The biggest change since 1944 is about to hit the payroll world.
The introduction of RTI (Real Time Information) by the HMRC will drastically change the way PAYE is reported.
Instead of reporting your employee payment details at the end of the tax year, HMRC will now expect you to send the details of every payment over to them at the actual time of submission. This includes business expenses, commissions, bonuses and holiday pay.
As part of the Full Payment Submissions (FPS) process you should have a system in place that automatically updates when the payments are made through the Government Gateway. If you are already using software to automate the process this should be simple, nonetheless it has been causing panic in the most payroll departments.
So far the RTI pilot across 320 companies has gone well, with many reporting it to be a simple and straightforward process if using a payroll system that can send all the necessary information required via the Government Gateway electronically.
In theory the RTI process should help to improve the data and deductions and reduce the amount of information sent to the HRMC after the tax year. We will keep our fingers crossed!
Our partner Miracle Dynamics are on the list of recognised software providers for RTI. If you have any questions or you would just like to know more, please call them directly on 0845 634 5015 or visit www.miracle-dynamics.com