is logic behind RTI, smaller businesses have been left feeling that this is just another burden in their already busy work schedule. If you feel the same and would like some help then A4C offer an outsourced payroll solution, which is simple, reliable and RTI compliant. Our prices are fixed and very competitive so if you need a payroll department but don’t want the overheads or responsibility then give us a call today to see how we might help you.