C & GB Associates | Accountants, tax planning and business start-up specialists

Go to content

Main menu

- Real Time Information - The clock is ticking...

Published by Guy Baragwanath in Universal Credit & RTI · 12/2/2013 11:23:44
Tags: RTIPAYENIHMRCpayrolloutsourcing

Real Time Information – The clock is ticking...
Gearing up for payroll changes from April 2013

With the changes to payroll administration only a couple of months away, we look at the changes that people who process payroll will have to make when reporting to HMRC, the increased abilities HMRC will get to chase late payments, as well as the idea that outsourcing your payroll may be a beneficial move for you.

Real Time Information – the changes:
Many small businesses are still unaware that from April 2013 employers will have to report their payroll information to HMRC every time payments are made to their employees. For the majority of small businesses this is likely to be weekly or monthly.

Under the current process, it is very difficult for HMRC to calculate how much PAYE/NI an employer is required to pay until the end of year return has been submitted in April or May. Although payslips are sent to HMRC each month/quarter detailing the amount of PAYE/NI being paid, no additional information is sent to HMRC to back up these figure until at the end of the fiscal year.

The new regime, RTI (Real Time Information), will ensure that HMRC know exactly how much PAYE/NI is due each month as a report will be sent to HMRC electronically when the payroll is processed. Many small businesses see this as HMRC delving even deeper into how their business is run, but this is becoming the norm now that most processes are carried out online.

Non-payment of PAYE/NI and HMRC debt collection:
Some businesses at present, with cash flow problems, find that non-payment of the PAYE/NI due at the end of some months helps ease this problem. Whilst this is not how this should be administered, HMRC have no way of knowing how much PAYE/NI should have been paid, so are not able to work out when an underpayment has been made.

Under RTI, HMRC will always be aware how much PAYE/NI is due by every business and will identify the businesses who have failed to pay their PAYE/NI on time at a much earlier stage. HMRC adopt a very aggressive approach to debt collection, and have the powers to administer penalties and interest for late payment as well as for late submission of RTI returns in the future.

RTI reporting and software:
If you carry out payroll using commercial software at present, you need to ensure that your software will be RTI compatible – this may mean you need to get in touch with your software provider to find this out.

An alignment process needs to be carried out for the first submission to ensure that HMRC have the correct records about your employees.

You need to report to HMRC every time employees are paid via an online submission (either through your commercial software, or the HMRC website). This needs to be carried out before you pay your employees.

The process for paying employees remains the same, as does payments to HMRC every month for PAYE/NIC. However, HMRC will now have records to correspond to the payments to know when employers have not paid PAYE/NIC on time.

How outsourcing your payroll may ease the payroll burden:
If you are finding it difficult to keep up to date with all the changes that are taking place at present with RTI, or you are finding it takes too much time out of your busy day to fit in the additional payroll procedures required, outsourcing your payroll to a specialist may be more beneficial for you.

Outsourcing your payroll can be a very cost effective way to ensure that your payroll is calculated correctly every time and free up the time you usually spend calculating the payroll to run other areas of your business.

Having someone external carry out the payroll means that you do not have to spend many hours keeping up to date with all the latest PAYE/NI changes, teaching yourself how to calculate statutory payments such as SMP, SSP etc or paying for payroll software each year. You also won’t have to worry about RTI submissions, or completing other payroll related forms such as P11d’s.

At C & GB Associates, we provide a specialist payroll bureau for many of our clients, ensuring that they are fully compliant with all aspects of payroll, including the new changes coming into force (RTI and automatic enrolment). We keep our clients up to date with changes such as minimum wage, and automatically calculate statutory payments when required such as SMP and SSP. Key features of our payroll include:

  • Production of payslips to suit your business' requirements (weekly, fortnightly, four weekly or monthly)

  • Payroll processing including starters, leavers, overtime, bonus etc.

  • Dealing with all SSP, SMP, SPP, students loans & pension deductions

  • Maintenance of NIC Holiday (if applicable)

  • Monthly payroll schedules provided, detailing each employees gross pay, deductions and net pay as well as a breakdown of all PAYE & NIC due to HMRC

  • Electronic filing of forms P45 & P46 together with a paper copy for the employee

  • Production & electronic filing of all fiscal year end forms & returns -   P35, P14, P60

  • Electronic filing of all RTI submissions from April 2013

  • Provide advice for benefits in kind (BIK) & completion of all relevant forms -   P11d

  • Completion of all other relevant payroll forms that need to be completed

  • All payslips and forms can either be prepared in paper form or emailed to you for distribution to your employees

  • No limit on the number of employees

All the information about our payroll services can be found here.

If you would like more information about our payroll service, or any of the other services we offer, please contact us.

C & GB Associates - Accountants
8-10 Millgate, Thirsk, North Yorkshire, YO7 1AA
Tel & Fax: 01845 525502
Email:       mail@cgb-associates.com

- Child Benefit changes - Q&As

Published by Guy Baragwanath in Child Benefit · 14/1/2013 16:35:07
Tags: childbenefittaxreturnhighincomechildbenefitcharge
Changes to the rules on child benefit which came into force recently will reduce the entitlement for over 1 million families. Questions & Answers to frequently asked questions are included.

- Outstanding VAT Returns will mean HMRC will look at all tax affairs more closely

Published by Guy Baragwanath in Latest VAT News · 10/1/2013 12:21:29
Tags: VAToutstandingreturnVAT
HMRC are launching a new VAT Outstanding Return campaign from March 2013 for businesses with late VAT returns or late VAT payments. All tax affairs will be looked at more closely if VAT is not up to date.

- Payroll... RTI Real Time Information guide

Published by Guy Baragwanath in Universal Credit & RTI · 5/12/2012 16:24:34
Tags: RTIguide
Real time reporting comes into effect from April 2013. Here is our simple guide to RTI and what it means for you as an employer.

- Automatic Enrolment...what it means for you as an employer

Published by Guy Baragwanath in Automatic Enrolment · 5/10/2012 11:25:47
Tags: automaticenrolmentpayrollpensionNESTworkplace
A brief outline about automatic enrolment, what it means for employers and a simple guide explaining how automatic enrolment works.

- New Minimum Wage Rates from 1st October 2012

Published by Guy Baragwanath in Latest Tax News · 1/10/2012 14:46:44
Tags: minimumwage2012
New National Minimum Wage Rates from 1st October 2012

- Proposals for reporting income from Self Employment for the new Universal Credit

Published by Guy Baragwanath in Universal Credit & RTI · 9/8/2012 12:25:34
Tags: selfemploymentuniversalcreditrtihmrcbenefits
Under proposals by the government for Universal Credit, self-employed people will have additional administrative burdens if they are reporting for tax credits including having to report monthly figures within seven days of the month end.

- HMRC Tax Return Initiative launched for people who have late tax returns

Published by Guy Baragwanath in Latest Revenue News · 6/7/2012 11:05:29
Tags: taxreturninitiativelatetaxreturn
HMRC Tax Return Initiative launched to alow people who have not filed their 2009/10 (or earlier) tax returns to file them with the potential of a reduced penalty.

- HMRC launches new crackdown on tax dodgers

Published by Guy Baragwanath in Latest Revenue News · 6/7/2012 09:56:31
Tags: crackdownhmrctaxdodgingtaskforces
HMRC launches more taskforces to find traders who are evading tax in the motor trade, pubs & nightclubs, restaurants, markets, taxi firms and property rentals.

- NatWest & RBS computer system problems: what to do if you are affected

Published by Guy Baragwanath in Latest Money News · 25/6/2012 12:55:42
Tags: NatWestRBScompensationcomputerproblemstechnicalfault
Details of what to do if you have been afected by the NatWest & RBS computer system problems.
C&GB Associates on LinkedIn
Payroll services for schools and academies
Back to content | Back to main menu