Real Time Information – Sequence of Events
The first step in the RTI process is that you will need to send employee data to HMRC which they will validate using their own databases.
Therefore, to avoid any discrepancies during the validation procedure you need to ensure that the employee information you currently hold is complete and up to date.
In particular you need to ensure that the following employee details are accurate:
- Full employee name
- Date of Birth
- National Insurance Number
- Full postal address
Three traps to avoid in particular with regard to names:
- Don’t use ‘known’ names for example Bill or Will instead of William, Sue instead of Susan, Bob instead of Robert.
- Don’t use initials in the forename or surname fields.
- Don’t split double-barrelled names over forename and surname fields. So if Jean-Paul is a double-barrelled forename for example, then this all goes in Forename field. If Smith-Jones is a double-barrelled surname for example, then this all goes in the Surname field.
You may wish to check the relevant information with your employees.
HMRC are planning to stagger the start dates of RTI across employers. Employers will be allocated a start date of somewhere between April 2013 and October 2013. You will receive notification from HMRC regarding your PAYE scheme’s RTI date.
New employee details
Under RTI you will not be able to process pay for new employees which fail the HMRC validation checks. Therefore, please ensure the appropriate checks are carried out and the correct employee information is obtained for all new employees after April 2013.
Under RTI employers operating PAYE will have to tell HMRC about payments of earnings to all employees, even where an employee earns less than the lower earnings limit (LEL), currently £107 a week. This is a change from the current situation where employers do not have to maintain a P11 if someone for example earns £20 a month, being well below the LEL.
The payroll submission you make each pay period must be sent to HMRC before the employees have been paid. Therefore, you may wish to introduce an earlier cut-off date for your pay period after which you will be unable to make any changes for that pay period.
Payments to HMRC
Please bear in mind that under RTI HMRC will be aware of the amount due on a monthly basis.
HMRC are issuing updated information on a regular basis on the new RTI system. We will keep you updated on any further announcements. Meanwhile if you would like any further information about RTI or would like to discuss the option of perhaps allowing us to deal with your payroll on your behalf then please contact me.
Further details are also available on the HMRC website and can be found by visiting http://www.hmrc.gov.uk/rti/employerfaqs.htm
Winckley Payroll Services is a fully managed payroll bureau and is ready for Real Time Information. If you would like a free, no-obligation quote then please contact us on 01772 693111 or email@example.com.