Retailers should be preparing for major changes to payroll law
says accountancy firm Mitchell Charlesworth. Real Time
Information (RTI) is being introduced by HM Revenue & Customs in
April 2013 to improve the operation of Pay As You Earn (PAYE) and
in the latest development, HMRC has published a consultation on
the penalty system for noncompliance.
The current system allows employers to issue PAYE information at
payroll year end using electronic versions of P35 and P60 forms.
However, the new RTI system will require firms to send this
payroll data via the government gateway on or before the date
each employee is paid. Further, new rules could come into force
allowing HMRC to fine a company a minimum of £100 per week
for each late or nonsubmission per 50 employees, with penalties
increasing depending on employee numbers and the duration of late
submissions.
Joanne Nieman payroll manager at Mitchell Charlesworth says
businesses can prepare for RTI in a number of ways,
“Firstly, they can submit employee data to HMRC before RTI
is live to help correct any inaccurate or incomplete data.
Secondly, they can improve and maintain their existing data
ensuring they have dates of births, full names and addresses of
employees on the payroll. Another vital step is contacting the
payroll software supplier, or payroll provider, to ensure they
can deliver on RTI. Finally, employers must consider banking and
whether they need to upgrade their BACS facility to accommodate
RTI.”
HMRC is currently trialling RTI with hundreds of employers. New
employers will be able to join the RTI trial from November, to
avoid starting a new scheme in April 2013.
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