Is your Business Prepared for Payroll RTI ?

February 12, 2013 by   - Filed under Miscellaneous Articles, Payroll Software, Sage, Software

What is RTI ?

RTI stands for Real Time Information and is the biggest change to the PAYE system since its beginning in 1944, and from April 2013 changes the way that employers report information to HMRC.

Employers need to submit data electronically to HMRC every time that they pay their employees, rather than with their year end return.

RTI starts for most businesses from April 2013 and for all employers by October 2013; HMRC will write to employers to advise them when to start.

How do Employers Prepare for RTI ?

Company Data:

Make sure that the following information is input to your payroll software:

  • Company Name
  • Address
  • Tax District / Reference
  • Accounts Office Reference

Employee Data:

RTI requires that certain key data is provided and it is important that this is correct, otherwise the RTI submissions will fail.

  • Employees' full forename and surnames (ie. not initials, nicknames or shortened names 
  • Full address including postcode
  • Date of Birth (must be in DD/MM/YYYY format and cannot be a "made up" DOB)
  • Gender
  • National Insurance Number (cannot be blank or "made up")
  • May need to state the number of hours worked (depends on payroll software)
  • If paying your staff by BACS, your payroll software may require special BACS Hash characters to be entered

Payroll Software:

Employers must ensure that their Payroll software is RT – compliant. This includes the software used by your outsourced payroll if the employer does not process payroll in-house; be aware that some outsourced services will be increasing their costs to employers due to the additional administration required for RTI.

Government Gateway:

Employers must ensure that they are registered through the Government Gateway at www.gateway.gov.uk for PAYE for employers online submissions.

Need Help ?

Staff at Harley Grove are fully accredited on Payroll RTI regulations and specifically on Sage Payroll. We offer one-to-one remote or face-to-face training on Sage Payroll and, of course, including RTI. 

WHAT NEXT ?

Look out for the next Blog Post that will give more information about what Employers will need to submit and when ? 

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Video from the HMRC:

For your information, you may also wish to view this video from HMRC on the subject of RTI

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