What is RTI?
RTI is the introduction of Real Time Information which is to be submitted to HMRC on or before EVERY pay day. It will detail employee and Director information and payments made to them.
It will replace the year end returns that are normally due every April. Employees will still receive a P60 and the employer declaration will still need to be submitted.
Why introduce RTI?
The introduction of RTI is intended to make the whole PAYE process simpler than it currently is. It will allow tax coding notices to be assigned more effectively. PAYE liability payments will be clearer to HMRC and allocated more efficiently and the DWP will have up to date earnings information to allow more accurate funding and prevent fraud within the system.
How does RTI affect you?
Every company in the UK will be required to submit payment information. All records must now be sent electronically as manual payroll entries will no longer be accepted.
What information is required?
- Full name of employee as per legal documentation – no nick names or shortened names
- Date of Birth
- NI Number
- Payment and deduction information
What have Just Payroll Services done to prepare for RTI?
Software – We have upgraded our software systems to ensure that submissions can take place every pay day.
Training – We are fully trained and aware of all aspects of this new requirement.
Communication – We will provide all clients with the necessary information regarding the implementation of the RTI submissions so that you are as informed as we are.
Preparation – Processes are in place to run your EAS ahead of the launch of RTI. We will soon be asking all clients to verify the data held.
What information is submitted?
EAS – This is an Employer Alignment Submission of employee and employer information. It will check that the data held is correctly formatted for future returns.
FPS – This is the Full Payment Submission which details employee information and the payments and deductions made. It is due on or before the pay day and once sent cannot be changed. Any changes or adjustments must be done in the next pay period.
NVS – This is a submission to request or verify national insurance numbers.
EPS – This is the Employer Payment Submission or HMRC PAYE liability submission and is sent if there are statutory payments to be recovered, NIC compensation, CIS deductions suffered, NIC’s holiday which are different to those expected in the FPS. If you do not make a payment for any pay period an EPS will be sent to show that no payment is due.
The introduction of RTI means that the year-end process will now only be in the form of the employer declaration.
You must ensure you submit your payroll information as concisely and promptly as possible to allow normal process time and be able to make the return on or before you physically pay your employees. We will be introducing new processes to assist in achieving correct timing, dataflow and checks to make RTI as smooth as possible.
Upon the receipt of the submission to HMRC we will be issued with a log number as proof that the submission has arrived. However, if the information is in any way incorrect the HMRC say they will return the file to be corrected and resubmission will need to be made.
RTI Do’s and Don’ts….
- Check ALL employee and employer details prior to your Alignment submission.
- Submit payment details promptly as we must not miss pay day.
- Have ALL new starter details ready before you try to pay any employee
- Inform Just Payroll of any leave dates
- Continue to provide your employees with P60 forms each year and complete P11D’s if required.
- Provide P45’s to leavers
- Obtain a P46 where a P45 has not been provided.
- Make changes to you payroll data after submission has been made
- Make advances to your employees as this will count as a payment and an FPS will be expected.
- Try to pay a worker without all of the required information.
- Make more than one payment run in any given period. The FPS cannot be submitted more than once.
RTI is mandatory therefore as of April 6th 2013 Just Payroll Services will be making RTI submissions on your behalf each and every pay day.