Payroll – Hopefully if you have employees, even if it’s only yourself, you’ll be aware of RTI, or Real Time Information for payrolls. What does this mean? What’s changed and do you need to be concerned?
The lovely people at HMRC have provided guidance, and have been testing the approach on volunteers, so all should go smoothly. Lets hope so! If you have a payroll, you have 3 choices:
- Use payroll software and make sure it’s updated for RTI
- Get a payroll bureau or your accountant to do it for you
- Use the HMRC free software (as long as you don’t have more than 10 employees)
Each of these options are equally valid, and which you choose, depends on your confidence and attitude to extra cost and hassle.
The main thing to do to prepare is to make sure your payroll information for your employees is complete and up to date, and you’ll have to do this no matter which option you choose. This information includes their proper name, address, date of birth and a valid National Insurance number. If you haven’t done so already you’ll need to go through this information for every employee and make sure it is correct.
This information will need to be included and pay details reported for every employee from 5th April, including casual and temporary workers and those below the National Insurance Lower Earnings Limit. So basically if you pay someone you’ll need all their details and to report via RTI.
Reporting every time someone is paid means there is no need to do end of year returns, but don’t forget you’ll still need to do the year end reports for 2012/13.
Will it all work? Only time will tell. I’m sure there will be many teething problems. If your workforce doesn’t change much and your key information is sound I expect everything will be fine. If not, then be prepared.
By Tracey Kelk