By now most employers will be aware that HMRC is introducing real time reporting of payroll information (RTI: Real Time Information) every time employees are paid. This means that many of the forms which are currently submitted during and at the end of the tax year will be superceded:
- P45 for starters and leavers
- P35 end of year return
- P38(S) for students
- CA6855 NI number trace/check
Employers will need to be more diligent about collecting information especially for starters which is not the easiest task at present.
Over the past couple of weeks we have been checking all of our payroll clients and most of the information required is already held:
- Full name for employer and employee
- Address for employer and employee
- NI Number
- Date of birth
- PAYE reference number
However there are a couple of areas where information was not required previously but is now and these are:
- PAYE accounts office reference – this is the reference used when paying HMRC and is in the format 123PZ00456789
- Hours worked by employees, these are in four bands: 0-16; 16-30; 30+; other. At present “other” is an acceptable answer, but it would be best practice to update these as they will no doubt become statutory in due course
For most employers RTI is required from April 2013 and a return must be made before or on the day that employees are paid, so there is no leeway for late amendments. Most software suppliers are now providing RTI compliant software, you will need to make sure you have the latest update loaded ready for commencement.
Penalties for late submission will start in April 2014, but it would be wise to start as soon as RTI is introduced.
This article only covers the basics so if you have any specific queries relevant to your business circumstances you should seek professional advice before taking any further steps. If you would like advice in this or other areas feel free to call. Alastair Wood, AW Accounting, Gravesend – Accountants who “speak your language”