Real time processing
From April 2013, employers were required to submit PAYE information to HMRC in real time. This mean that every time an employee is paid, HMRC must be notified of this immediately. Previously, HMRC were informed about what payments had been made to employees at the financial year end once the employers annual return was completed and submitted. RTI replaced the need to submit the annual return and instead forced the employer to submit during the year when each payment is made.
RTI affects all registered employers regardless of whether they are “director-only” companies or those that have additional full or part time employees. This means that even if a director takes a small salary each month a NIL return must be submitted to confirm this (previously nil returns could be done quarterly or even annually).
What does this mean to you?
As part of the standard service we will discuss the salary options you have and recommend a monthly amount. We deal with all relevant submissions to HMRC, you just need to arrange the payment on the last day of each month. If you currently complete your own payroll then you can continue to do so unless you let us know.
Late submission and penalties
HMRC will apply late penalties and interest if submissions and payments are not received each month. This can include nil returns submitted late.
They can also impose penalties if a submission is inaccurate or does not tally up with the annual payment. It is recommended that you let us know of any changes to the regular payment of custom payroll as soon as possible.
If you have any queries with RTI or how it works within your business, feel free to speak to one of us and we would be happy to help.