The idea behind Real Time Information (RTI) in Payroll is to make PAYE (Pay As You Earn) submissions more efficient, more accurate and easier to administer. Employers need to submit information to HMRC in real time every time they pay employees. This also affects pension providers every time pensions are paid out.
Another benefit is that RTI makes PAYE submissions more accurate throughout the year as any changes in tax codes are administered immediately rather than at the end of the tax year. This is also referred to as Dynamic Tax Codes.
The requirements of RTI
You need to send the relevant data to HMRC on or before the day you pay your employees. Submitting your data late or not at all can lead to penalties. In addition, there may still be the need to provide the following forms: P60, P9D, P11D and others as necessary.
The submission of payroll data to HMRC happens via Full Payroll Submission (FPS). If you use up-to-date payroll software, it generates the necessary reports automatically and submits your payroll information to HMRC online.
There are certain, very few specific exceptions that allow employers to submit FPS after their employees’ payday.
If there are no payroll payments in any given tax month, the employer does not have to submit an FPS report. There is, however, the requirement to submit an EPS (Employer Payment Summary) by the 19th of the following tax month which will notify HMRC that no FPS was necessary. This ensures that no penalty is issued if HMRC were expecting an FPS to be submitted.
We can relieve the pressure of your payroll obligations
Here at Alba we deal with our clients’ payroll for them. Whether you pay your employees weekly, bi-weekly, four-weekly, monthly or even quarterly we can do the heavy lifting for you. We deal with any deadlines, all the necessary admin and paperwork as well as any required HMRC reporting.
But we do not stop there. We can also advise on the most suitable payroll system for your business.
When it comes to paying your employees, we provide employee payslips and give you the peace of mind that everything payroll related is taken care of in a timely manner. And this leaves you more time, so you can focus on growing your business.
If you would like to find out more about Real Time Information or how we can be your payroll department “next door”, please contact us either via email at admin@alba.uk.com or ring us on 01509 853779.
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