I have read, re-read and read again all the RTI information on the HMRC website. I have searched for more RTI information online and still it isn't sinking in!
Am I the only one that can't seem to imagine what RTI will be like when its actually here? I just can't seem to grasp it all.
I also can't find how an FPS is actually submitted. Is it through the payroll system or online? Rrrrrrrrr it just seems like theres the tiniest bit of information for agents and all the seminars/webinars you have to pay for when really this information should be readily available for free.
Could anyone confirm for me whether a paye scheme needs to be opened even if employees are paid below the NI LEL?
Some sites say that ALL payments to staff, whether they are low earners, casual staff etc need to be included in reports, which suggests that employers must have a scheme opened. But the HMRC site states that a scheme should only be opened if employees are paid above the NI LEL.
I haven't done payroll for about a year but i have worried clients asking if i need to do their payroll. Typical clients are one man bands paying their wives wages of £50 a week.
Many thanks
I think (but I could be wrong), if the employees are under the threshold then you don't have to register for payroll, BUT if 1 employee is over the threshold then payroll has to be done for all of them, so if you have got 10 on the payroll, and 1 is over then the payroll has to be done for all done regardless of what they earn.
If I am wrong then please someone come on here and let us all know. I agree with Phil, in that make sure you have FULL names of the employees, and all their details. Can't have abbreviated names, so if their name is Samual Smith, you can't put him down as Sam Smith.
Could anyone confirm for me whether a paye scheme needs to be opened even if employees are paid below the NI LEL? Some sites say that ALL payments to staff, whether they are low earners, casual staff etc need to be included in reports, which suggests that employers must have a scheme opened. But the HMRC site states that a scheme should only be opened if employees are paid above the NI LEL. I haven't done payroll for about a year but i have worried clients asking if i need to do their payroll. Typical clients are one man bands paying their wives wages of £50 a week. Many thanks
As long as (a) no employees earn above the LEL and (b) P46s are held for all employees with box A or B ticked then no PAYE scheme needs to be opened and therefore no RTI filing is required.
The moment a PAYE scheme is required all employees must be reported, not just those above LEL.
Thanks everyone for your replies. I think I am panicking a little too much about it which is clouding my thoughts!
I have one company payroll which has always been straightforward. Its a papershop, one employee, same wage every week, no changes. So with this one as a starting point what should happen? Do I contact the employer to ensure all employee details are correct? Do I need copies of any I.D? Do I have to do any checks on the payroll records? When I run the new payroll RTI disc and start this in the new tax year will it be step by step and guide me through it or will I have to do something different.
I use sage 50 payroll. They have sent me the RTI edition disc but I haven't ran it yet. Is it ok to run the disc and it will carry on with the current process then in April you submit FPS etc?
I feel like crying today. I've just got over the flu which has left me tired and unable to concentrate and as time is running out I'm trying to grasp all this RTI stuff and it just isn't happening. I can feel myself getting really annoyed with it.
Do I need to ask every single one of my payroll clients the exact date they pay their staff or should I just use the date that I process the payroll and presume that they do actually pay on that date? I have 70 payrolls to do and the thought of getting I.D and asking each one that all information is accurate is near enough killing me off. Most of them, trying to get the tiniest amount of information from them is like getting blood out of a stone.
The above is an HMRC press release dated 29 November 2012 which I have quoted below and highlighted places which I think you might find helpful.
" HM Revenue and Customs (HMRC) has published guidance on penalties for late and inaccurate returns submitted in real time (RTI).
The guidance sets out that for employers operating PAYE in real time:
There will be no penalties if in-year Full Payment Submissions (FPS) are sent in late, until April 2014. The current penalty process will continue to apply at the year end, with a penalty being charged if the relevant information is not up to date by 19 May. From October 2013, HMRC will send letters so that employers understand that they would have been liable to a penalty
There will be no automated late payment penalties until April 2014. The current processes will remain until then. HMRC will use real time information to collect late payments
For the tax year 2012-13, HMRC will not charge penalties for inaccuracies identified on in-year FPSs. But penalties may be charged after the end of the tax year, based on the final FPS for the year
For the tax year 2013-14, if we discover inaccuracies on FPSs, in-year penalties may apply. HMRC will use the same considerations as now to identify employers for compliance visits. If HMRC discovers inaccuracies as a result of a review, it will use the same criteria as now to decide whether a penalty applies and if so, how much it should be."
So your immediate worry is to set in place a system for confirming accuracy with your clients - not filing on time. In fact, from this press release, it is better not to file, than file something inaccurate. Many agree that the requirement to file before payment made is insane, but it looks like that is what we will be faced with from April 2014.
