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August 23rd 2013 / BY: Wisteria

What is Real Time Information?

The way that you are required to report your payroll information is changing – are you up to speed with the new requirements set by HMRC?

What is changing?

The current system requires businesses to submit annual reports to HMRC regarding their payroll. As from April 2013, this will change to the new Real Time Information (RTI) payroll system. The fundamental changes will be that payroll information regarding PAYE liabilities and NIC contributions for each employee will be submitted to HMRC every month or other payroll interval.

With the new RTI system, there are four main types of submission. These are Employer Alignment System (EAS) which helps HMRC update its records; Full Payment Submission (FPS), which is the main submission informing HMRC of PAYE and NIC Liabilities for employees; Employer Payment Summary if any alterations or nil payments need to be reported; and National Verification Request (NVR), to validate each employee’s National Insurance Number.

Why are these changes required?

HMRC are implementing these changes to collect information more regularly and efficiently. By doing so, they will be able to ensure that each employer’s total PAYE and NIC Liability is correct. Rather than waiting until the year end to calculate how much has been under or overpaid, HMRC will be able to constantly track the payments and adjust these monthly where necessary.

What do you need to do?

In order to prepare your business to enrol with the RTI Payroll system, you first need to ensure that your payroll system is fully compliant and that all employee information is up to date. The most important pieces of information that you will require are:

  • The company’s Accounts Office Reference Number
  • Full company name and address
  • Correct tax district and reference number
  • Correct date of birth in the format DD/MM/YYYY
  • Full forename and surnames (as is on official identity documentation)
  • Correct National Insurance Number

Most payroll software will make the necessary online submissions for you each month with only a small amount of additional work.  However it is important to ensure the relevant systems are in place to deal with this each month.

At Wisteria, we can run your company’s payroll for you under the new RTI scheme. If you would like more information please contact us on 020 8952 0140 or email info@wisteria.co.uk and one of our payroll specialists will be in touch.