You may have heard the buzz – HMRC will soon be introducing a new way of reporting for employers which will replace the year-end P35 or P14 forms.
RTI stands for Real Time Information and will affect any employer that runs a payroll for its team, whether manual or system-based. Instead of reporting changes and figures at the end of the tax year, you’ll be required to report on or before every single payday.
What’s more, this will be compulsory from 6 April 2013 for any company with less than 5,000 employees – which includes your firm.
Are you ready?
If you’re currently running your own payroll you should be aware that these changes may cause an extra administrative burden and your internal systems may need an overhaul in order to cope with the additional work required. Any software you use must be RTI-compliant and approved by HMRC.
Already have a payroll provider?
Of course, if you already outsource your payroll, your existing provider should have RTI covered already, but we’d suggest checking with them just in case. We’ve attached a handy checklist of questions to ask them here, just so you can be reassured you don’t need to take any further action.
MJF Accountancy has invested in IRIS software and also teamed up with SGW Payroll, a division of Barclays Bank, to run payrolls for our clients. The software used by us and SGW Payroll has been approved by HMRC as fully RTI-compliant.
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