Copyright © 2024 Thesaurus Software Ltd T/A Bright Software Group.
3 Shortlands, Hammersmith, London, W6 8DA
[email protected] 0345 9390019Oct 2012
28
One of the biggest concerns for payroll operators with RTI is "What happens if the RTI submission is wrong?".
The regulations state that the RTI file must be transmitted before or at the time of the payroll period update. With most payroll software the RTI transmission and the payroll period update will be part of the one process. However, it can be fairly common for the update to occur and then the operator realises that something was missed, like an overtime amount or some promised bonus. At present (prior to RTI), all the operator has to do is reverse or correct what they have just processed. But how would RTI deal with this?
This very scenario was one of the main issues brought up by us and other payroll software developers during the various RTI workshops organised by HMRC. It would be unworkable if there was some complicated resubmission process. Also, the periodic payroll processing would become very stressful if the implication of getting it wrong every now and again was a lot more work.
HMRC took this on board and conceded that once the year to date figures in the next RTI submission were correct, then the employer's obligations have been met. There is also a procedure in place if an incorrect RTI submission is made for a final pay period (e.g. week 52 or month 12).
The year to date or cumulative amounts are the most important items in the RTI submission with relatively minor importance being placed on the pay or tax figures for a particular pay period.
So, all of you payroll operators can relax. You are allowed to be human now and again!
Bright Contracts – Employment contracts and handbooks.
BrightPay – Payroll & Auto Enrolment Software.
Oct 2012
10
Even if you have not yet enrolled in the RTI scheme or you have not yet received notice of the implementation date for RTI into your organisation, as an employer, enrolment is inevitable.
The earlier you start to prepare for RTI, the smoother the implementation of the new scheme will be on you and your employees.
As an employer it is important that you are prepared. There are steps and procedures that you can implement now in order to prepare.
Audit the data held for all current employees ensuring it complies with the HMRC FPS submission requirement. If this data is incomplete, or requires verification, then initiate this process now eliminating any obstacles in good time before your first FPS submission. This will ensure the majority of data entry is complete prior to implementation date also. Include data capture requests with payslips to ensure employees read the request.
Communicate with employees advising them why it is vital for the personal information held on file to be accurate and complete. Implement procedures to facilitate two way communication between employees and managers, to answer any queries your employees may have and to facilitate the advising of changes to personal information.
Prepare new employee data request forms to be completed upon commencement of employment and prior to the first payment to the employee. This should encompass all the information HRMC requires you to hold for RTI purposes. Implement this procedure now to identify common errors, issues or shortfall in communication and methods to improve this process.
Develop an in-house training programme to:
Prepare in-house procedures to ensure periodical payroll data is complete and accurate prior to signing off the periodical payroll using reports produced from your payroll software. Identify the data checks or audit procedures that can be made to eliminate errors and the associated reports that your payroll software may be able to produce or allow you to customise to complete this task.
Having a series of control procedures in place will eliminate errors in submission to HMRC under the RTI scheme. The earlier these are implemented the sooner they will become an integral part of the payroll process.
Bright Contracts – Employment contracts and handbooks.
BrightPay – Payroll & Auto Enrolment Software.
Oct 2012
2
The 2011-12 Employer Annual Returns (P35 and P14s) were due by 19 May 2012. These returns are now over 4 months late and HMRC has started to send penalty notices if their records indicate that they have not yet received your return.
The penalty will be £100 per 50 employees for each month the return is outstanding, from 20 May 2012 to 19 September 2012. So an employer with 50 or less employees will receive a £400 penalty.
Bright Contracts – Employment contracts and handbooks.
BrightPay – Payroll & Auto Enrolment Software.
Sep 2012
11
Thousands of higher rate taxpayers who have failed to submit tax returns will receive letters from HM Revenue & Customs (HMRC) this month, reminding them that they have only one month left to take up a special opportunity being offered by the tax authority.
The Tax Return Initiative is aimed at people liable to pay tax at rates of 40 per cent and above and who have been told to submit a Self Assessment tax return for 2009/10 or earlier, but have not done so. The campaign is also available to anyone who has tax returns to submit for these years.
People have until 2 October to tell HMRC they want to take part, submit completed returns, and pay the tax and National Insurance Contributions (NICs) that they owe. By coming forward voluntarily through the campaign, launched on 3 July, people will receive better terms, and any penalty they pay will be lower than if HMRC comes to them first.
After 2 October, if they have not submitted their tax returns and paid what they owe, HMRC will use its legal powers to pursue outstanding returns and any unpaid tax and NICs. Penalties of up to 100 per cent of the tax due, or even criminal investigation, could follow.
Bright Contracts – Employment contracts and handbooks.
BrightPay – Payroll & Auto Enrolment Software.
Aug 2012
13
To avoid paying late you must make sure HM Revenue & Customs (HMRC) have cleared funds by the due date for the relevant PAYE period.
For month ending the 05th August the deadlines are:
19th August Cheque payments should reach your Accounts Office by 19th August.
22nd August Electronic payments should have cleared into the HMRC bank account by 22nd August.
Bright Contracts – Employment contracts and handbooks.
BrightPay – Payroll & Auto Enrolment Software.
Jul 2012
28
The Working Together post working group is running a pilot exercise to encourage the use of signpost headings on letters that agents send to HM Revenue & Customs (HMRC) regarding their clients' Self Assessment and PAYE affairs.
These headings will enable HMRC to identify the broad content of a letter, decide whether specific technical input is required and allow them to make sure the correspondence reaches the right area of the department. HMRC hopes that introducing these headings will improve processing times.
Read the HMRC article here.
Bright Contracts – Employment contracts and handbooks.
BrightPay – Payroll & Auto Enrolment Software
Jul 2012
12
To avoid paying late you must make sure HM Revenue & Customs (HMRC) have cleared funds by the due date. If you pay electronically the due date is the 22nd of the month following the end of the tax month, or quarter to which it relates.
For 2012-13, PAYE month 03 - or quarter 1 - period ended 5th July 2012, the due date is Sunday 22nd July 2012.
Additionally for 2011-12, Class 1A NICs, the due date is Sunday 22nd July 2012.
HMRC must receive cleared funds by Sunday 22nd July 2012.
Bright Contracts – Employment contracts and handbooks.
BrightPay – Payroll & Auto Enrolment Software
Jul 2012
10
Higher rate taxpayers who have failed to submit tax returns are being offered the opportunity to come forward and pay up under a time-limited HM Revenue & Customs (HMRC) campaign.
The Tax Return Initiative, launched on 3 July, is aimed specifically at people liable to pay tax at rates of 40% and above who have been told to submit a Self Assessment tax return for 2009/10 or earlier, but have not done so. However the campaign is also available to any individual who has tax returns to submit to HMRC for these years.
People have until 2 October 2012 to tell HMRC they want to take part, submit completed returns, and pay the tax and National Insurance Contributions (NICs) that they owe. By coming forward voluntarily through the campaign customers will receive better terms, and any penalty they pay will be lower than if HMRC comes to them first.
Read more at www.hmrc.gov.uk
Bright Contracts - Employment contracts and handbooks.
BrightPay – Payroll & Auto Enrolment Software
Jul 2012
7
'Lecturers, teachers or instructors' are no longer included in the list of occupations for NIC purposes covered by Social Security (Categorisation of Earners) Regulations 1978. Normal employment status rules apply. The CWG2(2012) Employer further guide to PAYE and NICs' Chapter 1 Page 5 has been updated.
Bright Contracts - Employment contracts and handbooks.
BrightPay – Payroll & Auto Enrolment Software
Jun 2012
19
In April 2013 HM Revenue & Customs (HMRC) is introducing a new way of reporting PAYE: Real Time Information, or RTI.
Most employers will be legally required to report payroll information in real time from April 2013 with all employers doing so before October 2013. HMRC will tell you when your business needs to make this move.
BrightPay 2013/14 will comply to RTI payroll processes.
Bright Contracts - Employment contracts and handbooks.
BrightPay – Payroll & Auto Enrolment Software
Copyright © 2024 Thesaurus Software Ltd T/A Bright Software Group.
3 Shortlands, Hammersmith, London, W6 8DA
[email protected] 0345 9390019