Payroll Software News

HMRC launches RTI guidance video

Posted by Editorial Team

A new video has been released by HM Revenue and Customs (HMRC) that is designed to help payroll professionals to understand the new Real Time Information (RTI) procedures.

The visual guide discusses how businesses will be affected by changes that are to be introduced next year.

Among the information included with be the main adaptations, a timetable of when they will occur and the type of help and support that will be available.

The new RTI system will be introduced in April 2013 and will allow employers and pension providers to inform HMRC about Pay-As-You-Earn (PAYE) payments at the time they are made.

Payroll software will collect the necessary information and send it to HMRC Online, with the data submitted throughout the year as part of payroll process.

This is in contrast to the current system, which sees the reports handed over at the end of the financial year.

It is thought the RTI scheme will make it easier for employers to pass on details of their staff and tax allowances.

Head of the stakeholder and communications team in the RTI programme Jane Brothwood said: "It's really important that employers are ready and prepared for the introduction of RTI.

"The video that we have launched should help answer most questions and provide insight for our vision of bringing payroll into the 21st century."

Ms Brothwood urged individuals to take the time to watch the video and see what they need to do to prepare for the change.

It was claimed this will help to make the transition simple for employers, staff and the HMRC.

A pilot RTI was launched in April in a bid to trial the move toward real-time reporting and it is said to have proved successful.

Ahead of the introduction of RTI, businesses will need to check their payroll software is correct and in the right format.

In some cases it may need updating in order to be compatible with the HMRC system.

Companies that do not currently use payroll software will need to plan ahead to ensure RTI information can be submitted electronically to HMRC.

Firms with nine employees or fewer can use the body's free Basic PAYE Tools, which features a new version that is available for download.

Organisations that pay staff directly by Bacs will need to include the hash cross references in their RTI submissions and are advised to speak to their Bacs Approved Solution Supplier about implementing this.

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