Real Time Information (RTI) is beginning to loom. It isn’t long now until this massive HMRC overhaul
will come into effect. We’ve already had a look at RTI previously on this blog, but we’ve put together
a helpful FAQ so that you can be sure you’re up to speed with everything. The new system is a great
innovation and it will be great news if it all goes off without a hitch. Ultimately, it isn’t a difficult
process, so we hope we clear up any issues you’re having here.
When does RTI come into force?
RTI begins right from the start of the 2013/14 tax year. So, you’ll be submitting your first report at
the end of April 2013.
Do I need to register?
Yes. You have to be registered with HMRC to use their online filing system. You will already have
a username and password if you’ve been doing your P45s and P46s online which you can use to
submit your RTI reports. If you haven’t, you’ll have to sign up to here.
What else do I need to do?
You also need to make sure you have payroll software that will allow you to access the
Government’s electronic gateway. This is something we at Rapid Payroll can take care of for you.
When are the reports expected?
They are expected every month on or before the date you pay your employers. Send the reports any
letter and HMRC won’t be happy.
What are the penalties if I don’t submit my RTI information on time?
HMRC have shown a soft side, which is great news when so many businesses are faced with such
a massive change. For the first year (2013/14) there will be no fees for late submissions (as long
as everything is up to date by May 2014). HMRC will send out letters to tell companies when they
would have been liable for a fine. Come April 2014 though, and automated late submission penalties
will begin. A year should be enough to get used to everything though!
Will there still be end of year filing for the 2012/2013 tax year?
Yes. This will still go ahead as normal, so make sure you don’t forget. HMRC, as usual, won’t accept
confusion as an excuse to get out of a fine.
So, that is pretty much it. If you’re using Rapid Payroll then you don’t really have to stress.
Everything will be taken care of and you can just get on with running your business.