Date: 15 March 2013
HMRC are changing the way that employers report employees and payroll information and submission of various returns and reports to them. The current payroll and PAYE reporting system which has been used for many years is being replaced with Real Time Information or RTI.
In the previous PAYE reporting regime employers processed periodic payroll and paid PAYE/NIC due to HMRC on account during the year (based on periodic payroll processed) but only submitted PAYE returns after the end of a tax year to declare their PAYE, NIC and other Payroll related values (or liabilities) in a P35 return. Employees annual income was reported in P14 returns submitted mainly at the same time as P35. With the old system HMRC and other relevant departments did not have payroll data and employee earning details until more than a year after the start of tax year.
Real Time Information RTI represents a significant change in payroll processing and reporting. Employers will need to notify HMRC of employee data and payroll values at the time or before they make payment to their employees and submit returns to declare their PAYE/NIC tax liability or claim.
While the methods for calculating PAYE, NIC, Statutory Payments, etc. remains the same as before, payroll data processed within the payroll software will need to be sent to HMRC through the Government Gateway at various stages using a relevant submission process of EAS, FPS, EPS, NVR, EYU, etc. Complete and accurate employee data also must be entered and submitted to HMRC on a regular basis. Under RTI, employer will no longer need to submit some of the periodic and annual reports such as P35, P14, P45 and P46.
Andica Payroll software enables customers to record and process employee and routine payroll processing and provides Real Time Information submission facilities.