Four easy steps to successful RTI filing
In the first of a series of blogs on payroll issues, Moore and Smalley’s payroll manager, Margaret Merrifield, outlines how to prepare for the introduction of Real Time Information.
The PAYE reporting regime is about to see the most fundamental changes since it was established in 1944. Over the next few months all employers operating UK payrolls will be affected.
The government is introducing Real Time Information (RTI) which will provide HM Revenue & Customs (HMRC) with more accurate and up-to-date information about employees.
I set out below the key steps you need to take to ensure you are ready for the big changes that RTI will bring.
First Step – Software
Check with your software and any BACS provider that you have the latest RTI compliant programmes.
Second Step – Data Cleansing
Prior to your first submission under RTI you must submit your employees’ details to HM Revenue & Customs through the Employers Alignment Submission* service (EAS). This is a ‘one off’ service to be used prior to your first submission only. This is to ensure that any employees that have ceased are correctly excluded from the submission. Prior to EAS you must ensure that employee data cross matches correctly. Personal information for all employees must be accurately stored on the payroll software to include:
– Full correct forename and surname – no abbreviations, nick names or preferential second names – verified by sight of official documentation e.g. passport or birth certificate;
– Correct national insurance numbers, dates of birth and current addresses.
Passport numbers will be required for any new employees that start after the first RTI submission has been made.
Third Step – New Data Fields
New data fields will have to be completed. Check the web site, http://www.hmrc.gov.uk/rti/ for a list of all the information to be filed. The main ones that you may not have to hand but will need are:
– The number of hours worked weekly for each employee – less than 16, 16 – 30, more than 30.
– Your Corporation Tax Reference if a company or your self assessment number if a sole trader or partnership.
Fourth Step – FPS & EPS
Run payroll, update and submit the Full Payment Submission*(FPS), on or before every pay day.
If adjustments are required to the tax and national insurance reported on the FPS for Statutory payments, NIC compensation, Advance Funding, CIS deductions suffered or NIC holiday then submit an Employer Payment Summary* (EPS) once a month. If a weekly payroll this will include all pay days that fall within the PAYE month as now.
*The EAS, FPS and EPS modules will be available within your software and you should contact your provider if you need further guidance on these.
These new regulations are subject to amendment from now until your first filing date and I recommend that the http://www.hmrc.gov.uk/rti/website is checked regularly for any updates.
For RTI Fact Sheets or further information contact me on 01524 388719