Businesses are now experiencing the new HMRC ‘Real Time Information’ (RTI) system which was implemented on 6 April 2013.
The major change affects all payroll schemes and most businesses will have spent time in previous months planning for its implementation. Businesses are now submitting payroll information on line each time an employee is paid, and many are finding it an increased administrative burden. A Full Payment Submission (FPS) provides HMRC with much of the information that it would previously only receive annually. Where FPS alignment had not been dealt with adequately during the planning process, businesses are finding the new regime particularly onerous.
HMRC have acted very swiftly to assist small businesses in one new area of reporting, which has caused problems in early stages of implementation of RTI. They have relaxed the reporting requirement for small employers (those with fewer than 50 employees) who pay employees weekly, or more frequently, but only process their payroll monthly. Until 5 October 2013 these employers, who find it difficult to report every payment to employees at the time of payment, may send information to HMRC by the date of their regular payroll run, but not later than the end of the tax month.
We are finding that many clients are turning to Rothmans for help, and with experienced payroll staff, fully trained in the new procedures, we can remove the payroll headache! All Rothmans offices provide payroll services and outsourcing can be a value for money option. If support is required please speak to your normal contact.